As more people get detected with the highly contagious Omicron variant of Covid-19, hoteliers are preparing to welcome the holiday season with bated breath to avoid a business wipe out-like situation of last year due to the virus.
Additional restrictions
India has already acknowledged two dozen cases of the new variant, which, according to a study in Japan, is four times more transmissible than the Delta variant. So far neither the Centre nor any of the States have slapped any additional restrictions due to the new variant. December and January are traditionally considered to be the best months for the hotel industry across the world and in India. While foreign tourist numbers are expected to remain negligible, hoteliers are banking on domestic tourists to spruce up business.
Nikhil Sharma, Regional Director, Eurasia, Wyndham Hotels and Resorts, said: “It is still early days to see what impact this new variant will have on the industry, and we are not currently seeing a surge in booking cancellations. As we continue to navigate through these evolving times, the health and safety of our guests and our team members continues to be our top priority.”
Wyndham Hotels, the US-based hotel chain, which has brands such as Ramada, Days Inn and Howard Johnson, has a portfolio of more than 40 hotels in India. Better vaccination coverage (nearly 50 crore are fully vaccinated according to CoWIN) and poor mortality rate of the Omicron variant have given hope to hoteliers, who were forced to close properties last year as the flow of guests dried up.
SP Jain, Managing Director, Pride Group of Hotels, said: “Initially there was the fear of the Omicron variant and people did go into the wait and watch mode. But as it turns out, the new variant is not as lethal as thought earlier. So far, we have not got any cancellation and neither we are expecting much impact on the business.”
Business travel
According to market intelligence provider HVS, domestic leisure travel growth, significant pent-up demand, and the resumption of business travel in the country are contributing to the strong revival. Weddings and social events are also driving demand in certain markets.
Hotel and resort properties in Tier 1 and Tier II cities have reported a strong uptick in wedding and social events in the last few weeks. These events, which were to be held last year, were pushed back to due lockdown restrictions imposed by States on social gatherings.
“There is a tremendous demand for weddings and hotels are running out of inventory. In line with the jump in demand we have increased the room rates as well. Room rates are slightly shy of pre-Covid levels, but are definitely 15-25 per cent higher than recent months depending on the property location,” Jain added.
Revenue loss
During FY21, the hotel and hospitality industry, which was the first and the worst-affected sector due to the pandemic, is estimated to have recorded a revenue loss of ₹90,000 crore.
Hoteliers have made a correction of an estimated 2 million jobs due to the pandemic. Despite the revival in business these jobs are yet to come back into the system.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.