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The HVS survey on 'Hotels in India-trends and opportunities'
has revealed that the hotel industry overall saw a 12-month
average growth of 30 per cent in 2006-07 as opposed
to a growth of 23.7 per cent in the previous year.
Whereas, occupancy growth, which had been 2.6 per cent
in the previous year, showed a marginal growth of 0.7
per cent in 2006-07.
The continued demand-supply imbalance has led to exponential
rate increases resulting in inflated room rates across
key markets in the country, some of which currently
rank among the most expensive hotel markets in the world.
"Research indicates that the effects of spiralling
rates have already been noticed in most markets. For
the first time in four years, markets have started showing
a decline in occupancy," the survey said.
It said the trend resembles the period starting 1996-97
where occupancies had started to decline but average
rates continued to rise for a few years thereafter.
The survey which covered 268 hotels with a total of
34,784 rooms also revealed that the high rates have
also resulted in emergence of an unregulated and unorganised
hotel/guesthouse sector which is witnessing a boom in
cities like Bangalore, Delhi and Pune.
However, despite drop in occupancy for the four major
cities in India, there was an across-the-board growth
in terms of occupancy for the various market segments.
There are strong demand indicators emerging from Tier
- II markets with the three-star segment witnessing
highest growth in occupancy at 3.3 per cent, This was
followed by the five-star category at 0.9 per cent and
the five star - deluxe and four star at 0.3 per cent
each.
Source: http://economictimes.indiatimes.com |
