Indian Hotels Set to Reach 70-72% Occupancy in FY24 🏨

Thursday, July 20th, 2023

Good Morning ☕

Picture this: at the end of 2022, occupancy in Indian hotels soared to a whopping 59-61%, a jaw-dropping 15-17 percentage points jump from the previous year. And that is some serious progress! Now in 2023, the hospitality sector is gearing up for an even wilder ride. Domestic demand is gonna stay strong, and international travelers are about to embark on their globetrotting adventures once again!

There might be some clouds on the horizon, like the threat of a recession in the United States and Europe, and those pesky geopolitical issues worldwide. But fear not! India's hotels are ready to rock!

Important News of the Day

1. Indian hotels to witness high occupancy of 70-72% in FY24

According to a report by HVS ANAROCK, India's hospitality sector is expected to recover fully from the Covid-19 pandemic. The industry ended 2022 with occupancy in the 59-61% range, up 15-17 percentage points from the previous year. Domestic demand will remain strong, and international travel will increase, despite the threat of a recession in the United States and Europe, growing global geopolitical issues, and an increase in Covid-19 cases in some countries. Occupancy in Indian hotels is expected to improve to 66% in 2023, which coupled with a 16-17% increase in average room rates will push revenue per available room to $57 during the year, almost 18% higher than the pre-pandemic level recorded in 2019.

2. Govt slashes subsidised tomatoes’ price to ₹70 per kg

The Indian government has reduced the price of subsidised tomatoes from Rs 80 per kilogram to Rs 70 per kilogram to provide relief to the common man from high prices. The subsidised tomatoes are being sold by cooperatives Nafed and NCCF on behalf of the government. The new price will be effective from Thursday, July 20, 2023.

3. Mumbai rains: CM Eknath Shinde orders govt offices to close early

Mumbai Chief Minister Eknath Shinde has ordered the early closure of government offices due to heavy rains and train delays in the city. This decision was made to ensure the safety and convenience of employees amidst the challenging weather conditions. The Mumbai Suburban Railway, which carries over 7.5 million commuters daily, has been affected by the heavy rainfall. Additionally, there have been reports of building collapses and four deaths within two days of the monsoon season. The closure of government offices aims to mitigate further disruptions caused by the inclement weather.

4. Indian Railways launches ₹20 economy meal menu for general category passengers

Indian Railways has launched an "economy meal" priced at Rs. 20 for passengers travelling in general coaches. The meal includes seven puris, potato curry, and pickle and will be available at special stalls on the platforms. The initiative aims to provide affordable meals to passengers and has been successfully introduced at some stations. Additionally, the railways will offer a type two meal for Rs. 50, which will include an assortment of South Indian food such as rice, rajma, chhole, khichdi.

5. Netflix restricts password sharing model in India

Netflix has announced that it will soon ban free password sharing in India. The company has updated its FAQ page on how it will track and find users sharing passwords, and it explains what measures the company will take to stop free password sharing in countries like India, where one Netflix account is often used by four people. Netflix aims to curb unauthorized account sharing without alienating its subscribers. The company has allowed its members to transfer a profile of someone outside of their household so that person can begin a membership they would like to pay for, or they can pay an extra fee of $7.99 a month, per person.

Entrepreneur of the Day👨‍💼

Holding your urine for too long can have serious consequences on your health. Weakening of the bladder muscles over time can lead to incontinence and an inability to fully empty the bladder. Furthermore, the risk of urinary tract infections increases due to the buildup of bacteria. Unfortunately, many of us find ourselves in situations where we have to hold it for prolonged periods, especially when there's a lack of clean restrooms, a major issue for frequent travelers.

Siddhant Tawarawala, a visionary entrepreneur, faced this very problem during his extensive travels and decided to turn this inconvenience into an opportunity. He founded Peeschute, a company that offers a simple yet effective solution to the problem of finding clean restrooms on the go. The company introduced a unisex disposable urine bag lined with a special gel that instantly solidifies urine, eliminating odor and spillage worries. The pouch is designed like an envelope, compact enough to fit in your pocket, and can be easily sealed after use.

