Hotels fear cancellations

8220;I think we can expect tariffs to fall by at least another 5-10 per cent almost immediately,8221; says Harish Sood, General Secretary, Federation of Hotel 038; Restaurant Associations of India. Nearly 65 per cent of hotel rooms are used by business travellers. Mumbai and Delhi together offer about 30,000 rooms.

8220;Capacity utilisation during winter months is normally 100 per cent,8221; explains Sood, 8220;Now, due to the slowdown it was about 80 per cent this year. But with the attack on Mumbai, hotel capacity will nosedive. Domestic travel in India was driving occupancy but for the next few months I think we8217;ll see large-scale cancellations of conferences and reduction in business travel.8221; Carlson Group Executive Vice-President K B Kachru said, 8220;Security has always been a major factor in tourism. A reaction is bound to come and a general tourist would be apprehensive.8221;