Hospitality industry can flourish

India's hospitality industry is poised to flourish due to strong domestic demand, government infrastructure projects, and increased international tourism. The sector is expected to see significant revenue growth, driven by leisure and spiritual tourism, business travel, and a rise in MICE (Meetings, Incentives, Conferences, and Exhibitions) events. Investment is increasing, particularly in tier-II and tier-III cities, and new technologies and a focus on diverse experiences are further fueling this growth.

The hospitality industry can flourish by focusing on digital transformation, providing exceptional and personalized guest experiences, and adopting sustainable and eco-friendly practices. Key strategies include investing in employee training and development, enhancing technology like contactless services, building resilience to navigate disruptions, and creating unique, experience-driven offerings.

Andhra Pradesh Hotels Association’s (APHA) State new president G. Srinivasa Rao on Sunday (September 28, 2025) said hotel industry in the State would flourish when the government accords industry status to the hospitality sector. He said that all hotels put together had been paying around ₹2,500 crore revenue in various forms of taxes to the government, which needs to take steps for the development of the sector.

He requested the government to allow hotels to function till 12 a.m. as bars were given permission as per the new excise policy. He urged the government to provide bar permission for small hotels with 20 rooms also on the lines of Karnataka State.

The hospitality industry saw a strong comeback in 2024, nearing pre-pandemic travel levels with improvements in occupancy rates, daily rates, profitability, and RevPAR. This shift marks the end of recovery and the beginning of a new era of growth and innovation.

With industry statistics predicting continued expansion—driven by rising Gen Alpha travelers, the growing wellness market, the increasing popularity of workations fueled by remote workers, solo travel and travelers of all ages seeking transformative experiences—the sector is set for continued transformation in 2025.

The hospitality market grew to $4.9 trillion in 2024. The industry’s GDP impact hit a record $11.1 trillion (10% of global GDP) (WTTC). Global tourism reached 1.1 billion travelers between January and September 2024, up 11% from 2023.

Between 2022 and 2032, travel and tourism are expected to grow at 5.8% annually, outpacing global economic growth (2.7%).

For hospitality leaders, staying ahead of trends in the accommodation industry is essential, but it must always be balanced with the fundamental principles of the industry: delivering human-centric experiences that foster connection, comfort, and discovery.

These are the qualities that make hospitality brands memorable and build trust with their customers. By blending innovation with the timeless art of service, businesses can continue to grow and thrive in today’s fast-changing landscape.

Employing over 330 million people globally (WTTC), the hospitality industry's biggest challenge in recent years hasn’t been attracting customers—it’s been finding and retaining staff.

AI-powered talent management systems are revolutionizing hiring by matching roles with skills more efficiently while also boosting employee engagement. However, the future of hospitality lies in prioritizing flexibility, inclusivity, and overall employee well-being.

In 2024, CEOs worldwide took a sharp turn, recalling employees to in-person roles instead of supporting remote work. However, hybrid work has since gained wider acceptance, particularly among younger professionals.

Gen Z employees, for example, value collaboration, transparency, and meaningful work over rigid hierarchies. This generational shift poses a challenge for hospitality, which has traditionally relied on top-down leadership models.

Dr. Borzillo explains: “The hospitality industry remains largely siloed, characterized by a significant generational divide. Senior-aged traditional hoteliers often adhere to a ‘control-and-command’ managerial model, which is vertical and hierarchical.”

To remain competitive, hospitality businesses must embrace a more agile and collaborative work culture.

Some hospitality businesses are pushing beyond net zero, striving to leave the world better than they found it through regenerative tourism. This approach moves “from net-zero to net-positive” by actively improving the environment and local communities. As Dr. Philippe Masset puts it, this shift is making traditional sustainability efforts look “so 2024.”

Some hospitality businesses are pushing beyond net zero, striving to leave the world better than they found it through regenerative tourism. This approach moves “from net-zero to net-positive” by actively improving the environment and local communities. As Dr. Philippe Masset puts it, this shift is making traditional sustainability efforts look “so 2024.”

Leading the way are resorts funding reforestation projects, hotels creating job opportunities for underprivileged communities, and restaurants embracing zero-waste cuisine with ingredients from regenerative farms. While sustainability is now the baseline, regenerative hospitality is emerging as a true differentiator.

Leading the way are resorts funding reforestation projects, hotels creating job opportunities for underprivileged communities, and restaurants embracing zero-waste cuisine with ingredients from regenerative farms. While sustainability is now the baseline, regenerative hospitality is emerging as a true differentiator.