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Tourism boom creates imbalance in hotel demand, supply
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            Nov 22, 2004 12:43 IST  
India’s tourism industry is booming like never before this season, with hotel rooms at several major destinations, including the national capital, going for hefty premiums owing to supply constraints.

India’s tourism industry is booming like never before this season, with hotel rooms at several major destinations, including the national capital, going for hefty premiums owing to supply constraints.
The country in fact, hopes to finally cross the three million mark this year with inflows of 2.6 million tourists till October. In volume, the growth in tourist traffic this year is over 25 percent and in value around 40 percent, said a tourism ministry official.
The travel industry has reported business growth of anywhere between 20-70 percent this year following an increase in airlines’ capacity and consequential growth in tourist traffic.
Thus, for those who like to travel at a whim, this is certainly not the time to do so, warn industry bigwigs.


The imbalance in demand and supply is such that tourists are being turned away from hotels in some destinations, the tourism ministry official said.

We have received complaints of customers being bumped off despite confirmed bookings. And wherever the image of the country is affected, we have assured the travel trade industry that we would intervene, the official told IANS.

Last week, the ministry was forced to intervene as a 26-member group from Australia was informed at the eleventh hour that there was no confirmed booking for it at a five-star heritage hotel in Jodhpur.

The group had received confirmation earlier.

It was only after the intervention of the tourism ministry at the request of their Australian counterpart that the hotel in Jodhpur gave back the bookings, said Subhash Goyal, president of the Indian Association of Tour Operators (IATO).

But the group was accommodated only for a day, even though it had confirmation for three days, he said, adding that hotel rooms were being let out at hefty premiums in several places.

In fact, at some destinations like Jaipur and Jodhpur, tourists are being charged above published tariffs. We have received several complaints and have had to intervene in many cases, Goyal told IANS.

Major travel houses corroborated that hoteliers are taking advantage of the heavy rush of tourists to make affordable rooms unavailable or to refuse bookings.

We did have to turn away some of the overseas clients as the special category of rooms they were seeking were not available. In some cases, the clients agreed to lower ratings, said T. N. Bhat, head of inbound travel at Mercury Travel.

We are not geared for such rush. The problem of hotel rooms is more in places like Delhi and Rajasthan. Kerala is better equipped to handle tourists of all classes, unlike the northern region where many three star hotels are not up to the mark, he said.

Along with higher foreign tourist arrivals, the healthy economic growth is resulting in a rise in corporate travel, said Madan Kak, TCI India’s area manager for inbound travel (north India).

With the boom in business, hotels have resorted to yield management to maximise revenue. They are trying to push higher priced rooms that otherwise had less demand. Many have upgraded facilities and are charging more.

Tour operators said reports of overlapping bookings were not uncommon, but the hotel industry refuted charges of such malpractices among classified hotels.

As far as I know, no good hotelier would cancel confirmed bookings or charge beyond published tariff released in October, said Deepak Sharma, secretary general of the Hotels and Restaurants Association of India, northern chapter.

He said good hotel rooms were difficult to find, particularly in Jaipur, Jodhpur and Delhi, where the India International Trade Fair is in full swing.

This is the peak season. After two years, we are really having a good business with over 80 percent bookings in all the higher category hotels in the plains, said Sharma.

In the hill regions though, the story is entirely different.

--Indo-Asian News Service
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