New Delhi: Looking to cash in on the rising rupee against the US dollar, the hospitality industry in India is mulling toward shifting to a single tariff system based on the domestic currency.
Taking the lead in the shift is the Taj Group of Hotels, which will be charging only on rupee terms across all its properties in India starting this September.
“Since rupee is doing well and the dollar is fluctuating, we have decided to move to a single tariff system wherein we will be charging only on rupee terms,” Indian Hotels Co Senior Vice-President Sales and Marketing Ajoy K Mishra told PTI on the sidelines of Hoteliers Conclave here.
Traditionally, the hospitality industry in India follows a dual tariff system based on rupee, meant for the local market, and a dollar tariff for international customers.
Another hospitality major ITC Group is also thinking on similar lines to move to a rupee tariff. The Indian unit has risen more than 10% against the greenback and is trading around Rs 40.8 as against nearly Rs 46 a year ago. With the rupee rising, hotel companies lose revenue from international customers when they pay in dollars.
“If the industry is going towards single tariff system, then ITC may also do away with the dual system,” ITC Hotels Vice-President and General Manager Maurya Dipak Haksar said.
While other players are now moving to the single tariff system, hotels such as the Grand New Delhi, run by Unison Hotels Ltd, has always followed a rupee-based tariff.