Gen Z props up Delhi's hostel business as hotels miss corporate travellers amid internet shutdowns, traffic curbs

The ongoing student protests at Jantar Mantar are reshaping hotel booking patterns in Delhi, with backpacker hostel chains seeing an uptick in bookings by Gen Z travellers while city hoteliers raise concerns over slowing corporate movement amid internet shutdowns and traffic curbs.

Backpacker hostel chain Hosteller said the share of student travellers has increased by approximately 30% in July compared to the preceding months. "A larger proportion of students have chosen hostel accommodation during this period," its founder Pranav Dangi said.

The student protests have led to traffic curbs, internet shutdowns and shutting of 18 metro stations in parts of Central Delhi.


Offices, restaurants and shops across Connaught Place were advised to close by 6:30 pm on Thursday by New Delhi Traders Association (NDTA) amid heightened security.

"There is a 50% dip in occupancy because of the protests. Tourists and corporate guests are avoiding coming to Delhi," said hotelier Mayank Nagrath, who operates three hotels in Paharganj.

Simran Sial, a member of South Delhi Hotel Association, said there is a minor dip in corporate movement in South Delhi as the impact of the protest is indirect.

"Any movement in Central Delhi (including conventions and conferences at Bharat Mandapam) may get postponed. So, the impact will be there for sure. But, gradually," he said. "If highways get blocked (like the farmer protests previously) the interstate corporate movement will slow down. And that impacted us immensely last time."

Sarovar Hotels CEO Jatin Khanna said business on its books for the last week of July is tracking around 15 percentage points below the typical pace. This could be attributed to some travellers adopting a wait-and-watch approach and deferring non-essential travel plans following the developments after July 20, he said. "We are observing similar booking trends across key NCR markets, including Gurugram and Faridabad. At this stage, we have not witnessed any significant impact on business," Khanna added.

The US embassy in New Delhi had issued a demonstration alert for July 20 and 21, advising US government personnel to exercise caution, avoid affected areas where possible, and plan for travel delays accordingly. Rajeev Mehra, general secretary at Federation of Associations in Indian Tourism & Hospitality (FAITH), said visitor queries to Delhi have decreased.

Several companies in Delhi are asking their employees to work from home for the next few days so that they do not get stuck in traffic snarls caused due to the student protests. Most of these companies in the consulting, services and consumer sectors already have hybrid working models in place, executives told ET. "We may issue a travel advisory for employees going forward in case these protests continue," said Uday Chawla, managing partner at Transearch India.