Hotels, airlines, liquour firms and state tax revenue set to look up on rising New Year sale: ASSOCHAM

Hotels in the five star & three star categories along with the airlines have jacked up their tariff this week as the trend for the well-off and even middle class families to go on vacation during the year-end has only increased year after year, reveals the ASSOCHAM paper.

An ASSOCHAM report indicate that hotels in major tourist destinations and big metropolitan cities have increased room rates by 40-55 per cent while in some of the sought after locations like Goa, the room rental this week is double or three times the rates in September-October. Star rated hotels in the metros have upped the prices in their hotels and hiked the room tariffs by nearly 45 per cent to cash in on the festive mood of party revellers.

Likewise flights on the Delhi-Mumbai, Mumbai-Goa, Delhi-Chennai, Delhi - Trivandrum, Delhi-Kolkata, Mumbai-Kolkata and towards other southern locations have become expensive by more 40 per cent as compared to the rates in September-October, a quick check by the ASSOCHAM researchers noted.

Occupancy in places like Goa, Trivandrum are about 100 per cent while even in major cities, the occupancy in hotels is well past 70-80 per cent during the mid-week, while on the December 31 and January 1 right up to the week-end, it is above 85-90 per cent, giving the hotels chance to make the best of new year season.

The source for chambers findings is ASSOCHAM hospitality industry has large number of members who briefed it of latest emerging trends available with them for New-Year's Eve celebrations.

According to them, the youngsters would like to spend a good amount for new year's celebrations as a result of economic boom that the services sectors has been experiencing and their owners have already made provisions for yearly leave, particularly beginning Christmas, said Mr. D S Rawat, Secretary General, ASSOCHAM.

New Year celebrations are taking new formats with more and more families willing to splurge. Tech trend is more among the well -paid professionals in the IT, private sector banks etc, ASSOCHAM General Secretary Mr D S Rawat commented.

Along with the hotels and airlines, breweries are reporting quick sales, more so in northern India where mercury has dipped and the demand for hard drinks is on not only for the manufacturers, retailers but also the state government exchequers. The liquor is highly taxed, said Mr. Rawat.

Further the hotel segment can be divided into 3 sub-segments namely Luxury, Business and Leisure. The growth in this segment indicates rising demand in different segments.

The increase in pricing vis-a-vis the previous year even in eating out is between 30 and 35 per cent. It has been noticed that every year the increase in footfalls during New Year increases by 35-40 per cent. This year too, we expect to see a good crowd as the economy is doing better, adds the ASSOCHAM findings.

New Year revellers in Delhi have planned to spend Rs 25,000 -Rs.30,000/- per couple to five star hotel to enjoy a meal-cum-entertainment package , those partying at the 4 and 3 star hotel have dished out Rs.15,000-20,000 per couple per night.

This, subsequently, has inevitably led to not only rates being hiked by 30-35 per cent for the New Year festivity, but also for rooms and food and beverage packages for the forthcoming months.

Delhi alone is witnessing a growth nearly 35-45% in occupancy levels this December while room rates have moderated 30-35%. Similarly, Bangalore, Chennai and Hyderabad have also recorded a growth in occupancy during the New Year. On an average, Bangalore's occupancy will increase by 25-30% this year, Chennai will jump by 20-25% and Hyderabad, a 10-15%. City hotels not only cut rates but offer festive season packages to boost occupancy levels during the holiday season for December-January.

Most of the major hotels' representatives said that they are providing attractive offers, packages for couples which includes food, liquor packages along with an accommodation to make their stay pleasant and comfortable so that they can stay back after the party.

Besides, many respondents said that they have made special arrangements for couples with kids and they have dedicated hotel staff who will take care of kids and are ready with different arrangements like a dedicated kids' zone so that couples can enjoy and ring in the new year without worrying about kids. Over half of respondents cited the soaring inflation as the key reason they have increased the tariffs but are providing a plethora of special packages.

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