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Nina Varghese

Chennai , Sept. 9

SOME five-star hotels in Chennai have hiked their room tariff by 8 to 10 per cent from September 1, and the others plan to follow suit in October, according to hotel industry sources. The tariff, now, is around Rs 6,000 per room night.

A reliable source in the hotel industry said that occupancy levels were going up and since the market was so much better, they felt that the rates had to firm up. However, sources said that discounting also continued side by side, though not to levels seen post 9/11, when rates were less than half of the published rate. Regular customers and groups continue to negotiate good rates for their stay.

Some of the three and four-star hotels are playing the wait-and-watch game before deciding to increase the tariff, hoping to tap into the segment which would resist the hike.

The Mumbai blasts do not seem to have had an affect on the customers, a source said as "most people are now just factoring such incidents into their lives". Tourist arrivals fell early this year, thanks to SARS and the Gulf war, but picked up subsequently and the customer profile continues to be largely corporate.

The hotel industry is also gearing itself up for the World Skal Congress, which is to be held here in October. The rates for this conference have already been discussed and will not be affected by the price increase, a source said.

The food and beverage rates would continue to be same in most hotels.

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