Last year was a tough one, especially for India’s tech sector and the Startup ecosystem. Massive layoffs affected thousands of people in India and worldwide, and as people struggled to find jobs, there was a palpable gloom over employment opportunities.

But now a glimmer of hope comes in as hotel operators, who had previously made extensive job cuts during the Covid pandemic, are now actively recruiting in large numbers to accommodate their ambitious expansion strategies and address vacancies resulting from high employee turnover. 

It is anticipated that approximately 200,000 job opportunities will emerge within the hotel, restaurant, and tourism sectors over the next 12-18 months, as per estimates provided by staffing services firm TeamLease Services. 

Balasubramanian A, vice president and head of consumer, Hospitality, and ecommerce at TeamLease, predicts that roughly half of these positions will be within the hotel industry.

In response to a significant surge in both business and leisure travel, hotels across various segments are strengthening their workforce by adding more rooms and venturing into new markets. The roles being aggressively hired include a blend of permanent, temporary, and gig positions.

The technology sector bore the brunt of the economic downturn, witnessing more than 25,000 layoffs within the initial month of the year. This downturn had a ripple effect, impacting industries such as gaming, retail, and human resources. 

Notably, leading IT services companies in India, including Tata Consultancy Services, Infosys, and Wipro, witnessed a substantial exodus of 64,000 employees in FY24. 

The was attributed to a weak global demand environment and reduced tech expenditures by clients. Wipro, in particular, experienced a decline in headcount to 234,054 as of March 2024, down from 258,570 in the preceding year.

India’s IT services industry, valued at $254 billion, has struggled with the effects of global macroeconomic uncertainties and geopolitical tensions, leading to a cautious approach among clients regarding IT investments.

However, those who may have been affected by the massive churning have more to look forward to, with opportunities opening up in both the hotel and travel sectors. 

The Positive Numbers, Opening Jobs

According to projections by TeamLease, domestic tourist numbers in India are expected to rise by 10 million over the next one to two years, reaching 180-200 million from the current levels. 

Foreign tourist arrivals are anticipated to grow by 20% within the same timeframe and triple within five to six years from the current annual figure of around 10 million. The hotel industry stands to benefit directly from this anticipated growth.

In response to this promising outlook, Royal Orchid has outlined plans to introduce three new brands, including an upscale five-star brand, for which they have secured a new 300-room property in Mumbai.

The current portfolio of Royal Orchid Hotels comprises just over 100 hotels, totalling close to 6,000 rooms. Most of its forthcoming inventory, consisting of around 2,000 rooms, will be concentrated in western India, followed by the northern and eastern regions.

Chander K Baljee, the chairman and managing director of mid-tier Royal Orchid Hotels, revealed plans to expand by adding approximately 2,000 rooms across various properties this year, alongside a target of hiring around 5,000 individuals across different levels. 

The industry is experiencing significant attrition rates, ranging from 30% to 50% per month for many small and mid-tier hotels, prompting a surge in replacement hiring, as noted by industry executives and staffing companies.

Baljee emphasized the need to fill vacancies resulting from a 30-35% attrition rate out of a total workforce of 8,000 employees.

Similarly, Samir MC, the managing director of Fortune Hotels, anticipates an 8-10% increase in hiring this year compared to the previous one, driven by ambitious expansion initiatives. 

Fortune Hotels currently operates over 5,000 rooms across 56 cities and is actively recruiting for front desk, housekeeping, administrative, and food and beverage roles.

Another mid-tier player, Lemon Tree, plans to expand its room inventory by approximately 2,000 this fiscal year and hire 3,000-4,000 individuals across different levels. According to Patu Keswani, the chairman and managing director, this hiring strategy includes filling attrition vacancies totaling 1,500 positions.

Front desk agent, concierge, guest relations manager, housekeeping, and maintenance staff are among the top roles in demand. 

Additionally, specialized positions such as maintenance technicians, chefs, and recreation managers are experiencing heightened demand, with a reported increase of over 35% in the last quarter compared to the previous year, as indicated by Manpower.

Aditya Narayan Mishra, the chief executive of Ciel HR Services, highlights a substantial year-on-year increase of at least 20% in demand for manpower from the hotels and hospitality segment. 

Professionals in sales, marketing, digital marketing, technical roles, and HR are particularly sought after.

According to a recent report from ratings firm ICRA, the hotel industry is expected to witness revenue growth of 7-9% in fiscal 2025. Likewise, travel platforms are ramping up hiring efforts in response to the overall uptick in leisure and business travel.

Reviewing the Past Year

In 2023, the hospitality sector in India witnessed a notable resurgence, characterized by escalating hotel rates, rising airfares, and increased travel expenditures, which translated to a promising outlook for tourism and Hospitality in the country. 

The outlook for 2024 is strong, with sustained growth anticipated, especially in domestic travel. 

Premium hotels nationwide reported impressive occupancy rates ranging from 70% to 72%, with average room rates surpassing ₹6,000 per night, as indicated by the rating agency Icra. 

Notably, hotel revenues increased vigorously by 20% compared to 2022, and operating margins exceeded 30%.

So, what is driving the strong growth in the Hospitality Industry?

Several influential factors contributed to the significant growth of the hospitality industry in India in 2023-24. 

