Hotels line up discounts to woo guests

Travel agents say if you are planning to go on a holiday or on business, first check out all hotels in the destination and talk to a travel agent about the discounts offered by these hotels. And don’t forget to check on the internet. Many a times, a walk-in guest has to pay the published rack rates even as the guest next door has got over 50 per cent discount through a travel agent or under a discount plan (that is, a package deal).

Sudhir Sahi of International Travel House, a subsidiary of ITC Ltd says: “Corporate discounts are done on basis of the number of buyers. Many corporates like the General Motors go straight away to hotels and tie-up for their deals. As against the printed tariffs, corporates are able to gather discounts over 50 per cent now.” And Vikram Dhawan of Thomas Cook India adds: “In some cases, for a large corporate client, the discounts at times may even go up to 70 per cent.”

The room tariff has also come down as the falling room occupancy was worrying the hotel companies — especially during the lean monsoon months. Besides, most hotels in Mumbai have gone on expansion and in the next two years more than 2,000 more rooms would be added. In this backdrop, the room rates are expected to fall further as guest are having more choice thus breaking the duopoly of Taj or Oberoi. The average rates in a five star hotel in Mumbai is now hovering at Rs 2,700 a night as compared to as high as Rs 8,000 charged by Taj or Oberoi till recently.

General Motors’ vice-president (corporate affairs) P. Balendran said: “In India, we have a tie-up with ITC Sheraton Group and across the world with Marriott and Crowne Plaza. While the usual discounts range between 35-40 per cent, it can go up to 50 per cent in some cases. And last time when I was in the US, I was able to get room at $70 by just bidding for it on the hotel site when the rates were around $260,” he added.

And today, frequent travellers are understood to bargain while staying in the hotel itself—that is you pay lesser and lesser when you stay more. But if you feel the discounts are not up to that mark, you can go in for package deals offered by various hotels and resorts, travel agents or even ones you can bid for on the net.

Adds Vishal Sood, director (sales and marketing) of Crowne Plaza Surya, Delhi: “Business has been bad for this sector for sometime now… and the discounts being offered have gone up to 60 per cent on the rack rate. Most city hotels have moved towards offering packaged deals with some discounts on food & beverages, spa/sauna/gym use. Also the idea of a partner hotel with some airline is fast catching up where further discounts are offered.”

Sahi of International Travel House further says: “The price discounts, free night stay or the contracted corporate stays are basically market-driven initiatives. If you look at us, we have gone ahead to offer 30 per cent discounts on car rentals in package deals generally coming with over 35 per cent discount and add-on benefits.”

Analysts say the recent air fare rates will help the industry as more domestic travellers would be encouraged to go for a holiday. With hotel average occupancy rates (AOR) hovering at 50 per cent, this move towards lowered air-fare is expected to help raise AORs between August and October, say analysts.