Inside India newsletter: Iran war disruptions, Modi's appeal to boost India's hospitality sector
The ongoing conflict in the Middle East is impacting travel patterns for Indian tourists, leading to a shift towards domestic tourism. Hospitality companies in India are experiencing a surge in bookings as travelers opt for local destinations instead of international trips. Experts predict that this trend could significantly boost the local tourism industry, particularly in areas like destination weddings.
- ▪Marriott International reported a recovery in revenue per available room in May, indicating strong demand ahead.
- ▪Travelers are increasingly choosing to explore destinations within India due to disruptions from the Iran war.
- ▪SaffronStays has seen a nearly 40% increase in bookings for May, with forward bookings for June up almost 50% compared to last year.
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| Canonical URL | https://www.cnbc.com/2026/05/28/iran-war-disruptions-modis-appeal-to-boost-indias-hospitality-sector.html |
| Publication time | Thu, 28 May 2026 00:06:14 GMT |
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Rajeev Menon, president of APAC ex-China at Marriott International, told CNBC's "Squawk Box Asia" that revenue per available room in May was "back to double-digit numbers," and the "pace remains pretty strong," going in the months ahead.The hospitality chain's revenue per available room had dropped in March, dashing expectations of double-digit growth, due to the conflict in the Middle East. Given the challenges due to the Middle East conflict, "I think what is playing out is people have pivoted and shifted their plans to stay within Asia and [are] trying to avoid going too far away," Menon said.In 2025, more than 14 million Indians took leisure trips abroad, according to government data.
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