Travellers opting for cheaper destinations now, hotels in Chennai are not doing peak business!!
Posted on: 28/Aug/2023 9:27:03 AM
The revenge tourism has led to the F & B business to grow well but the growth has declined by 10% to 15% now compared to last year. This has now become a huge point of concern for many. It is learnt that the occupancy levels in the hotels was around 65% to 75% mark and the hospitality industry has been witnessing a growth dip now. Instead of going to the foreign places, the travellers are preferring cheaper destinations now.
As a result, there is a downward trend now. This was mentioned by Mr. T. Natarajan, secretary of South India Hotels and Restaurants Association or SIHRA.He explained that the average room rate or ARR did not drop and the weekend destinations were showing traction. Information is that the occupancy levels in the hotels during the weekdays were about 50percent and the average was going up to 80% also.
Demand-supply mismatch:
In Chennai, there is now a demand-supply mismatch leading to many issues. When compared to other important cities like Mumbai, Bangalore and Delhi etc, this mismatch is witnessed more in Chennai.
The average room rate of ARR in chennai has been hovering around Rs 7000 to Rs 10000 in Chennai city. This was brought out by a senior professional from the hospitality industry. He shed light on how the ARR in other cities was Rs 1000 and going to even Rs 15000 also. Inspite of some improvement in the culture tourism after the Coronavirus pandemic, the domestic tourism hasn`t yet picked up.
