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Hotels across the city will not hike tariffs in the peak season October to March since rooms are going empty anyway
 
Every year, to prevent kids vegetating before the TV during the Diwali holidays, families ensure they book a nice room in a nice hotel and vegetate there.
 
The only hitch, October to March is high season and hotel rates go up by at least 20 per cent. Except this year.

All hotels in Mumbai, across the price barometer, will not hike their rates. This means guests pay off-season rates during peak season.

Holiday In: Hoteliers in the city say they cannot afford to hike rates though it will affect profitability by approximately 30 per cent because it demand is low due to recession, terror attacks, the swine flu scare and the recently concluded Jet strike.

Hoteliers in the city say they cannot afford to hike rates though it will affect profitability by approximately 30 per cent because it demand is low due to recession, terror attacks, the swine flu scare and the recently concluded Jet strike.

Said S P Jain, president, Hotel and Restaurant Association (Western India), "Foreigners are giving Mumbai a skip and the travel industry is also pressuring us to reduce room rates.

And we have to oblige. As of now, 90 per cent of hotels in the city will not hike their rates."

Jain added that hotels in Pune and Bangalore too have decided not to change room tariff. Foreign tourists account for two-thirds of a hotel's annual revenue.

Average room rates in five-star hotels range from Rs 5,000 to 10,000 a night for a basic AC room.  As of now, room occupancy at Mumbai's leading hotels is 60 to 65 per cent as compared to last year's 85 per cent.

The five-day standoff between Jet Airways management and the pilots came as an unexpected blow to the hospitality industry. "Out of 60 rooms that were booked, 15 to 20 guests cancelled plans after Jet pilots went on strike.

The hotel industry is already in a bad shape and the airline strike has added to our woes," said Rishi Puri, group general manager of the Ramada Powai Hotel. "We will not hike rates this season as we don't want to deter tourists," he added.

Wait and watch

Other hotels are undecided. "We will wait and watch. We will take a call on the room rates depending on the occupancy," said Pankaj Sampat, general manager, Taj President Hotel, Colaba.

Said a spokesperson from ITC Maratha hotel, Andheri, "We are expecting good business from November so we will hike rates. South Mumbai hotels may face low occupancy as compared to hotels in the suburbs."

Patrons are not complaining about the industry's decision. Meera Chabria (28), a resident of Khar, said, "I want to book a room at a five-star hotel for a friend in November, but was apprehensive as room rates are exorbitant during winter. But, if the tariff is affordable, I may book the room for two days."

Other Measures

The Oberoi Hotel at Nariman Point and The Taj Mahal Palace and Tower at Colaba, which were targets of the
26/11 terror attacks, appealed for a concession from the state excise department earlier this year to cope with the losses.

Both five-star hotels wanted exemption from renewal of the FL-III licenses (permit room license) for 2009-2010.

60 to 65

That's the room occupancy at Mumbai's leading hotels this year, down from 85 per cent last year