By Chandran Iyer
The big, fat Indian weddings are back and three people are celebrating. One is the bride’s family, the second is the groom’s f family and the third one is the people from the hospitality industry.
With India’s affluent people getting married, left, right, and center the hospitality industry is doing the balle balle Bhangada. The euphoria of the hospitality industry is understandable. During the pandemic, this sector was almost on a life support system. But now with COVID-19 receding and the relaxation of the virus protocols, the hospitality sector has got a much-needed lifeline.
According to data by the Confederation of All India Traders (CAIT), over 3 million marriages will take place this wedding season in India, which will generate a business of over ₹3.75 lakh crore.
COVID-19 had affected every sector across the globe, and the hotel industry was among the hardest hit. A report from McKinsey said recovery to pre-COVID-19 levels could take until 2023—or later.
The tourism and hospitality industry thrives on the footfall of national and international tourists. The travel bans, border closures, events cancellations, and quarantine requirements and restrictions have had devastating impacts on this sector.
The industry experienced the most distressing year in 2020 and suffered massive losses during the protracted lockdown that was imposed to control the pandemic. . Hotels across the country witnessed historically low occupancies. According to FHRAI, the Indian hotel industry took a hit of over 1.3 trillion rupees ($17.4 billion, €14.7 billion) in revenue for the fiscal year 2020-21 because of the pandemic.
However now owing to pent-up demand and the removal of travel restrictions across the globe, the Indian travel industry is in a strong recovery mode. There has been a strong surge in flight and hotel bookings. The resumption of international commercial flights at 100 percent capacity along with the domestic tourists’ revenge travel trend has been one of the main factors.
The hotel industry’s revenues and margins are expected to return to pre-COVID levels in 2022-23, according to rating agency ICRA. Domestic leisure and transient travel will be the main demand drivers, although there will be a gradual recovery in business travel and foreign tourist arrivals.
The hospitality industry people are doing everything to clock more revenues from this opportunity. Hotel bookings are seeing strong demand in bookings. Many hotels in India are already sold out for this and the upcoming season next year already.
“We have witnessed an uptick in demand for weddings with a significant increase in the number of room bookings and banquet sales. The increase in demand is primarily witnessed in the markets of New Delhi, Bhopal, Jaipur, Goa, Ahmedabad, Kolkata, Pune, Chennai, Somnath, and Nagpur. Pride Hotels Group resonates with true Indian Hospitality and has attained high acclaim in the catering and hospitality sector. Guests can expect impeccable service in stunning settings, where the fine craftsmanship and bespoke attention to detail is paid to every moment” says Atul Upadhyay, Senior Vice President, Pride Hotels Ltd.
Many luxury hotels have become destination wedding venues, which is helping them clock 30-40% more revenue from weddings as compared to pre-pandemic days.
This has also given a breather for the decor, local logistics, photo shoots, catering, transport, and other ancillary services which were facing a very tough time during the pandemic.
Weddings are a lucrative business in India. Nearly 15-20 percent of the wedding budget of all the weddings are usually spent on jewelry, It is estimated that about 60,000 crores worth of jewelry are bought every year for weddings, 5000 crores worth of hotel rooms are booked every year, and about 10,000 crores worth of apparels are bought every year. As a result, the wedding industry in India is growing at 25-30 percent annually as nearly one crore wedding takes place here.
Talking about the surge in bookings Atul said “Pride Hotels Group has witnessed a significant movement in bookings across all its properties for the wedding season. All the hotels nationally have seen a surge in bookings for the upcoming season with banquets already booked on many auspicious dates. We have done about 142 weddings in 2019-20 and currently, we have about 257 bookings for November to March 2022-23.
About the factors that are driving this year’s revenue growth, Atul says “India offers a unique picturesque opportunity at the best rates for destination planners worldwide. Specially curated packages themed settings, and personalized cuisines are the factors that are driving big revenue growth in weddings. Every Indian family’s weddings are a vital element of their culture. Weddings must always feature cuisine from various regions. Guests can choose from handpicked multi-cuisine delicacies that pledge to give your taste palette an unforgettable experience. With specially curated wedding packages & cuisines, we reinforce ourselves as a one-stop destination for the big fat Indian wedding.
In India wedding usually happens in two seasons. The first is from November to February and the second is from April to July. But now this trend is also changing as the millennials are more interested in convenience than the season.
The millennials are more interested in having destination weddings. As a result, the Indian destination wedding industry is growing by leaps and bounds. This is because of the rise of the middle class, increasing aspirations of the people, celebrity endorsements, and amplification by the media.
These days affluent families are opting for destination weddings in places like Thailand, Mauritius, Indonesia, Dubai, Malaysia Seychelles, and others.
Mr. Wisnu Sindhutrisno, Director of Tourism Marketing for the Asia Pacific Region says they are targeting the wedding planners in India to promote Indonesia as the destination of Indian weddings owing to increasing demand.
He says “the Indian tourists are eager to travel to Indonesia immediately. They adore various destinations in Indonesia, especially Bali, as their favorite destination. As many as 40% of Indian visitors come to Bali for weddings and honeymoons.
He said the Indonesian Ministry of Tourism and Creative Economy is aware of the condition and has responded to this positive trend for the Indian weddings and honeymoons segment. One of the efforts that have been made is by collaborating with the largest online travel agent in India, MakeMyTrip, in boosting the promotion of Indonesian tourist destinations through their channel.
Wisnu Sindhutrisno
He said “the promotional campaign was held from September 23 to October 22, 2022. The campaign period was designated prior to Diwali celebration in order to attract the wedding and honeymoon segment of the Indian outbound market to choose Indonesia, especially Bali, as their first choice in celebrating that special moment.
When asked much revenue is Indonesia Government targeting from Indian weddings this season? Sindhutrisno said “ The Indonesian Ministry of Tourism and Creative Economy does not specifically target numbers in the wedding and honeymoon segment. However, for the Indian outbound market, wedding is a very important segment apart from honeymoon and family. Currently, a number of Indian visitors are ranked 4th in Indonesia inbound and ranked 2nd in Bali. This condition is undoubtedly a breath of fresh air and a good opportunity amid the Covid-19 pandemic. Hotels in India are going the extra mile to capitalize on this trend of big, fat Indian weddings. Says Atul ‘Our group has serviced more than 53 global national citizens since 1987. Our team facilitates in designing the itinerary, starting from welcoming guests to catering services, and world-class entertainment, to the themed décor. The highly experienced chef design bespoke culinary offerings that make the wedding even more special. Each of our wedding packages is customized as per guest requirements. We have increased our package by 10% only.
About the latest trend, Atul said ‘’The pandemic has affected life because all weddings, celebrations, and other events had to be postponed indefinitely. However, huge gatherings have finally made a comeback. Intimate weddings, Virtual save-the-dates, and Eco-friendly weddings are some of the trends in this wedding season.’’
