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Report: India’s hospitality hiring may hit 5.1 percent

Regional cities lead workforce expansion

Report: India’s hospitality hiring may hit 5.1 percent

India's travel and hospitality sector projects 5.1 percent net employment change in the first half of fiscal year 2026-27.

Photo Credit : iStock

Highlights

  • India hospitality hiring projects 5.1 percent in H1 FY2026-27.
  • Indore, Kochi and Lucknow top regional hiring list.
  • Sector GDP seen nearly doubling to $523 billion by 2034.
INDIA’S TRAVEL AND hospitality sector is projected to see a net employment change of 5.1 percent for the first half of fiscal year 2026-27. The data points to a sector finding its footing rather than pulling back, with hiring now more closely linked to real demand.
The findings come from the Employment Outlook Report by TeamLease Services, covering 1,268 employers across 23 industries and 20 cities between November and January. Of those surveyed, 63 percent plan to grow their workforce, 20 percent expect no change and 17 percent anticipate reductions.

Jobs are expected to grow across hotel operations, food and beverage, event management, travel coordination and wellness tourism, according to The Economic Times. Sales and marketing is where most companies want to hire, with 53 percent planning to expand those teams. Business continuity follows at 49 percent, with finance at 36 percent. The focus is clearly on bringing in more customers, building digital presence and keeping finances in order.

"While the 5.1 percent net employment change reflects a moderation from the previous half year, it is more accurately a phase of stabilization within a structurally expanding sector," said Balasubramanian A, TeamLease senior vice president. "Demand is increasingly being shaped by infrastructure-led tourism development and schemes such as Swadesh Darshan 2.0 and PM GatiShakti, alongside rising MICE and religious travel flows. This is translating into more disciplined, demand-linked hiring rather than anticipatory workforce expansion across the ecosystem."


Regional markets rise

Business travel, MICE, religious tourism and domestic leisure travel are all picking up. Add to that the growing interest in Tier 2 and Tier 3 destinations and the sector plenty to keep it moving forward.

Last year, Horwath HTL said India's hotel industry was on track to cross 300,000 rooms by 2029, adding more than 100,000 new ones, with religious tourism, rising incomes and new infrastructure projects driving much of that growth.

Sarovar Hotels recently opened two properties in Jaipur and Mathura, with a clear eye on pilgrimage, leisure and wedding travelers. Last year, the Ministry of Tourism announced plans to set up city-level convention bureaus from 2026, with the goal of making several Indian cities bigger players in the global MICE market.

Among cities, Indore, Kochi and Lucknow are emerging as strong hiring ground, with expansion intent of 20 percent, 18 percent and 15 percent respectively. Better road and air links, more spending power and a steady flow of travelers are making these cities attractive for hospitality businesses.

Pilgrimage towns and newer tourism spots are also picking up, meaning jobs are no longer just concentrated in the big metros. Salaries are also expected to go up, with the sector projecting an increment of 9.2 percent by rising disposable incomes, better regional connectivity and growing travel demand.

The bigger picture looks good. The sector is expected to nearly double its GDP contribution, going from $256 billion in 2024 to $523 billion by 2034 and could support close to 63 million jobs along the way. For now, the focus is on building teams that are ready to deliver, not just filling seats.

Separately, a recent Hotelivate-Savills report in April found India's hotel development pipeline crossed 120,000 rooms in 2025.

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