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Journalism of Courage
The first ever profit and loss-based survey of the Indian hotel industry reveals a drop in hotel occupancy from 52.2 per cent in 1997-98 to 49.7 per cent in 1998-99. Conducted by Pannell Kerr Forster Consultants PKF, the study included all major hotel chains in the country as well as quality independent hotels.
The survey found a 2.7 per cent rise in the average room rates during the same period. Revenues, on the other hand, dipped by 2 per cent during 1998-99, as compared to the previous financial year. In spite of falling revenues, the Indian hotel industry showed an inability to manage departmental operating expenses such as rooms, food and beverages, telephone etc., with these expenses rising 10.2 per cent during the period. Globally, India ranks third from bottom on level of occupancy.
