Uncover how the World Cup 2023 is shaping sectors for success. It is more than cricket – it’s a game-changer for the economy!
India has recently been in the international spotlight, hosting major events, including the G20 Summit. Now, it is again in the spotlight as the sole host of the 2023 ICC Men’s Cricket World Cup.
But the 2023 World Cup isn’t just about sports; it is also a platform where economic dynamics take centre stage, and many sectors benefit from it.
The 2023 ICC Men’s Cricket World Cup is expected to bring a significant economic boost to India, with estimates indicating that it could be as high as $2.4 billion, according to economists at the Bank of Baroda, as reported by Mint.
Now, the question is how this financial boost will likely materialise and which sectors will play a pivotal role in driving this remarkable economic surge.
Sectors Which Will Get a Boost From the Cricket World Cup
With cricket fever covering the nation, it is no surprise that both domestic and international flight traffic is soaring. Fans from around the world are embarking on journeys to be part of this World Cup. However, this surge in demand is having a notable consequence – airfares are on the rise. As reported by Zee Business, flight fares have witnessed an astonishing 80% increase, shooting up to five times their usual rates just ahead of the World Cup series.
The 2023 ICC Men’s Cricket World Cup has triggered a surge in demand for five-star hotels. To meet this rising demand, these luxurious accommodations have raised their rates significantly. According to a report by Jefferies, as mentioned in Zee Business, these rates have increased by an astounding 150%.
In a matter of days, hotel rates have shot up thirteen times their regular prices, with even small-town hotels completely booked. Moreover, this surge isn’t limited to small towns; big cities are also experiencing a significant increase in hotel bookings.
The table illustrates a significant increase in the room rates of five-star hotels on India-Pakistan match days compared to their standard weekend rates.
Quick Service Restaurants (QSRs) like Jubilant FoodWorks (Domino’s Pizza) and food delivery giants Swiggy and Zomato are all set to savour the taste of success, as reported by Zee Business.
This World Cup is expected to bring a surge in food delivery as fans choose to enjoy the matches from the comfort of their homes.
Interestingly, this isn’t a new trend. During the 2015 World Cup, Jubilant FoodWorks experienced a remarkable 6.6% growth in same-store sales (SSG), which was quite different from its usual annual SSG, which had previously been negative by 4.5%.
As the Cricket World Cup draws in tourists from around the world, companies like EaseMyTrip and Yatra are expected to enjoy some significant benefits. The arrival of tourists to India is leading to a substantial increase in travel bookings and revenue.
According to Nishant Pitti, the CEO of EaseMyTrip, as reported by the Economic Times, they experienced a remarkable 46% increase in travel and ticket searches in the run-up to the matches.
The impact of the World Cup is clearly reflected in the numbers. In Ahmedabad, bookings for match days have surged by a staggering 200%, covering both hotels and homestays. In Dharamshala, reservations on match dates have skyrocketed by an astonishing 605% above the platform’s daily average in August 2023, as reported by MakeMyTrip.
Disney Star, the official broadcaster for the 2023 ICC Men’s Cricket World Cup, has achieved an impressive milestone in acquiring sponsorships. It had successfully secured a total of 26 sponsors. As of October 5, 2023, they were still in talks with approximately half a dozen more potential sponsors, according to the Economic Times.
With numerous sectors preparing for a significant upswing, the 2023 ICC Men’s Cricket World Cup is indeed a profitable deal for India’s economic growth.
The months ahead may see excitement and prosperity for these industries, as well as for the investors.
That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!
*The companies mentioned are for information purposes only. This is not an investment advice.