| Historically,
hoteliers have followed a dual tariff system that allowed
them to quote room rates in both US dollars and Indian
rupees.
NRIs and foreign guests were charged dollar tariffs,
which were usually pegged 10-20% higher than those paid
by Indians. Majority of guests at five-star hotels being
foreigners, this policy was beneficial for them, till
recently. Due to devaluing dollar, from Rs.46-47 to
the recent low of Rs.40 with a good chance of the greenbacks
hitting sub-forty rates, the revenues have been suffering.
The big daddies - the Taj group, ITC and Oberoi have
all adopted this new strategy across its properties
and an internal circular towards this effect. However,
guests will be welcome to settle their bills in foreign
exchange.
Not all hotels have waited for this date to make the
change. Hyatt Regency has had this policy for two years
now. 'We switched to this system a couple of years ago
because we felt it was not fair to use a dual system
and have the foreign guests pay more. It was a coincidence
that this policy became remunerative due to the slide
of the dollar,' says Roger Lienhard, General Manager
of the hotel.
The logic behind choosing this date is simple- the
tourist season begins in September and the new rates
which are generally hiked up annually, become effective
on this day. This year too the rates have been escalated
by 15-25% keeping the shortage of supply in mind. Bangalore,
which handles over 50% of all the business travellers,
is the worst hit.
Tourist arrivals in India touched 4.44 million during
2006. The number is expected to cross 5 million this
year and jump to 10 million by 2010 when the commonwealth
games take place in Delhi. Domestic tourism is also
growing. The hotel industry has only 110,000 rooms with
a shortfall of 150,000 rooms, which explains the escalation
in tariffs.
Source: http://timesofindia.indiatimes.com
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