Hotels offer deep discounts

Coimbatore: Monsoon is here and it’s raining discounts in city hotels. While star and business hotels are giving discounts between 25% to 40%, others are offering up to 60% discount.
Hotel managements say discounts are common during the monsoon season since it is a dull season for travel. But according to some, the economic slowdown has brought down occupancy rates, forcing them to lure guests with steep discounts. Travel agents say even enquiries are coming down.
A search on travel portals MakeMyTrip, Agoda and Booking.com shows rooms that were priced between Rs 3,800 to Rs 4,000 available for Rs 2,500. Rooms priced more than Rs 5,000 are available for Rs 4,000 and lesser.
Travel agents say this is because occupancy rates in hotels have fallen to 55% from the usual 70%. “Hotel occupancy rates, which used to be around 65% to 70% and even touch 80%, have fallen to 55% to 60% in most hotels,” says VC Krishnaraj, president of the Travel Agents’ Association of Coimbatore.
Coimbatore has an inventory of about 2,500 rooms attached to star brands. However, hardly 700-800 rooms come under the category of leisure hotels.
Most star brands like ITC and The Park have business hotels in the city. Hoteliers say many corporate companies, who form their clientèle during off tourist seasons, have adopted cost-cutting measures, bringing down the number of business travellers.
Industry experts say even those corporate travellers, who visit the city, have chosen business class hotels instead of leisure hotels, because companies are looking to cut costs. “We are seeing a 15% fall in occupancy rates,” said a senior manager of a star hotel on Avinashi Road.
On the other hand, managers of two business hotels in and around Puliakulam Road say their occupancy rates in July and August matched the last year’s figures. “In the current economic scenario, maybe corporates are opting for lower priced but good branded hotels compared to more luxurious stays to bring down costs,” said the manager of a two-year-old business hotel.
The number of tourists, who are far and few during the season, has also come down marginally. “The number of enquiries in general for travel seems to have come down,” adds Krishnaraj.