Financial Daily from THE HINDU group of publications
Tuesday, Dec 10, 2002
Financial Daily from THE HINDU group of publications Tuesday, Dec 10, 2002 |
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Industry & Economy
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Hotels Hotel sector revenue sharply down: Survey Our Bureau
NEW DELHI, Dec. 9 THE domestic hotel industry saw a decline of 23.7 per cent in income before fixed charges (IBFC) on a per available room basis. This has been indicated in a recently released annual country trends of the domestic hotel industry, which has been conducted by Pannell Kerr Forster Consultants (PKF). "IBFC for the industry now stands at 31.2 per cent of total revenue. In comparison to other regions, India was the worst affected, pummelled by global events following the incidents of September 11 and panic about war with Pakistan," the study shows. Industry occupancy fell from 61.1 per cent during financial year 2001 to 56.4 per cent during the same period in 2002. Besides, average achieved room rates fell by a further 6.8 per cent resulting in a decline of 16 per cent in room's yield or revenue per available room. In addition, the industry is actually incurring more costs to obtain business — room's division costs actually went up by 5.6 per cent. The survey indicates that this could be perhaps due to the variety of freebies now being offered. Further, the declining occupancy took its toll on food and beverage revenues as well. Food sales mostly held steady, declining only three per cent, thanks to non-resident sales while beverage revenues declined 12 per cent. The telephone department is increasingly marginalised in hotels with declining call charges and increasing use of mobile phones - telephone revenues on a per available room basis declined 24 per cent during financial year 2002. Besides, overall operated departments' revenue declined by 14.1 per cent.
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