Beat Covid blues rush sets room prices racing

BHUBANESWAR :  For the upcoming holiday on January 26, Republic Day, a luxury villa of a hotel on the Puri-Konark Marine drive is priced at a whopping Rs 19,000 per night, while another in Bhubaneswar is even costlier at Rs 22,000 per night. The astronomical rates, notwithstanding, both the properties have 100 per cent (pc) occupancy on the day and the weekend thereafter.

If one goes by the occupancy charts of online travel and booking sites, the trend isn’t any different for mid-range and budget hotels or those offering bread and breakfast in the State. Although prices of hotel rooms, both luxury and budget, have risen significantly post Covid-19, the travellers aren’t complaining. After months of lockdown and ‘stay at home’ regime, the general mood seems to be to break free with a vengeance. The price attached is inconsequential.

Holiday destinations like Puri, Chilika, Gopalpur and Bhubaneswar are now witnessing 80 pc to 100 pc occupancy during weekends and 50 to 60 pc on weekdays with travellers mostly from within the State. “In fact, we have also seen people of Bhubaneswar booking hotels in the city itself to take a break from the 10-month-long lockdown life”, said JK Mohanty, Chairman, Hotel and Restaurant Association of Odisha (HRAO). According to the stakeholders in tourism and hospitality sectors, there has been a 30 pc to 40 pc hike in price of rooms in comparison to what hotels used to charge prior to the Covid-19 outbreak. 

“With Covid-19 restrictions eased, people are now stepping out largely for leisure travel. Hence, hotels of all categories are witnessing a spike in weekend bookings mostly from local travellers. So, even if a room in a luxury hotel is priced two times higher during the weekend, people who can afford it are going for it”, said Mohanty, who is also the CMD of Swosti Group.

Beat Covid blues rush sets room prices racing

According to sources in Mayfair properties at Puri and Gopalpur, the prices of rooms have risen by a minimum of 40 pc. “The pricing now mainly works as per the revenue management rate which is proportional to the market demand. On days when the demand is high, the rates will be higher. An average room which was earlier available for Rs 9,000 is now priced at Rs 14,000 plus taxes and on weekends, the price is a bit higher, ” explained an official of the Mayfair Hotels & Resorts.

As per the reports of the Tourism Department, by the end of 2017-18, Odisha had 1,864 category hotels (high -Rs 1,801 and above per night, middle -Rs 901 to Rs 1800, and low- up to Rs 900 per night spending groups) with around 38,558 rooms. Of them, six star hotels have 437 rooms with 910 beds. Besides, there are 13 hotels with star facilities with 878 rooms and 1,715 beds.

Hotels in the State reopened partially after three months of lockdown in June with a cap of 30 per cent on room capacity. They were allowed 100 per cent capacity from October. Stakeholders said ever since the hotels have opened full-fledgedly, there has been a growth of 50 pc to 60 pc in the industry. “If the industry grows at this rate, it will survive till the new tourism season begins in October 2021. However, we are hopeful for further growth as the vaccination drive has already started. After trains, flight operations resume operations completely in another six months, things will return to normal”, said Mohanty.