The Hindu Business Line : Travel sector faces lodging hurdle

THE recovery in the country's travel sector, which began late last year, has hit top gear and is beginning to show up the inadequate supporting infrastructure, especially hotel rooms.

"Hotels in the metros are over-booked and seven out of 10 visitors are being turned away on account of the crunch," says one industry spokesperson.

According to a spokesperson for SITA Inbound, while most people were expecting a good season, the traffic volumes have taken everybody by surprise.

And unlike the usual trend — shortage of rooms in November and February — this year round the pressure will be felt right through to March.

He adds that the traffic is being driven by the larger than normal number of conferences being hosted during this period. This calendar year, SITA Inbound expects to handle 1.10 lakh passengers and post a turnover of Rs 185 crore -190 crore, up 58-60 per cent on the Rs 120 crore posted last year, when the company handled around 75,000 passengers.

He adds that the buoyancy in arrivals is expected to stretch into the next year as well and the company hopes to post a turnover of Rs 230 crore.

Obviously, the hotel industry is not complaining about the demand, coming as it does after three tough years in the sector.

The Senior Vice-President, Sales and Marketing, Indian Hotels Company Ltd, Mr Ajoy Misra, estimates that the occupancies across the key cities during the coming season would average 85-90 per cent.

The Grand Hyatt here, which opened in last March, also received a good response with occupancies currently running at 80 per cent.

According to the General Manager, Mr Josef Kufer, the demand is driven by meetings, incentives, conventions and exhibitions traffic and foreign and domestic business travellers.

He expects occupancies to move up further after Diwali and the strong trend to continue up to February-March.

The average room rent (ARR) is around Rs 5,500 per night, up from about Rs 4,800 two months back. The Leela, which recently completed the first phase of a $20-million renovation, has reported an occupancy of 80-90 per cent currently.

According to the Group Head, Corporate Communications, Ms Mithu Basu, occupancy was likely to touch 100 per cent after Diwali. The ARR was currently at close to Rs 6,000, up from about Rs 5,000 in August.

According to an official tracking tourism in the country, the pressure on hotel rooms, travel, and even guides at tourist destinations could be eased if some of the event and conferences are shifted from the peak winter season to the shoulder months between April and September. According to the spokesperson with SITA Inbound, this can be done by running promotional campaigns and offering good deals on air and rail tickets as well as hotel rooms.

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