AP hotels hike menu prices by 20–30% to rackle rising costs

Vijayawada: Star hotels in Andhra Pradesh are beginning to feel the ripple effects of ongoing geopolitical tensions in West Asia, with rising fuel prices and supply disruptions squeezing operations and profitability.According to the AP Star Hotels Association (ASHA), the surge in global fuel prices has sharply increased operational costs. Hotels in Vijayawada and Visakhapatnam are facing higher expenditure on logistics, power generation, procurement, and service delivery.A major concern flagged by the industry is the irregular supply and escalating cost of LPG, a critical input for hotel kitchens. Delays in refills and inconsistent availability have disrupted kitchen efficiency, forcing hotels to explore alternative fuels that are costlier and complex to manage.The escalation extends beyond fuel. Prices of essential commodities such as cooking oil and transportation have risen steeply. Hotels have revised menu prices by 20–30% to offset costs, but many continue to absorb part of the burden to maintain service standards, putting pressure on margins.To cope, hotels are optimising kitchen operations, streamlining menus, and enhancing energy efficiency. Meanwhile, rising aviation fuel prices have pushed up airfares, prompting caution among travellers. Occupancy remains stable for now, but hoteliers warn of a potential dip if the situation persists.Employment levels have been maintained, but stakeholders caution that prolonged uncertainty could eventually affect staffing. ASHA president RV Swamy stressed that LPG availability and pricing remain the most pressing concerns, urging government intervention to stabilise input costs and safeguard jobs.