Severe heatwave in Rajasthan has significantly impacted the hospitality and tourism industry with occupancies and room rates crashing to worst levels witnessed in years. In fact, the blow has been severe for smaller hotels as their bigger counterparts have reduced rates to 75-80 per cent to fill their large inventory of rooms.
In previous years, despite high temperatures, Rajasthan remained a preferred destination for corporate meetings, incentive travel, and family visits. The off-season summer months usually offered attractive deals, drawing visitors who could benefit from lower rates. This year, however, the scenario is starkly different.
“The heatwave along with the media reports of casualties have led to widespread cancellations and rescheduling of trips,” said Ranvijay Singh, joint secretary of Hotels and Restaurants Association of Rajasthan (HRAR).
Many travellers are already choosing these alternative destinations, resulting in an increase in footfall here too. “In retreats such as Kausani, occupancies have risen by 10 per cent . Our property in Ramgarh has achieved an average occupancy rate of 65 per cent , while Bhimtal has been in high demand with an 80 per cent occupancy rate. Similarly, the recently launched property in Naukuchiatal is experiencing a 60 per cent occupancy rate. This surge in demand is largely due to the soaring temperatures across north India,” shares Shahzad Aslam, Head of Sales, Leisure Hotels Group.
He said both occupancies and rates plummeted in May and the current month does not look brighter. Industry estimates that occupancies in the properties of leading chains nosedived to 20-25 per cent, which was about 50 per cent last year during this time. “Corporate travel and meetings, which typically take advantage of off-season discounts, have seen significant rescheduling. Businesses are hesitant to send their employees to Rajasthan right now, even for important meetings. School student groups too are not travelling,” added Singh.
Visits from friends and family, often planned during summer vacations, have also dwindled. Families are choosing to postpone their trips, fearing the extreme temperatures.
The economic impact is palpable with many hotels choosing to send their staff on long leaves. “Hotels, resorts and restaurants are all experiencing financial distress. The industry is adopting various measures to reduce operational costs,” said Singh.In fact, some smaller hotels did not see a single booking on some days, said the industry. This is also due to the bigger hotel chain hotels slashing their room rates by 75-80 per cent, which is almost the same rates that smaller ones used to charge. “Whatever footfall the industry is getting is going to the star hotels leaving the budget and smaller hotels in doldrums,” said Singh. As Rajasthan navigates through this challenging period, all eyes are on the monsoon.
