Hotel tariffs in Mumbai, which saw the second highest decline of 42 per cent in the first half, are however expected to firm up by around 10 per cent after December.
A research report issued by The Hotel Price Index, which examined rates for January to June 2009, revealed that prices globally are on average lower than they were five years ago. “Prices for hotels in Mumbai registered the second highest decline of 42 per cent as the terrorist attack of November 2008 continued to deter tourists, while business travel to the city also dropped due to the economic downturn. Hotel prices in New Delhi also declined sharply by 31 per cent,” said David Roche, president, Hotels.com Worldwide.
Industry officials say that the prices are slowly picking up in the Mumbai market with an increase in demand.
“The demand is gradually increasing, and as a result, prices are expected to go up by 10 per cent after December. In the winters, there is a demand for marriages as well as conferences from corporate houses, which will push the prices further,” Satyen Jain, chief executive officer, The Pride Hotels said.
He also said that till November 2008 the rates had reached a peak of Rs 16,000 to Rs 18,000 for a five star deluxe room. But after the impact of global economic downturn, rates declined by 10 per cent and after 26/11 attack, prices dropped drastically by a further 10-15 per cent in Mumbai.
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