When the Confederation of All India Traders (CAIT) released their data, it was anticipated that some 35 lakh couples will tie the knot in the first half of 2023. The cumulative spend across these 70-lakh weddings? Rs 13 lakh crore, again, according to CAIT estimates. KPMG estimates that the Indian wedding market is worth INR 3.68 trillion.
Just after the pandemic, the demand for wedding services during the season grew 49.7 percent quarter-on-quarter across the country, with most of it being generated by tier-II cities, as per a study by internet tech firm Just Dial that provides local search for different services in India through its website and mobile app.
Since India’s wedding market largely remains unorganised, tier-II cities have saw a growth of 106 percent benefitting the growing gig economy. Just Dial said it analysed consumer demand for a wide range of wedding services such as banquet halls, makeup artists, wedding photographers, bands, jewellery, DJs, and planners across 1000 Indian towns and cities on its website.
Just Dial consumer insights said while tier-II cities are powering demand this wedding season, the same in tier-I cities has remained stable. In line with the national trends, searches for wedding bands (152 percent) and lavish banquet halls (145 percent) saw maximum growth in tier-II cities followed by that for DJs (99 percent). Patna and Lucknow were the two cities that saw the maximum searches for all wedding-related services.
“The study said Indore, Mangalore, and Chandigarh dominated the searches for caterers. For wedding banquets, Coimbatore, Surat, Nagpur, Lucknow, Patna and Indore led demand, as tier-II cities saw a 67 percent growth in searches.“
Tier-II cities are powering the wedding season this year with the spending capacity rising to no upper limit. In a general comment, a wedding planner told us that families that spent INR 2 crore on a wedding till about five years ago, now spend INR 8-10 crore.
Nationally, New Delhi and Punjab are the biggest spenders according to KPMG however cities like Chandigarh, Bhopal, Jaipur and Lucknoware rapidly dancing their way to massive weddings. In the south, cities such as Madurai, Bengaluru, Kochi and Hyderabad have seen some large weddings by south standards.
Resulting to above, India’s tier-2 cities are experiencing a remarkable surge in the demand for banquet halls, as discerning individuals and families seek well-organized and high-quality options for weddings and events. This growing trend has caught the attention of organized hospitality chains, prompting them to expand their banqueting business in these cities. With the wedding market booming and spending capacities on the rise, tier-2 cities are swiftly becoming the new epicentre of extravagant celebrations.
Recognizing the untapped potential and the rising demand for banquet halls in tier-2 cities, organized hospitality chains are seizing the opportunity to expand their presence in these regions. These chains are capitalizing on the need for well-managed, upscale banqueting services that meet the expectations of customers seeking memorable and flawless events.
They are renovating existing properties and constructing new banquet halls, incorporating modern amenities and state-of-the-art technology. This expansion ensures that customers in these cities have access to world-class venues that offer the perfect setting for their special occasions.
Alongside the expansion of banqueting facilities, organized hospitality chains are placing a strong emphasis on service standards in tier-2 cities. They are training their staff to deliver exceptional customer experiences, focusing on aspects such as personalized service, attention to detail, and prompt responsiveness. By elevating the service standards, these chains aim to establish themselves as trusted providers of top-notch banqueting services.
The rise in demand for banqueting services in tier-2 cities has a positive ripple effect on the local economies. The expansion of hotels and hospitality chains leads to job creation, both directly and indirectly, providing employment opportunities for local residents. Additionally, the influx of weddings and events stimulates other sectors such as transportation, food and beverage suppliers, event planners, and photographers, contributing to the overall economic growth of the region.
Spectra Hospitality, with its expertise and comprehensive services, is playing a vital role in assisting hotel chains and property owners in capitalising on this trend. Through feasibility studies, operator searches, and customised solutions, they are enabling the successful tapping of the demand for banqueting services in tier-2 cities. With the changing wedding culture, tier-2 cities are poised to become the new epicentre of memorable and extraordinary events in India.