5-7% decline in hotel bookings for New Year celebrations

According to a survey by ASSOCHAM Social Development Foundation, bookings received by star-rated hotels in metros have registered a decline of about 5-7 per cent due to demonetisation and the consequent cash crunch. The survey informed that many hotels had not revised rates of New Year packages and had in fact, lowered the rates by about 2-3 per cent; bundled various offers, promotions, deals and discounts on services in one package at a bargain price. The ASSOCHAM Social Development Foundation had interacted with about 50 star-rated hotels in Ahmedabad, Bengaluru, Chennai, Delhi-NCR, Hyderabad, Indore, Jaipur, Kolkata, Lucknow and Mumbai during the course of past midnight to ascertain how top hotels in metros are gearing up for annual New Year’s Eve parties. Simultaneously, the chamber representatives also interacted with about 250 youngsters to gauge how people in urban centres are planning to bid farewell to 2016 whereby most said they plan to usher in the New Year in a cost-effective way by opting to party indoors.  “New Year’s Eve is the perfect occasion especially for the youth to unwind and soak in the festivities with their friends and family, though with ever-growing per-capita incomes people do not mind indulging in some extravagance but cash crunch in wake of demonetisation seems to an impact on their plans this time,” said D.S. Rawat, Secretary General, ASSOCHAM. He further informed  that despite this being a good season for the hotel industry, many star-rated hotels seem to be reeling under the impact of demonetisation and are being forced to scale down their New Year’s Eve activities as they are not able to draw many people.