§  ?ver?ll devel?pment ?f the c?mp?ny ?re s?me ?f the m?dels br?nds ?re empl?ying t? ret?in t?lent ?t their h?tels. ? test?ment t? these ch?nging times  is the repe?ted inclusi?n ?f m?j?r h?tel br?nds in the ‘T?p 100 pl?ces t? W?rk’ surveys in the p?st few ye?rs.

§  ?n?ther n?t?ble trend is the surge ?f h?tel ?ggreg?t?rs th?t  is beginning t? h?ve ?n effect ?n the br?nded h?tels in the budget ?nd ec?n?my sp?ce, fuelled prim?rily by the pricing str?tegy being empl?yed by the f?rmer. ?Y? R??ms ?nd ?irbnb, c?upled with ? few ?ther pl?yers wh? ?re ?ls? r?mping up, it  is likely th?t ?ver 1,00,000 r??ms exist in this new l?dging dimensi?n ?lre?dy. The c?sc?ding effects ?f their ?lm?st dr?stic ?ver?ge r?te str?tegy further c?t?lyses the r?te pr?blem.

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Imp?ct ?f G?vernment
P?licies-

 

Just ? few m?nths b?ck, the GST c?uncil
pr?vided ? slight sigh ?f relief t? mid- m?rket ?nd luxury h?tels by st?ting th?t
?nly r??ms with ? t?riff ?f Rs.7,500 ?nd m?re, ?nd n?t Rs.5,000 ?s decl?red e?rlier,
w?uld h?ve ? GST ?f 28%. H?tel r??ms with ? t?riff between Rs. 2,500 t? Rs. 7,500
w?uld h?ve ? GST ?f 18%.

The GST ?n r??m t?riffs pr?ves t?
be ? d?uble-edged sw?rd; bef?re GST ? h?tel r??m with ? t?riff ?f Rs. 5000 w?uld
?ttr?ct ?b?ut t?xes ?m?unting t? ?b?ut 20%, theref?re, the s?me r??m w?uld be
priced ?t Rs. 6000 bef?re GST ?nd Rs. 5900 ?fter GST. ?n the flip side ? r??m with
? t?riff ?f Rs. 7500 with t?xes w?uld be priced ?t Rs. 9000 bef?re GST ?nd Rs.
9600 ?fter GST. it will ?nly be l?gic?l if the h?telier fixes the price ?t Rs.
7499 s? th?t the fin?l ?m?unt t? the cust?mer will be ?r?und Rs. 8850 ?s it f?lls
under the 18% t?x sl?b.

 

Luxury h?tels h?ve seen ? dr?p in
?ccup?ncy in the p?st few m?nths since there w?s ? signific?nt incre?se in their
pricing, but f?r the ?ther h?tels, it w?s pretty much be w?rk ?s usu?l, ?p?rt
fr?m just d?uble checking th?t the GST n?rms ?re being f?ll?wed ?ccur?tely.