Foreign travellers can now rejoice

MUMBAI: Foreign travellers can rejoice. Major hotel chains are considering switching to a single currency tariff structure from dual tariffs. Taj group, the country���s largest hotel chain, is debating a single currency tariff structure. So is East India Hotels, owners of the Oberoi group. Smaller hotel chains like Kamat Hotels, that owns and manages The Orchid Hotel, and Lotus Suites in Mumbai are also exploring the idea.The domestic hotel industry has had a dual currency and dual pricing strategy for its rooms for decades.
"It is inevitable. It is a good time to look at the concept, considering that the economy and business are doing well," Arjun Oberoi, deputy MD, East India Hotels, told TOI at the sidelines of a seminar on the hotel industry, organised by global consultancy firm HVS International in Mumbai. However, Oberoi added that a final decision is yet to be taken.
Under the dual pricing policy, hotels charge their nonresident or foreign guests, a dollar tariff,which is usually pegged 10-15 per cent higher than the rupee tariff paid by Indians. The higher tariff structure is significant given that majority (60 per cent) of guests at five-star hotels are foreigners.
Developed countries and a few South Asian countries follow a single currency regime.
International hotel chain Hyatt had made the first move by taking bookings for its rooms in rupees, irrespective of nationality or source of booking. ���The shift towards the single rate was in line with the policies followed in the developed economies," says Ratnesh Verma, area director of South Asia, Hyatt. ���This will help us increase our profitability through enhanced revenues because of greater transparency and consistency in pricing across various distribution channels globally.
Leading to increased customer confidence and larger business volumes," Verma added. Hyatt International offers around 2,000 rooms in India spread across five properties.
Paris-based Accor Hotels, that has the Sofitel, Novotel, Mercure and Ibis brands in its portfolio, is all set to roll out its carpets for tourists in Hyderabad and is also working on the pricing for its rooms. Says Dennis Oldfield, head of operations, Accor Hotels India, ���Pricing depends on the distribution system like global distribution system, where people prefer the rates to be quoted in dollars and convert it to the local currency."
Lalit Suri, CMD, Bharat Hotels, says, ���With the rupee stabilising, it really doesn���t make much difference in value terms. When rupee strengthens, the foreigners pay more." Around 50-80 per cent of a hotel���s total room revenues is earned in foreign currency. ���Around 90 per cent of room deals are negotiated tariffs. The rest comes in the form of non-reservations. If the government comes out with a norm, then we all would be obliged to go for single currency tariff," says Param Kannampilly, technical director, Kamat Hotels.
At present, the industry can import equipment at concessional duties against forex earnings, under the EPCG scheme. ���We have to figure out all issues and its implications. The whole pricing issue is currently under discussion,��� said Farhat Jamal, V-P, Taj Group, Mumbai.
The changes are coming at a time when hospitality industry is seeing good times like never before. Rooms are chock-a-block and average.