A relentless heatwave in Rajasthan has wreaked havoc on the state’s hospitality and tourism industry. Occupancies and room rates have plummeted to levels not seen in years, with smaller hotels bearing the brunt of the impact. The larger hotel chains have responded by slashing their rates by 75-80% in an attempt to fill their extensive room inventories, further exacerbating the challenges faced by smaller establishments.
Decline in Corporate and Family Travel
Historically, despite the high summer temperatures, Rajasthan has remained a popular destination for corporate meetings, incentive travel, and family vacations. The off-season summer months typically offered attractive deals, drawing visitors looking to capitalize on lower rates. However, this year presents a starkly different picture.
“The heatwave, coupled with media reports of casualties, has led to widespread cancellations and rescheduling of trips,” said Ranvijay Singh, Joint Secretary of the Hotels and Restaurants Association of Rajasthan (HRAR). Both occupancies and rates have plummeted since May, and the outlook for the current month is equally grim.
Occupancies Nosedive
Industry estimates indicate that occupancy rates in leading hotel chains have dropped to a mere 20-25%, compared to around 50% during the same period last year. Corporate travel and meetings, which usually 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 are also not traveling,” added Singh.
Visits from friends and family, often planned during summer vacations, have also dwindled, with many families choosing to postpone their trips due to the extreme temperatures.
Financial Distress Across the Sector
The economic impact on the hospitality sector is palpable. Many hotels have been forced to send their staff on long leaves to cope with the financial strain. “Hotels, resorts, and restaurants are all experiencing significant financial distress. The industry is adopting various measures to reduce operational costs,” said Singh.
Smaller hotels have been particularly hard hit, with some reporting days without a single booking. The aggressive rate cuts by larger hotel chains have left budget and smaller hotels struggling to attract guests. “Whatever footfall the industry is getting is going to the star hotels, leaving the budget and smaller hotels in dire straits,” Singh noted.
Looking Ahead
As Rajasthan navigates through this challenging period, the industry is looking to the upcoming monsoon season with hope. The arrival of rains could bring some relief from the scorching heat and potentially revive travel and tourism in the state. However, the extent of the recovery remains uncertain as the hospitality sector grapples with the severe impact of the heatwave.