India-Pakistan Tensions Deal Rs Three Billion Blow to Hospitality

14 May 2025 CW Team

India-Pakistan tensions have severely impacted the hospitality sector, with over fifty per cent booking cancellations in cities like Mumbai, Delhi, Bengaluru, and Chennai. The resulting decline is expected to cause a forty per cent business slump in May.

Indian Hotels Company Limited (IHCL), operator of the Taj brand, may face daily earnings losses of Rs ten million to Rs fifteen million, while Ventive Hospitality may lose Rs five million daily due to reduced inbound tourism, according to HSBC Global. Both companies partner with global brands such as Marriott and Hilton.

Major firms including HDFC Bank, Axis Bank, and Tata Communications have issued travel advisories, reducing corporate bookings. Events and conferences have been cancelled, including one with one hundred room bookings in Chennai and another resulting in Rs ten million in losses in Mumbai.

The temporary suspension of the Indian Premier League has further strained revenues. The tournament, spanning thirteen cities, contracts over thirty premium hotels. Hotels are now initiating cost-saving measures such as hiring freezes and optimising occupancy by limiting guest stays to specific floors to manage electricity and power use.

Source: The Financial Express

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