Panic pricing won’t work for big hotels

We urge the stakeholders of the hospitality industry not to reduce their prices less than 5% of their original rates,” said Nirav Gandhi, Director of Express Group of Hotels and Executive Committee of FHRAI.

He was moderating a webinar organised by the industry body, The Federation of Hotel and Restaurant Associations of India, on ‘Survival to revival, restart and resume operations’.

Delna Jasoomoney, Associate VP-Travel industry Sales & Luxury Partnerships for Taj Hotels and Resorts, who was also present in the panel, said that the industry should not go for panic pricing crashing the rates. “Dropping the prices down won’t make a difference. Apart from offering our customers less price we should try to offer best value. We also need to be flexible with policies and cancellations,” she said.

Jasoomoney mentioned that IHCL has ensured that they keep the engagement with their customers very strong even during the crisis. According to her, there will be a pent up demand once things normalise. She also mentioned that most of the outbound travellers will now hesitate to fly abroad, thus opening up a big avenue for hoteliers to channelise those travellers into inbound travel.

Dropping the price down is not a viable option that big giants are looking for, but for individual or small chain hotels, it might be the only option left to cope with the dire situation.