The hospitality industry in India is registering a massive depreciation in its room occupancy and FnB business in what could be one of the leanest months of the year. Compared with last year, over the past few weeks hotels have seen an average drop in business of at least 20 per cent. Although industry experts call this time period as the non-business months, the occupancy rates are hovering at a level of around 50 per cent for most hotels, as against 65-70 per cent in other years during these months.
“If this situation continues for another week or two,it will be a cause of worry,” Sanjoy Pasricha, Vice President-Sales and Marketing, Leela Hotels and Resorts said in a report by Business Standard. Hospitality companies are attributing this to a variety of reasons, starting with the global economic slowdown, the Eurozone crisis and rupee depreciation to a subdued mood of the business community especially in the telecom and IT sector. “The BAR or the best available rate is down by 10% compared to last year. This is a time when businesses are developing strategies at the start of financial year, so travel is less. This coupled with the global slowdown has dented occupancy,” said Sudhir Sinha, President, Best Western Hotels. Present in 100 countries, Best Western has 36 hotels in India with 11 more to open by December 2013.
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