Travellers want once-in-a-lifetime luxe experiences, not hesitant to spend more

A focus on food and personalised experiences were also on the cards.

By Glynda Alves, ET Bureau | Feb 17, 2023, 07.25 PM IST

With the festive season just behind us and the wedding season here, the city is looking and booking new ways to celebrate. It is well known that globally the hospitality industry was amongst the most severely impacted industries by the pandemic. The sector witnessed over two years of restrictions on gatherings and celebrations. However, in the last year and moving onwards, there has been an evident paradigm shift in consumer behaviour - guests are now looking for options to unwind and celebrate and opted to splash out on luxury, longer stays and give in to their YOLO attitude.

One of the most striking characteristics of the luxury sector is that spending is often based not on rational decision-making and reasoning but on emotions and feelings. And that is something Anuraag Bhatnagar, Chief Operating Officer, The Leela Palaces, Hotels and Resorts says they saw a lot of. “With everything that the world has been through over the last two years, the one thing that has not changed is the root of human nature and their desire to travel and experience life. Travellers today are taking those bucket list trips and spending on once-in-a-lifetime experiences,” he says.

Sandeep Singh, Director of Operations, JW Marriott Mumbai Sahar, echoes this sentiment and shares that the revenue growth in 2022 was 45% higher than 2021, owing to the increase in the number of covers and a higher average per cover. Atul Bhalla, Area Manager (West & East region, ITC Hotels) and General Manager, ITC Maratha, says that this paradigm shift was a welcome change this year. “To establish a perspective: Mumbai Hotels have traditionally considered Year-end as a slow period; this segment particularly did well at an average of 68%-70% occupancy this season with greater opt-ins. The celebratory sentiment from customers came out strongly for luxury segments and options closer to home,” he adds.

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Bigger spends
Destination hotels, freedom to spend more and longer holidays are some of the trends the hospitality sector continues to see during the festive and wedding season. A focus on food and personalised experiences were also on the cards.

Bhatnagar shares, “Our destination hotels were particularly in demand. City hotels also saw an unprecedented demand with staycations being the primary driver. Larger accommodation that lends itself to privacy and exclusivity, like villas with private pools and suites have been more in demand. Guests are more willing to spend on luxury services and unique dining experiences. Personalisation has become popular.”

The celebratory sentiment from customers came out strongly for luxury segments and options closer to home, adds Bhalla. “Family staycationers checked in early and with groups, indulged in the spa and curated dinner services. The spends were more than in traditional years,” he says.

According to Singh, this year guests wanted a grand and exorbitant celebration with regard to F&B. “They requested multi-cuisine experiences instead of one particular cuisine. This year guests were willing to spend 2x more compared to 2021, to cover up for the lost time.”

Coming home
Nikita Ramchandani, General Manager, JW Marriott Mumbai Juhu, says that the hotel experienced an uptick in business across functions – healthy occupancy rates, restaurant dine-in revenues as well as recreational experiences. With a more predictable landscape, longer booking windows and high occupancy rates, their numbers exceeded pre-pandemic levels.

A good majority of Non-Resident Indian guests returned after a two-year long hiatus and displayed a high propensity to spend on quality, luxurious experiences, she adds, saying that the majority of their international guests were from the United Kingdom, the United States of America and the United Arab Emirates.

Utsa Majumder, General Manager of Hyatt Regency Dharamshala Resort, shares that their numbers have been increasing every year since the pandemic and the graph continues to show an upward trend. Curation is key.“Currently, the hospitality industry is more focused on curating experiences because we believe that memories are what make people revisit that place.”

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