Economic Benefits and Challenges of Religious Tourism on Budget Hotels in Northern India: A Financial Perspective

Abstract

Religious tourism is a vital component of Northern India's hospitality industry, significantly benefiting budget hotels in pilgrimage destinations like Haridwar, Amritsar, and Varanasi. These hotels experience high demand during religious festivals, enabling dynamic pricing strategies and increased revenue. However, financial challenges arise during off-peak seasons when demand drops, leading to reduced occupancy and competition from alternative accommodations. This paper examines the economic benefits and challenges of religious tourism on budget hotels, highlighting the role of government support and strategic partnerships with religious institutions. The study emphasizes the importance of balancing pricing strategies and improving services based on guest feedback to maintain financial sustainability.