The Cricket World Cup is returning to India after a gap of 12 years, due to which the demand for match tickets has increased and the curiosity about the sporting event starting from October 5 has increased a lot. The matches have also been scheduled at a time when the country's festive season will begin. The hospitality industry and aviation sector can also get a big boost during the World Cup. A lot of figures can be seen for both these sectors in the third quarter. There is a reason for this also. There has been a tremendous increase in hotel and air fares in the cities where the matches of the Indian team are scheduled.
Increase in air fare
The special thing is that there has been an average increase of 150 percent and 80 percent in air fare and hotel fares in those cities. According to Jefferies report, the fares of some flights are increasing by 13 times or even 5 times as compared to the week before the match day. On days when there are no matches in India, the increase in flight rates is much less than on normal days. 10 countries are going to participate in the ICC Cricket World Cup 2023. This tournament will run for 46 days and it will start on 5th October and will be held till 19th November.
Consumption increases
There will be five matches each in Ahmedabad, Bengaluru, Chennai, Delhi, Dharamshala, Kolkata, Lucknow, Mumbai and Pune and three matches in Hyderabad. In India, big cricket events increase consumption. The reason for this is that consumers buy big screen televisions and also stock up on food and liquor. On the other hand, fans are also spending money to watch the match in the stadium. Earlier this month, the Board of Control for Cricket in India (BCCI) released around 400,000 tickets for the tournament following a frenzy for tickets.
hotels have been booked
According to Jefferies, hotels in small cities are already running out of inventory. Whereas, there is a significant increase in hotel rates in major cities. Rooms in hotels in small towns like Dharamshala are fully booked for several days. Apart from booking by spectators, rooms have also been booked for players, support staff, cricket board officials, media etc.
Reserve desks of many hotels in big cities have also indicated that occupancy for match days is already high, due to which the rates are increasing rapidly. As the match days approach, the hotel room rates will keep increasing.
According to Jefferies report, it is too early to say anything about occupancy and rates. There is a reason for this also. Half of the World Cup matches are still more than a month away, but till now there is an increase in hotel and airline fares. Jefferies said in his report that the World Cup matches will be held during the festive season. Such hospitality industry is expected to benefit from this.
No matches in Kolkata and Ahmedabad during Durga Puja
Durga Puja-Navratri festival (in October) is at its peak in Kolkata. Hotel occupancy rates are generally high during this 10-day festival. Which attracts tourists from other parts of India and abroad. It seems that the World Cup Cricket schedule has been made in such a way that no match is held in Kolkata or Ahmedabad during the Puja-Navratri holidays. Because of this, there is a possibility of long occupancy in hotels of Kolkata-Ahmedabad during this festive season.
Expectations of hospitality sector are very high
Jefferies analysts said the days of maximum occupancy for airlines are during the festive season, when rates rise sharply. For hotels, the second half of December is the peak occupancy and rates skyrocket during that time. Now when the Cricket World Cup is also being played in this festive season, the expectations of profit in the hospitality sector have increased a lot.
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