The hospitality landscape is Bengaluru has always stood out in comparison to other cities like Mumbai and Delhi, both in pricing and customer profile. With the addition of over 3,000 rooms in the four and five-star categories in the last 18 months - most of them in micro markets away from the city centre, the international to domestic traffic ratio in hotels has become 50:50, from 80:20 four years ago.
As per a TOI report by Anshul Dhamija, there are two major reasons for this. Firstly, most of these micro markets such as Hosur, Sarjapur Road, Yeshwantpur and BEL Circle are located close to non-IT industry hubs, such as education, manufacturing, textile, and aerospace, which see a lot of domestic business traffic movement. Secondly, the addition of room inventory has resulted in competitive pricing, making hotel rooms more attractive to the price sensitive domestic traveller. New entrants in the five-star category such as Movenpick Hotel & Spa, The Sheraton Bangalore Hotel at Brigade Gateway, Taj Vivanta in Yeshwantpur, and Novotel Bengaluru Techpark, have priced their rooms aggressively at Rs 6,500 to Rs 7,500 per night, with breakfast being complimentary, as per the report. script type="text/javascript"> GA_googleFillSlot("hospemag_300_250_inside_posts");
Biswajit Chakraborty, GM, The Movenpick Hotel & Spa, said, "The international to domestic traffic at Movenpick is 50:50." He added that the domestic traffic is on the rise even among IT companies.
Ajay Sampige, GM, Hotel ibis Bengaluru on Hosur Road, said Hosur has a mix of educational institutions, small and medium enterprises, and IT companies servicing Indian clients, and it creates a high volume of domestic traffic. "There is also a significant amount of leisure domestic traffic coming from people travelling from Chennai," he further said.
Chender Baljee, CMD, Royal Orchid Hotels, said that the number of new foreign companies setting up shop in Bengaluru has come down, impacting international business traffic volumes. "At the same time there has been a growth in domestic traffic, which is why the international to domestic traffic ratio at hotels have changed," he said, adding that the city's Average Room Rates (ARRs) are down by around 20-25 per cent compared to four years ago.
According to the report, domestic traffic accounts for 60 per cent of occupancy at ibis, which has rooms at Rs 4,499 per night, while at Novotel, the domestic traffic accounts for 40 per cent of occupancy. "It's encouraging to see the emergence of the domestic market as this market segment would shield the industry from any adverse headwinds comingAs per a TOI report by Anshul Dhamija, there are two major reasons for this. Firstly, most of these micro markets such as Hosur, Sarjapur Road, Yeshwantpur and BEL Circle are located close to non-IT industry hubs, such as education, manufacturing, textile, and aerospace, which see a lot of domestic business traffic movement. Secondly, the addition of room inventory has resulted in competitive pricing, making hotel rooms more attractive to the price sensitive domestic traveller. New entrants in the five-star category such as Movenpick Hotel & Spa, The Sheraton Bangalore Hotel at Brigade Gateway, Taj Vivanta in Yeshwantpur, and Novotel Bengaluru Techpark, have priced their rooms aggressively at Rs 6,500 to Rs 7,500 per night, with breakfast being complimentary, as per the report. script type="text/javascript"> GA_googleFillSlot("hospemag_300_250_inside_posts");
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