The study by Egencia attributed this to lower business travel as companies went on a cost-cutting drive, which forced hotels and airlines to cut tariffs.
“Sharp rise in the value of dollar against the rupee, as well as, significant cut in travel spends by Indian corporates have contributed to this decline in prices,” reportedly said Egencia India country manager Gaurav Sundaram. He added business executives now prefer to travel by economy class on airlines and stay in budget hotels against five star hotels in the past.
Although, airfares declined across the APAC region, business class ticket prices for flying in and out of Delhi and Mumbai cities to various destinations halved during January-March 2009 compared to the same period in 2008, much more than any other city in the region. Bangalore also saw air ticket prices decline 35% in the same period.
At the same time, the average room rates in five star hotels in Delhi dropped 44%- the biggest decline in the APAC region in the first three months of 2009. Mumbai stood close behind with a 38% decline in hotel room rates, followed by Singapore where hotel rates were lower by 33% compared to same period last year.
Tokyo, Shanghai and Bangalore witnessed moderate cut with hotel room rates declining 15-17% for business travel. “Incoming business travel in Q1 2009, was impacted by the preparations for general elections in India, which brings uncertainty,” said Mr. Sundaram.
Meanwhile one of the high-end hotels Hotel Leela Ventures Ltd has announced slashing room rates across key city business properties, although it is yet to see a pick up in occupancy levels. The hotel chain has cut rates in its Mumbai property to about Rs. 9,000 ($180) per room this year from about Rs.11, 000 to 12,000 last year, |