Hotel tariffs in Delhi, Mumbai, Goa, Jaipur and Kerala are likely to nose-dive. Federation of Hotel and Restaurant Association of India (FHRAI) says that hotels across the board are likely to see a 20% cut in room rates. Those hotels which increased their fares in October for the peak season, are now reported to be reverting to last year's room rents.
In Delhi, 5-star hotel tariffs are being quoted at just Rs. 8,000 to Rs. 18,000, down from the Rs. 12,000 to Rs. 24,000 range which existed this time last year. Discounts at mid-range hotels can be bigger.
Delhi-based The Claridges Hotels and Resorts group has decided to introduce a "Global Meltdown Tariff" to sustain business. The hotel has revised current rates downward by 25%. A consultancy firm adds that highend leisure destinations will suffer a decline of 15%-20%. This will include famous tourist spots like Goa, Jaipur and Kerala.
Tour operators are already troubled by the huge cancellations coming in from Mumbai. Mumbai happens to be a major entry point for foreign tourists coming into India and after the terror strikes on 26/11, many cancellations have been reported.
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