Post demonetisation, hotels brace for lower occupancy

Corporates form biggest chunk of bookings for hotels operating in metro and tier-I, tier-II cities

Hotel companies are preparing for a possible decline in occupancy in the next few months as declining economic activity post demonetisation could impact business and leisure travel in the country. Companies have initiated cost management measures like reduction of inventory for consumables and better staff management practices. There may be some impact on new hiring too.

Hotels in most cities had seen an improved occupancy level in 2016 and tariffs were also firm but companies apprehend that the pace of new bookings may slow down this quarter and impact revenues. Hotels are reacting to the changed business environment. "We have