Hotel rates in India are likely to remain static for the first time in years in a boost for Australian travellers, relieved wholesalers and tour operators have said.
India’s hotel rates have ballooned due to a lack of quality accommodation in major tourist hubs. But with the impact of the financial crisis, coupled with a surge in rooms, rates are expected to stabilise.
“In the past few years there has been significant undersupply, particularly in the premium properties, and there were a lack of mid range properties as well,” said Tempo Holidays chief executive Steve Reynolds.
Hotel groups responded to the shortfall by expanding across India. Accor has committed to 48 hotel developments, with three slated for 2009 - the Novotel Mumbai Juhu Beach, Mercure Bangalore and Ibis Pune.
Lincoln Harris, director of tour operator India Unbound, said the static rates had helped pricing. Wholesalers and tour operators now have more leverage at the bargaining table, he said.
“Because of the softer demand hotels don’t have so much sway over the industry, they have to be guided by demand,” Harris said. “It’s probably the first time in more than five years that rates have stayed the same.”
Rates had previously been increasing 10 to 15 per cent year on year, he added.