Foremost among these is the substantial double-digit revenue increase, driven by a resurgence in domestic demand and the recovery of foreign tourist arrivals. 

The year saw a positive trend in domestic leisure trips and a thriving revival of meetings, incentives, conferences, and exhibitions (MICE) events. 

Likewise, hosting major global events such as the G20 Summit and the ICC World Cup played a crucial role in fueling the industry’s success. 

The return of business travellers also made a significant contribution to the growth of the hotel industry in India during the year.

Also, the appeal of visa-free travel offerings from countries like Malaysia, Sri Lanka, Thailand, and Kenya has contributed significantly to the rising demand for outbound travel. 

In the first ten months of 2023 alone, the total number of outbound tourist departures reached an impressive 22.6 million, surpassing the previous year’s figure of 17.5 million for the same period. 

Additionally, the country experienced a substantial increase in foreign tourist arrivals, welcoming 7.2 million visitors during the first ten months of 2023, a noteworthy surge from the 4.6 million recorded during a comparable period in 2022.

The Big Boom In Religious Tourism

India’s tourism and hospitality sectors have witnessed a remarkable surge in religious tourism, with destinations like the Ayodhya Ram Temple, Kashi Vishwanath, and Mahakal Temple in Ujjain attracting growing numbers of spiritual pilgrims. 

The estimated annual influx of over 50 million tourists to Ayodhya shows the escalating interest in these sacred sites. 

Additionally, the inauguration of the Kashi Vishwanath Corridor in Varanasi in 2021 has further boosted tourism in the city, with government data indicating that 130 million visitors have already visited the area. 

Other religious landmarks such as the Tirupati Temple in Andhra Pradesh, drawing 25 million annual visitors, and the Vaishno Devi Temple in Jammu and Kashmir, hosting 8 million visitors yearly, continue to hold deep spiritual, historical, and cultural significance across India, contributing to the growth of the hospitality industry.

This surge in tourism is not merely about spiritual exploration; it also serves as a significant economic driver for India. 

The focus on infrastructure development and city branding initiatives has attracted a substantial influx of tourists, promising numerous employment opportunities across various sectors, including Hospitality, travel agencies, transportation, and more. 

As these cities continue to evolve, they attract tourists and lay the groundwork for sustainable economic growth and development.

Surging Opportunities and Hiring Trends in 2024 

Propelled by the surge in travel, India witnessed a remarkable 50% increase in hiring for tourism and hospitality positions between December 2022 and 2023. 

The World Travel and Tourism Council (WTTC) ‘s Economic Impact Research has forecasted India’s ascent to become the third most influential market in the global travel and tourism industry. 

Looking ahead, the upcoming year is set for a 15-20% growth in hiring within the tourism and hospitality sector in India, with a particularly notable surge expected in the fourth quarter of fiscal year 2024, projecting an impressive uptick of 68% compared to the preceding quarter.

Ministry of Tourism data reveals that in 2022, religious tourism welcomed a staggering 1439 million visitors, generating ₹1.34 lakh crore in revenue from these sacred sites. 

Projections indicate that by 2028, the sector is poised to yield a revenue of 59 billion, concurrently creating 140 million temporary and permanent jobs by 2030. 

The Ayodhya Ram Temple’s religious tourism alone is estimated to contribute nearly 25,000 employment opportunities across various roles such as chefs, front desk managers, housekeeping staff, and tour guides, significantly contributing to the growth of the hospitality industry in India.

Sustainable Tourism

As the industry progresses, there’s a growing focus on sustainability and responsible tourism, opening up new job opportunities, especially in eco-tourism and conservation. As a result, upskilling the current workforce is seen as essential to meet the industry’s evolving demands. 

Government initiatives like the Incredible India campaign and infrastructure projects are expected to play a crucial role in job creation. Consequently, the travel sector anticipates abundant opportunities in 2024.

In the realm of Hospitality, major players such as the Indian Hotels Company Limited (IHCL), renowned for its Taj Hotels, are gearing up to expand their presence by adding 20 hotels across various cities. 

Similarly, Lemon Tree Hotels, another prominent player, plans to launch 20 establishments in CY2024, spanning locations in India, Nepal, and Bhutan. 

Accor has also outlined plans for a pipeline of five hotels in the coming year. Meanwhile, Marriott International and Wyndham are strategically positioned for substantial growth, aiming to incorporate over 60 and 40 hotels respectively in the next few years. 

These ambitious expansion strategies emphasise the dynamic and flourishing trajectory for the hotel industry’s future in India.

Impact of Budget 2024 

The 2024 budget announcement discusses a promising path for India’s Travel & Tourism industry, buoyed by the successful hosting of G20 meetings across sixty locations. 

This global platform showcased India’s economic dynamism and positioned the country as a premier destination for business and conference tourism. 

In response to the escalating demand for domestic travel, the budget allocates resources to enhance tourism infrastructure, particularly in scenic locales like the Lakshadweep Islands. 

Investments in port connectivity, tourism amenities, and infrastructure projects aim to stimulate domestic tourism, spur economic activity, and create employment opportunities in these regions. 

The Last Bit, India’s tourism and hospitality industry, witnessed significant recovery and growth in 2023, fueled by increased domestic and international demand, major global events, and expansions in hotel chains. 

Going forward, the trajectory looks promising, offering plenty of job opportunities both in the hospitality and travel sector.