Siddhant's journey started in Jalna, Maharashtra, where he grew up and later moved to Mumbai for his engineering degree. Frequent and uncomfortable bus journeys back home inspired him to create Peeschute. While pursuing his management degree at NIRMA University, Siddhant honed his entrepreneurial spirit. Eventually, the idea of Peeschute emerged during a brainstorming workshop, focusing on solving pressing issues without viable solutions. With the help of an incubator called VentureStudio, Siddhant received his first investment of Rs 10 lakh to develop the product.

The development process involved trial and error, experimenting with various materials like empty bottles, zip lock bags, balloons, and condoms lined with cotton and wood pulp to find the best way to store urine without any leakage. The hard work paid off when Peeschute successfully launched its product in 2020, and it gained recognition and investments from angel investors and Shark Tank.

Today, Peeschute continues to grow and has sold hundreds of thousands of units worldwide, serving thousands of satisfied customers. Siddhant's entrepreneurial journey showcases the power of turning personal challenges into innovative solutions that have a positive impact on people's lives. The success of Peeschute not only addresses a pressing issue of sanitation but also reflects the potential of innovation-driven entrepreneurship in shaping a better future for society.

Breaking News: The Scoop You Can't Miss!

1. PFC to use 75% of its ₹5,000 cr NCD proceeds for onward lending, debt servicing

State-owned Power Finance Corporation (PFC) is planning to raise Rs 5,000 crore through non-convertible debentures (NCDs). The NCDs will be listed on BSE Limited, with BSE being the designated stock exchange for the issue. At least 75% of the net proceeds of the Tranche I Issue will be utilized for onward lending, financing/refinancing the existing debt, and/or debt servicing. PFC has previously sold tax-free infrastructure bonds to retail investors and this will be its first taxable bond issue to individual buyers.

2. Centre eases covid norms, drops random RT-PCR tests for international passengers

The Indian government has eased COVID-19 guidelines, dropping the requirement of RT-PCR based testing of a random 2% subset of international travellers arriving in India. This comes amid a steady decline in coronavirus infections in the country, with only 49 fresh cases reported in the last 24 hours. PCR-based tests are highly sensitive and specific, with most assays able to detect 500-5000 copies of viral RNA/mL near 100% of the time. In other news, Air India has faced fuel supply cuts at six airports due to mounting outstanding dues from the airline.

3. Sustainable jet fuel tough for Indian airlines: Boeing

According to a report, Indian airlines are finding it tough to use sustainable jet fuel due to the lack of availability and high costs. The report states that planned production capacities will provide just 1-2% of jet fuel demand by 2027. This comes as India's top two carriers, IndiGo and Air India, have placed record plane orders, betting on the country's untapped potential for air travel and its rise as an aviation superpower. However, recent airline failures and rows over regulations suggest progress may not be smooth. Indian airlines are also facing financial constraints, with fuel supply being cut at six airports due to mounting outstanding dues from the airlines.

4. Govt to table new drugs, medical device bill in monsoon session

The Indian government is set to introduce a new drugs, medical devices, and cosmetics bill in the monsoon session of parliament. The bill will include rules for importing, manufacturing, and selling medicines, and proposes to replace the existing Drugs and Cosmetics Act 1940. The new bill seeks to empower the Central Drugs Standard Control Organization (CDSCO) to regulate the manufacture of drugs and medical devices, instead of state drug regulators as is the current practice. The CDSCO is India's apex drug regulatory body. The bill will be considered by lawmakers next week.

World News 🌎

• UK MI6 spy chief tells discontent Russians: ‘Our door open, share your secrets’

• Covid: US halts Wuhan Institute of Virology’s access to federal funding: Report

• IMF warns of 'exceptionally high' risks for Pakistan

• Older people will make up more than a quarter of the workforce by 2030: Report

• North Korea remains silent on detention of US Army soldier who crossed border

• Ukraine war: Russia strikes Ukraine grain after ending sea deal

• Thai reformist leader's bid to be PM is dashed

• China's 'missing' foreign minister sparks guessing game

• Russia says Crimea bridge partially open to cars again

• Amazon, Google partners with White House to secure devices from cyberattack

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