Corporate travel sees a drop amid extreme weather, election heat

The ongoing heatwave and other extreme weather conditions such as torrential rains in different parts of the country have impacted corporate travel and bookings for hotels and alternative accommodation providers, industry insiders said.The industry expects corporate travel to pick up soon, with the arrival of monsoon rains, schools opening, and work life getting back to normal after the elections.

Devendra Parulekar, founder of luxury villa and holiday home rental company SaffronStays, said corporate bookings are down to zero across locations. “We expect these to resume, once schools reopen and monsoons arrive, when young professionals would love to nudge their team leaders and HR teams to organise getaways to our villas,” he added.

Tejus Jose, director of operations at hotel brands ibis and ibis Styles India, said: “This year, the intense heatwave and the timing of the elections led to some cancellations and trips getting rescheduled.”

He said many hotels have reduced their rates in an effort to maintain their occupancy levels.

“Businesses were cautious about sending employees to areas affected by the heat,” Jose said. “Once the heatwave subsides, we anticipate a greater momentum in travel and bookings, as travellers seek relief and exploration opportunities.”Vishal Kamat, executive director at Kamat Hotels India that runs Orchid Hotel in Pune, said corporate bookings at the property have dipped. “General elections and the heat reduced travel and also affected the food and beverage sales on a local level,” he said. Being the world’s ninth largest travel market for business travel spending, India’s corporate segment saw a temporary dip in travel owing to the general elections and adverse weather conditions across the country during the last two months, said Nikhil Sharma, MD and area senior VP, South Asia, at Radisson Hotel Group.

Sakshi Sehdev Dogra, head of sales and marketing for Eurasia at Wyndham Hotels & Resorts, said the April-June quarter is a comparatively slow period for corporate travel. “Additionally, elections have diverted corporate focus and travel budgets, further reducing bookings at business hotels,” she said.

“Travellers are cautious about locations while scheduling trips in such weather, with seasonal destinations like Jaipur experiencing lower occupancies during quarter two,” she said.

“Bookings have been lower than last year,” Dogra said, adding that she expects corporate travel to pick up from July onwards.

“Although the west has experienced a slight slowdown, Ramada Juhu has averaged a solid 70% occupancy in May. While Ramada Siliguri, which primarily caters to corporate clients, is currently seeing a lower occupancy rate of 60%, we expect this to be a temporary situation,” she added.

Indiver Rastogi, president and group head – global business travel, at Thomas Cook (India) and SOTC Travel, said the company has seen a dip of 10% in travel plans to Delhi-NCR from cities such as Mumbai, Bengaluru, and Chennai.

Kush Kapoor, CEO of Roseate Hotels and Resorts, said while MSMEs are driving the economy and occupancies at present, movement from large corporates is expected to pick up from July onwards.