CHENNAI: Low demand due to the pandemic has left room tariff in star hotels in the city lower than that in other cities.
Industry sources said this is going to be an advantage at a time when travel or staycations may resume as the state government has relaxed restrictions.
Top-rated stays range from Rs 2,800 to Rs 7,400 a night in the city, with a majority of the hotels charging a maximum Rs 3,500.
“Tariff is low in Chennai as commercial operations are low now.
Rooms were added in OMR area banking on corporate customers.
That business is not there now.
The average room rate (ARR) which used to be Rs 4,000 is now in the range of Rs 2,600 to Rs 3,000,” said a manager of a star hotel.
The city is set to get an advantage while attracting domestic tourists in the initial days of resumption of travel, say industry sources.
People may opt for weekend stays too as work from home continues.
“Hotels are expecting a boom when more relaxations are introduced because people who worked from home may have saved more as they couldn’t travel or eat out.
It is this clientele that will help hotels bounce back,” said an official from another hotel.
Stakeholders in the hospitality sector said star hotels will continue to have tariff at least 15% less than the pre-Covid times till signs of normalcy returns.
Sandeep Bhatnagar, senior general manager of Ramada Plaza Chennai said most hotels in the city reached pre-Covid occupancy in February, before the second wave hit.
“We are bullish of revival in a couple of months as restrictions are lifted across the country,” he said.
South India Hotels and Restaurants Association (SIHRA) honorary secretary and deputy managing director of GRT Hotels and Resorts, T Nataarajan said complete revival and normalcy is expected by the end of this year.
“Room tariff in Chennai are low now because the rooms are mostly offered to health workers on Covid-19 duty.
The tariff will go up when the demand from the corporate sector shoots up,” he added.
Top stays in Chennai cheaper than other metros
