Huge losses in ITDC hotels

Barring a few, a majority of Indian Tourism Development Corporation (ITDC)-run hotels are running in losses, Rajya Sabha was told today.
ITDC runs fifteen hotels out of which five are not incurring losses in 2012-13, Tourism Minister K Chiranjeevi said in a written answer in the House.
While Ashoka hotel, the flagship hotel of ITDC, has incurred Rs 1027.44 lakh loss, Hotel Jaipur lost Rs 401.26 lakh in financial year 2012-13.
Samrat Hotel and Janpath Hotel in the national capital have, however, posted a profit of Rs 889.88 lakh and Rs 432.06 lakh respectively in the last fiscal.
Hotel Lake View Ashok in Bhopal and Hotel Pataliputra in Patna had also registered profit of Rs 104.93 lakh and Rs 144.09 lakh respectively.

Spurt in availability of rooms, high wage cost due to implementation of Sixth Pay Commission and weakening of global economy have contributed to the losses in ITDC operation, the Minister mentioned as reasons for the losses.
He said ITDC has initiated several steps to boost the profitability.
Carrying out renovation works in the hotels, launching e-marketing and aggressive marketing in the country as well as abroad through participation in major travel marts and food festivals are some of the steps taken to boost the profit.