Hotel industry on recovery route in India
Fuelled by the rise in demand for hotel rooms from domestic travellers, the hotel tariff went up by 12 per cent in the first six months of this year in India. This has been revealed by the recent Hotel Price Index (HPI) report.
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India, the overall rate rose 12 per cent following a surge in demand from domestic travellers as overseas destinations became more expensive, the report said. For the first time in five years, travellers paid more for their hotel rooms during the first six months of 2012, in all parts of the world and globally average hotel prices rose by four per cent over the last year indicating the hotel industry is stag- ing recovery. Launched in 2004, the HPI looks at prices that people actually paid for their hotel rooms around the world. 46% 26% 25% 24% 19% 18% 14% 13% 13% 12% 12%
“The hotel industry bounced back in the first half of this year from a number of natural and political crises in 2011 and it is encouraging to see growth in the sector,”
David Roche, President, Hotels.com said. The first six months of 2012 have proved a promising start for most hotels. However, the second half of the year, with increasingly mixed economic signals, will be interesting to watch, he added.
With an average figure of 7,353 INR, Indian travellers were the 19th in the table of the biggest spenders abroad for the first half of 2012. The Top 10 biggest spending nations remained the same but there was much movement in the table. The Japanese spent the most away from home once again on 9,599 INR, followed by the Australians on 9,153 INR, moving up from third place to second, bumping the Swiss down to third place on 9,016 INR. The Chinese moved up one place to sixth, parting with an average 8,418 INR and the Brazilians climbed three places from tenth to seventh, paying 8,351 INR.
Indian travellers once again had the best eye for a bargain, being the nation, spending the least for a hotel room at home on an average 4,709 INR a night, followed by the Spanish on 4,884 INR and the Chinese on 4,974 INR. At the other end of the table, the top three held their places in the first half of 2012 with those from Switzerland paying the most when travelling domestically on 10,410 INR, followed by Norway on 9,572 INR and Singapore just behind on 9,551 INR. The Australians again moved up the table from seventh to fourth on 9,114 INR. The South Koreans moved into the Top 10 at No 6 on 7,962 INR. Foreign travel became more expensive for Indian travellers as the Rupee fell in value against many major currencies, particularly in the latter half of the period. Other factors also had an impact. For instance, areas that were facing serious political or natural upheavals in the first six months of 2011 recovered their equilibrium, leading to prices in areas such as the Middle East and Japan, returning to more normal levels. These factors also had a marked influence on the cost of a hotel room as prices increased in all but one of the destinations included in the HPI.