Goan hotels count on discounts to woo back tourists

The terror attacks in Mumbai have forced Goan hotels to offer steep discounts during its peak season. The upmarket hotels such as the Taj are offering a discount of Rs 2,000 on the rack rate. The rebate is even higher at Rs 3,000 for three-star hotels.

“There was a frenzied cancellation soon after the terror attacks in Mumbai. We have no other option but to offer discounts,” a spokesperson of a leading hotel chain told ET asking not to be quoted. Senior officials at Indian Hotels Company, which runs the Taj brand of hotels, in Goa confirmed the development. They said the reduction was up to $52 on the rack rate.

Another leading American hotel brand dropped the room tariff from Rs 12,000 to Rs 9,000 a night. The 3-star hotels in the state have reduced prices by Rs 2,500-3,000 a night to attract more tourists. These rates are inclusive of offers like free airport transfers and breakfast facilities. All offers, the hoteliers said, are market-driven and prices have been “corrected” based on the sagging demand.

The terror attacks have hit the travel and tourism industry hard. Prior the attacks, the global meltdown had steered away at least 20% foreign travellers. The terror attacks have further increased the cancellations by 10%.

The industry is facing a crisis as room occupancies have shrunk to almost half in September this year as compared to the same period last year. Hotels are now hoping that domestic travellers will help them sustain through the tough period.

The industry is now hoping that the Christmas will bring them some cheers. “The current discounts are offered to attract tourists. We may revise the rates based if the demand increases,” a senior marketing executive of a beach side resort told ET.

Hotels in Goa have recently introduced additional security measures and hope these measures along with the discounts would be able to arrest cancellations.