HYDERABAD: Fears about the economic recession coupled with the terror strikes at Mumbai and the closure of the Bangkok international airport have had a domino effect on the occupancy rate in the five-star hotels in Hyderabad.
Things worsened further with many countries issuing travel advisories to their citizens visiting India in the wake of the terror attacks in Mumbai’s premium hotels. The impact has already started showing with cancellations being seen in hotels across Hyderabad.
Much to the agony of hoteliers, even meetings, conferences and banqueting activities have been affected. While hoteliers are already facing a dip in occupancies, a fall in room rates is excaberating the situation.
“Most likely, we are expecting 20-25 per cent decline in occupancy rates,’’ a source in Hotel Hampshire Plaza told ‘this website's newspaper’. While some players have reduced room rates, in some instances to the extent of 50 per cent, others for whom this is not an option, are renegotiating rates. But many hoteliers feel the situation is gloomier ahead than anticipated. “We could have fought economic slowdown by being creative and innovative in our approach but this is a completely different situation.
The economic meltdown won’t hurt the industry as much as terrorism,’’ said Asutosh Upadhyay, a lobby manager of one of the premium five-star hotels in the city.
“There can’t be business without consumption, which also holds true in the case of hotel rooms, food and beverages and other services we offer,’’ he added.
“It is unfortunate that many corporate clients are going for cancellations. We are monitoring the situation closely. Security at the hotel has been beefed up. The measures include the presence of armed guards and various other provisions to prohibit access,’’ operations manager of Hyderabad Marriott Diana Pillai told ‘Express’. With many corporate clients backing off, many hotels are looking at newer target markets such as transit travellers en route to leisure destinations.
“This option also might prove to be a mirage.
Travel agencies too are witnessing a decline in room bookings. With domestic corporate travellers putting travel on a backseat owing to the hike in airfares, an economic meltdown in the West has put a spoke in non-essential longhaul travel,’’ said Abhinandhan Mukherjee, a travel agent. Many of the hoteliers hope that normalcy in the business would be restored in the long term.