The Indian hospitality industry is reeling under the impact of escalating Indo-Pak tensions, with hotel chains across metro cities witnessing a dramatic dip in bookings. According to insiders, over 50% of reservations have been cancelled in Mumbai, Delhi, Bengaluru and Chennai in the past week alone, driven by corporate travel bans and safety concerns.

Executives estimate that May could see business decline by as much as 40% due to a slump in both leisure and business travel. A report from HSBC Global noted that Indian Hotels Company Ltd (IHCL) and Ventive Hospitality — operators of the Taj brand and partners of global chains like Hilton and Marriott — could lose crores daily. IHCL may lose Rs 1–1.5 crore in EBIT per day, while Ventive could face losses of Rs 50 lakh daily from the fall in inbound international tourism.

Corporate advisories from firms such as HDFC Bank, Tata Communications, and Axis Bank have clamped down on domestic travel, while global multinationals are also holding back. This has severely affected Meetings, Incentives, Conferences and Exhibitions (MICE), with mass event cancellations and booking withdrawals. A five-star hotel in Chennai lost 100 bookings for a single event, while a Juhu hotel in Mumbai saw Rs 1 crore lost in two days.

Adding to the strain, the IPL’s temporary suspension has cut off a vital revenue stream for premium hotels that host teams and commentators. In response, many hotels are tightening operations — freezing hiring, reducing utility costs, and limiting active floors to conserve energy.