The message was conveyed to the Federation of Hotel and Restaurant Associations of India at a meeting called by Minister Ambika Soni to assess the impact of the global slowdown on the tourism sector. However, Sanjay Kothari, Additional Director General in the Ministry of Tourism, clarified that this is not a directive, but only an advisory.
This is the peak tourism season and occupancies are quite high. But in November last year, hotels were turning down bookings for January. That situation may not arise this year. So in anticipation of a slowdown, the Tourism Ministry has offered this advice and is asking hotels to prepare with a rate cut, though it is not mandatory.
The directive or advisory as they call it, seems to be uncalled for. Hoteliers are professionals and if the situation arises are not averse to bringing down the prices by 50% or even more as happened 3 years ago. Room night is a perishable commodity and every General Manager worth his salary does his best to achieve maximum occupancy.
Says a General Manager of one of the 5-star hotels in Delhi, 'we are well aware of the directive. But I don't think this advisory applies to us. We are running a full house and at least for the next one month, we are sold out. If and when the situation arises, we shall react automatically. In any case, this situation might be applicable to a few pockets. In a place like Delhi, there is a perennial shortage of rooms so the demand is expected to outstrip the supply, for a while.'
A quick survey of Oberoi, Hyatt, Taj and Sheraton Hotels indicates that the occupancies are very high. 'We do look at the profile of our frequent corporate guests and consider giving them a special discount to make them feel connected to us,' says another seasoned hotelier.
As is customary, most of the hotels had escalated their room tariffs last month before the economic crisis unfolded in full bloom. The hotels expect a slight slackening of the demand and are constantly keeping a watch-as a normal business practice and do not like the tourism ministry 'playing a nanny to the hospitality industry.'
A sarcastic comment by a hotel executive sums it up, 'where were they when the occupancy was dismal and we had to bring our rated down to $120 a room night and suffer huge losses?' |