Recruitment momentum in the travel and hospitality sector will continue in 2024.
According to TeamLease Services, the coming year will witness increased hiring in the travel and hospitality by 15 – 20 per cent, as compared to 2023. This surge is particularly evident in the fourth quarter of fiscal year 2024, with an expected uptick of 68 per cent compared to the preceding quarter.
On the hospitality front, major hospitality players including Indian Hotels Company Limited (IHCL), which operates Taj Hotels, said it plans to add 20 hotels across its brands in cities like Patna, Nagpur, Puri, Udaipur, Bhutan, Goa, Gurgaon, and Cochin. Another listed player Lemon Tree Hotels is likely to have 20 openings expected in CY2024, in India, Nepal and Bhutan. Accor has a pipeline of five hotels in the coming year. Marriott International, with a pipeline of 60-plus hotels in the next few years, and Wyndham has a pipeline for adding 40.
A report by hospitality consultancy firm Hotelivate stated With a base of ~ 1,65,000 branded and organised rooms operating in India, another ~ 70,000 new rooms were signed and planned as of 31st March 2023. Of these, about 79 per cent are actively under development and are likely to open for business over the next 60 months. That amounts to a 33 per cent increase in supply on the existing base over the next 4-5 years.
Covid-19 had pushed the construction of several hotels over the past two years. The cascading effect was visible in 2023. IHCL opened 20 hotels, whereas Accord added six new properties in 2023. Lemon Tree added a 23 per cent higher room inventory to its hotels in 2023 alone. According to industry experts, the Indian hospitality sector witnessed the highest room addition in 2023.
The impact of this could be witnessed on hiring as well. According to a report by ‘foundit’ (formerly Monster.com) there were 44 per cent higher listings for jobs in the travel and hospitality sector compared to 2022.
TeamLease believes that this strong churn of hiring will continue in the last quarter of FY24 ending on March 31, 2024 as well. Its analysis states that there will be a 68 per cent increase in hiring compared to the Q3FY24.
According to Balasubramanian A, VP & Business Head, TeamLease Services, the hiring boom is likely to continue for the entire 2024. “The Indian travel and hospitality sector’s hiring rebound after the pandemic is set to continue in 2024, with projections exceeding 2023 levels by 15-20 per cent,” he told businessline.
Another reason for the hiring in the hospitality sector is it faces a higher attrition rate than pre-pandemic times, and hotel companies are seen adjusting their workplace policies to retain existing staff and attract new talent. Job roles for IT, Engineering, Office Services, and blue-collar professions continue to be the top roles for hiring.
In the travel sector too, roles like sales, engineers, marketing, and customer service will see high demand. Tech skills in AI, AR/VR, and online platforms are increasingly sought after. City-wise, Mumbai, Delhi, Kolkata, Chennai, and Hyderabad will lead the charge, leveraging their established infrastructure and tourist activity.
However, the landscape isn’t static.
“Sustainability and responsible tourism will create new job avenues like eco-tourism and conservation, while upskilling existing workforce will be crucial. Government initiatives like Incredible India campaign and infrastructure projects will also play a key role in job creation. So, the travel sector will be brimming with opportunities in 2024 too,” Balasubramanian added.