The Hotel and Restaurant Association of Western India (HRAWI) has claimed that the hotel businessÊis in theÊdoldrums, though there might be a spurt in the domestic activity or travelling.
HRAWI strongly contradicted recent surveys suggesting that the IndianÊhotel industryÊmight have come out of a decade-long slumber. The association said while it might be true for a small section or class of hotels, it definitely did not hold good for the overall hotel industry. It indicated the opposite to be true.
“While there may be an increase in the domestic activity or travelling, there is no evidence to establish that the hotel business is bouncing back,” saidÊDilip Datwani, President, HRAWI.Ê”The average room rates (ARRs) are 30 per cent lower than what they used to be ten years ago.”
The trend in rising occupancy is the fallout of the popularity of Online Travel Agents and aggregators and has little to do with hotel business picking up. The industry now has to face unfair competition in the trade with the emergence of the so-called ‘home stay’ option.
“This, too, has started to nibble at the hotel industry’s share of pie without having to deal with policies, regulations, taxes, laws and licences, which the industry has to put up with,” said Mr Datwani.
By Neha Medaan from The Times of India
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