Peak rate? What's that?

Updated on: 02 April,2009 09:05 AM IST |
Lavanya Srinivasan |

Hoteliers are offering cheaper rooms to beat recession, so cash in on the year of the deal

Hoteliers are offering cheaper rooms to beat recession, so cash in on the year of the deal

When the going gets tough, the tough have a sale. That's why hotels are giving up peak rates this holiday season and offering discounts instead.

Faced with a global recession, airlines and hotels alike are wooing customers with packages and deals. Expect rooms to be cheaper by 25 per cent due to the Mumbai terror attack and revised luxury tax rates.

Tough timesu00a0

Hotel giants such as the Taj and Oberoi are trying very hard to improve occupancy. "We have seen a 10 per cent fall in average room rates due to the slowdown, and we have further discounted the fares just for the holiday season," says V V Giri, general manager, The Park.

Most five-star hotels in Bangalore are trying to get spending customers to spend more. For instance, if you opt for a spa package, you are promised whopping discounts on the next treatment. Hoteliers are hoping that the move will put things back on track and Abhay R, general manager ITC Sheraton, expects at least "a 30 per cent rise in occupancy levels this time".

There are other plans to shore up business. Like giving special attention to the food and beverage segment, bringing out a summer menu and including all-time favourites, said Abhay.

This is the first year-on-year drop in hotel room prices in the Asia Pacific region since 2004.

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