Delhi-NCR hotels expect better business as weather cools | Exclusive
Delhi-NCR hotels expect better business as weather cools | Exclusive
With the weather conditions becoming relatively cooler due to the onset of the monsoon, the Delhi-NCR hotels are expecting a pick up in business, which was hit hard by searing heat in the past couple of months.
The national capital and its adjoining cities battled intense heat in May and June with temperatures crossing 45 degrees Celsius on many occasions.
Several hotels witnessed a drop of up to 20% in business across different segments, including leisure, social events, and meetings, incentives, conferences and exhibitions (MICE), an industry expert, who did not wish to be named, told India Today. For some hotels, the occupancy rate in May and June slipped owing to a lower influx of tourists.
Andaz Delhi General Manager Hardip Marwah said that all segments saw a slight dip in business due to hot weather conditions. Although room bookings at the hotel in May and June were marginally higher than the same months last year, he said that there was a drop in overall business compared to the first four months of 2024.
"The leisure travel segment has been the most affected by the hot weather conditions. We have observed a 15-20% reduction in tourist bookings during May and June compared to the same months last year. Outdoor events and activities have also seen a decline, impacting our banquet and events business to some extent," said Vijay Bhalla, General Manager, The Lalit New Delhi.
DoubleTree by Hilton Gurugram Baani Square General Manager Jai Chugh said that the retail and MICE segments were primarily hit due to the extreme weather, resulting in a degrowth of 5%.
The intense heat impacted the queries for outdoor events in May and June at Crowne Plaza Greater Noida, which is driven by the MICE segment. The hotel's General Manager Sharad K Upadhyay said that this, in turn, influenced the food and beverages business and other aspects connected with hosting outdoor events, be it social or corporate.
However, the corporate travel segment did relatively better despite the heat as companies continued their operations and employees travelled for work-related commitments. Even the negotiated segment, which refers to long-term contracts with corporates, did well.
Pullman and Novotel New Delhi Aerocity Cluster General Manager Vineet Mishra said that the hospitality industry, traditionally, experiences a seasonal dip in business during May and June. But both hotels, on the contrary, saw a stable increase in room occupancy due to demand from MICE and corporate events, he observed.
With rain bringing in some respite from the intense heat, hotel heads expect business to return to normalcy with improved demand across segments.
"We anticipate that business will return to normal levels by July, as the weather starts changing. This period typically sees an influx of tourists and an increase in events and corporate activities, which should help us recover from the slower summer months," said The Lalit New Delhi's Bhalla.
Crowne Plaza Greater Noida's Upadhyay said that the hotel is already seeing a change in the market as the weather has started improving. "In the upcoming months, we see a lot of long weekends approaching that will kickstart the process of business gaining momentum, followed by the immediate arrival of wedding and holiday seasons, which will accelerate the business," he added.
Marwah of Andaz Delhi also said that there are signs of improvement in bookings from July, with a further boost expected in the coming months.
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