Looming fears of an economic slowdown and budgetaryconstraints are driving corporate houses to bargain hard with hotelmajorsfor lower room tariff, industry officials said today.
As a result, the hospitality industry, besieged by spirallingcosts,slowdown in corporate travel on the back of rising airfare, andstagnantoccupancy levels are buckling under pressure.
"There is a pressure on the average room rate. Companies aretighteningtheir belt and cutting down travel. Hotels may not officially announcea ratecut but negotiated rates are likely to come down drastically," aseniorofficial of The Park Hotels told NewsWire18 on condition of anonymity. On their part, hotels are trying hard to hold on to their rackrates (thepublished full price for which hotel rooms are sold) at c
As a result, the hospitality industry, besieged by spirallingcosts,slowdown in corporate travel on the back of rising airfare, andstagnantoccupancy levels are buckling under pressure.
"There is a pressure on the average room rate. Companies aretighteningtheir belt and cutting down travel. Hotels may not officially announcea ratecut but negotiated rates are likely to come down drastically," aseniorofficial of The Park Hotels told NewsWire18 on condition of anonymity. On their part, hotels are trying hard to hold on to their rackrates (thepublished full price for which hotel rooms are sold) at c
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