The hospitality sector has become one of the biggest casualties of conflicts between India and Pakistan. Hotel chains are grappling with business slowdown, with more than 50% of bookings getting cancelled over the past week across Mumbai, Delhi, Bangalore and Chennai, as companies have issued travel advisories, sources said.

As a result of cancellations and the decline in fresh room bookings, hotels are staring at a 40% slump in businesses for May, hospitality executives said.  

“Revenue from inbound international tourism accounts for almost 10% of the Indian Hotels Company’s (IHCL) total revenue and about 15% at Ventive Hospitality. As per our calculations, everything else being equal, Indian Hotels could face EBIT losses of around Rs 1-1.5 crore per day and Ventive Hospitality could face per-day losses of Rs 50 lakh on the loss of inbound international tourism,” a report by HSBC Global said.

IHCL runs and operates the Taj brand of hotels under the Tata Group while Ventive Hospitality is the Indian partner to global hospitality giants like Marriott International and Hilton Worldwide.

Over the last week, companies like HDFC Bank, Axis Bank and Tata Communications have issued travel advisories, restricting domestic travelling. Global multinationals have also taken steps along similar lines, reducing the inbound business for hotel chains across the board.