Nov 25, 2007

Mumbai Hotels are Full. No Vacancy!

Stop the presses. The hotel rooms in Mumbai are fully booked. Corporate travellers and tourists must make alternate arrangements. The five-star hotels have been booked through March and the rest have reported occupancy levels at 90%.

Why is this happening.

1. December through February is a marriage season in India.

2. Hotels have been offering "pamper yourself" weekends. Here your whole family can check-in, enjoy the pool, the gym, breakfast, and the beach. Increasing household income and stressful work weeks means these packages are convenient and attractive to more and more local households.

3. Increased business travel.

So, all luxury chains have increased the tariff by 25-40%. Forget the deals. The next step for this would be a squeeze on rental spaces. Homeowners would be able to make a lot more money by letting the tourists rent their homes for short stays instead of getting into a longer arrangements with the renters.