The hospitality industry in India is facing a major crisis as heightened tensions with Pakistan trigger widespread travel restrictions, event cancellations, and a dramatic dip in bookings. Leading hotel chains across metropolitan cities like Mumbai, Delhi, Chennai, and Bengaluru are reporting over 50% cancellations in reservations and a projected 40% slump in business for May.

According to industry sources, the sharp decline follows corporate advisories from major firms including HDFC Bank, Axis Bank, and Tata Communications, limiting employee travel. Global companies have echoed similar precautions, leading to a near halt in inbound international business and group travel.

A report by HSBC Global indicates that Indian Hotels Company Limited (IHCL), which operates the Taj brand, may suffer daily EBIT losses of Rs 1–1.5 crore. Ventive Hospitality, which partners with Marriott and Hilton in India, could see losses of up to Rs 50 lakh per day due to reduced international tourist inflow.

Events and conferences have been hit equally hard. A five-star property in Chennai lost over 100 room bookings for a single event, while a hotel in Mumbai’s Juhu area reported a revenue loss of Rs 1 crore over two days from event cancellations.

The suspension of the Indian Premier League (IPL) has further intensified the blow. With 30+ luxury hotels contracted by the BCCI for team accommodations and logistics, the week-long halt of the tournament has left a trail of cancelled bookings and unrealized revenue. The IPL was scheduled across 13 cities, with matches already disrupted, including a cancelled game in Dharamsala.

Mandeep S. Lamba, President and CEO of HVS ANAROCK, highlighted the broader impact: “Corporate travel and MICE segments are severely affected, with companies adopting remote alternatives and deferring events to ensure staff safety.”

In response, hotels are now implementing cost-control measures. Chains are considering hiring freezes, limiting gig staff, and consolidating operations to specific floors to reduce heating, lighting, and power (HLP) consumption.

With uncertainty looming and tensions persisting, hospitality players are bracing for more turbulence, hoping for diplomatic de-escalation to stabilise the sector.