NEW DELHI, Oct 23, 2000 (AsiaPulse) -- The slew of new hotels coming up across the country is likely to push down average room rates in metros in the current peak season and it might affect occupancies which have been on an upswing in the first half of fiscal 2000-01, a HVS International survey has said.
We anticipate a further decline in most average rates across various cities ... fuelled by the increased hotel supply, and also the fact that quality mid-market and budget hotels are opening up, hotel consultants HVS International's managing director Manav Thadani said.
The final impact of occupancy levels is likely to be determined by the impact of new supply numbering about 99 hotels, Thadani said adding, however, that occupancies might remain stable in most cities and perhaps even improve in some commercial cities.
We can take some encouragement from the fact that the ICE sectors along with the insurance sector are poised to take off and are likely to generate additional room night demand for hotels, Hotels in India-Trends and Opportunities survey said.
Pointing that rise in occupancy in the first half of 2000-01 had taken place during the traditional lean period of the summer months, Thadani said another positive development is the increased air seat capacity of airlines with Air France and Swissair increasing their flight frequency to India.
Additionally, United Airlines is shortly making a comeback. Other airlines like Delta, Lufthansa, British Airways, SAS, Austrian and Virgin are all shortly expected to increase capacity to the major cities in India, he said.
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