On the occasion of the first anniversary of the 26/11 terror attacks in Mumbai, NDTV tries to find out how have things changed for the hospitality industry.
Reeling under the pressure of global meltdown, Indian hoteliers were eagerly looking forward to the peak season to make up for lower occupancy since mid-2008.
But then happened the deadliest terror attack on the Indian soil, aimed right at the heart of the country’s hospitality industry.
Icons, marveled by many, reverberating with bullets were up in flames, plunging the industry into its darkest hours.
Within a few days, the occupancy plunged and average room rates halved.
Major events and exhibitions were called off and there was a large-scale cancellation of bookings.
And if all this was not enough, travel advisories from various nations hit the final nail on the head, hitting the leisure destinations the hardest.
Those were the trying times. Despite the withdrawal of over 1,400 rooms from Taj and Trident from the Mumbai market, the occupancy level even in the leading hotels like the Hotel Leela plummeted to 40 per cent for the next two to three months.
So, what has changed over the last one year?
From 80 per cent occupancy before the attacks, occupancy nosedived to 40 per cent in Mumbai, touching the lowest of 33 per cent in January before starting the move up. Hotels outside Mumbai saw a drop of 20-25 per cent in occupancy and room rates dropped below 50 per cent. Also, many real estate players withdrew from major projects with many hoteliers deferring their expansion plans.
Meanwhile, security has seen a sea change. It’s more visible and new hotels are being built keeping in mind the security aspects.
But after six months of pain, things now seem to be coming back on track.
Thanks to the resilience of men like Karambir Singh Kang, general manager of Hotel Taj Mahal, and his team who despite the personal turmoil of losing friends and family have worked tirelessly to help the Taj regain its old glory.
And just like the team at Taj and Trident, the Indian hospitality industry has made a remarkable comeback.
The optimism is back and the occupancies are getting stronger too, but most importantly, now the eye is on profitability.
With the worst behind them, hoteliers are again ready to welcome the tourists with open arms.