Hotels & Tourism Q3 Results Preview - Strong Performance To Continue: ICICI Direct
Strong leisure demand, sharp rebound in corporate travel along with much needed reset of room rates to act as key driving force.
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ICICI Direct Report
The last quarter saw a healthy performance despite it being a seasonally weak quarter due to monsoons. This quarter is expected to see another robust performance due to the onset of peak season.
Strong leisure demand, sharp rebound in corporate travel along with much needed reset of room rates (as being seen in H1 FY23) to act as key driving force for the growth in revenues.
As per the latest Directorate General of Civil Aviation data, the daily passenger traffic is now back to pre-Covid levels with domestic air traffic crossing 1.28 crore for December 2022. However, for Q3 FY23 as a whole, we expect passenger traffic to be lower by 6% from pre-Covid levels to 3.6 crore (or 94% of pre-Covid levels).
Foreign inbound travel has so far remained moderate till now but is expected to pick up from Q4 FY23 onwards. However, domestic tourism and sharp rebound in corporate travel to aid in healthy revenue growth for Q3 FY22E.
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