High-end hotels in India slash rates
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Premium hotel chains across India have cut prices by another 15% to lure customers as the global credit crunch continues. The Economic Times said this was the second price cut by five-star hotel chains in nearly four months. They reduced room rates in December-January
After the recent cuts, room rates at five-star hotels in India are around 30% to 35% lower than what they were a year ago.
In Delhi, average daily rates (ADR) have come down to INR10,000-INR12,000 (US$198-US$237) from INR16,000 to INR18,000. In Mumbai, room tariffs are down to INR7,500-INR9,000 from INR10,000 to INR12,000.
“We are only going to see room rates softening to more realistic levels in the future,” Manav Thadani, Managing Director, HVS, a hotel consultancy firm, was quoted saying.
According to the report, chains like Leela, Oberoi, Marriott, Hyatt, ITC and Lemon Tree were understood to have been offering special packages and discounts to tackle the drop in occupancy, which was currently at 65-70% against last year’s 85%.
With the peak season coming to an end in March, and the beginning of lean season starting from April to September, the report said hotel companies were worried that margins would be under pressure this year.
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