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Hotel bookings up, but room rates low

Hotel bookings up, but room rates low
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First Published: Fri, May 22 2009. 10 21 PM IST
Updated: Fri, May 22 2009. 10 21 PM IST
Mumbai: After six months of sluggishness, travellers seem to be willing to open their wallets. Hotel bookings have risen by 5-10% from January levels.
Anil Madhok, managing director, Sarovar Hotels, said: “I would now say it has got back to normal business.”
The impact of a slowdown due to the terror attacks has worn off. However, hoteliers are worried because average room rates and yields continue to be 20% lower than what it was a year ago. They fear it may take up to two years to go back to 2007 levels.
“Industry sentiment is changing and Indian companies are starting to go ahead with pending business plans. But it will take another year to come back to 2007 levels,” said S.P. Jain, managing director, Pride Hotels and president of industry lobby group Hotel and Restaurant Association, West India.
Hoteliers hope that a stable government and increased tourism due to Commonwealth Games 2010 will help them regain lost ground.
cnbctv18@livemint.com
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First Published: Fri, May 22 2009. 10 21 PM IST