PANAJI
For once, Goa is offering travellers something that usually becomes harder to come by, as the calendar inches towards the tourist season. It’s the taste of luxury without the usual premium. With Ganesh Chaturthi falling on Monday and no extended holiday window for much of the country, the anticipated weekend rush has been relatively subdued. The lull, following the preceding off-season, appears to have left even high-end hotels and resorts with little option but to soften their tariffs before the tourist season gathers pace next month.
Across a number of four- and five-star properties, including established domestic and international hotel chains, rooms are currently being offered in the Rs 5,000 to Rs 15,000 range, depending on the property, room category and booking platform. Several deals come with breakfast or meals, along with the usual resort amenities. The luxury segment, too, has not been immune to the softer pricing. Deluxe rooms and, at some properties, even one-bedroom suites are available for below Rs 10,000 or only marginally above it. So are garden-view and sea-view rooms. Properties offering more elaborate experiences, including private gardens and private pools, continue to command a premium. A few high-end hotels and resorts are maintaining tariffs between Rs 16,000 and Rs 25,000, depending on the inclusions. “Generally, prices have been corrected. Likewise, flight prices are also lower. There is demand, but not as much as expected in Goa. Moreover, September-October is relatively quiet, but the rates could rise sharply once the peak season begins,” President of the Travel and Tourism Association of Goa Jack Sukhija said when contacted by The Goan.
The calendar has, in effect, tilted the balance in favour of travellers this year. Competition within the hospitality market is another factor keeping tariffs in check.
“The festival holiday covers only a small percentage of states... However, there is also a lot of competition within this small State. Several hotels, resorts and properties at scenic or quiet locations have emerged, leading to stiff competition and prompting properties to cut rates,” another TTAG member said.
He recalled a time when luxury properties could command close to Rs 1 lakh a night and sometimes more during the peak season.
The softer demand is also prompting hotels to prioritise occupancy over higher room rates, particularly as properties continue to bear fixed operating costs such as staff, electricity and water. “The occupancy is going down, so instead of hiking the rates, it is better to keep the rooms occupied/full. The running costs, including staff, electricity and water, still have to be maintained so even if the demand is less, it is better to keep the rates reasonable,” Goa Hotels and Restaurant Association President Gaurish Dhond told The Goan. He said competition from overseas destinations was also in fluencing travellers’ spending choices, with Goa having to compete with these affordable ones. "There are daily trips to Sri Lanka, Maldives and other international destinations. People prefer to spend that money outside Goa than expensive stays here. That has also led to a drop in hotel rates just like flight rates have now not seen a massive hike,” Dhond said.
Hotel occupancy is currently around 60-70%, industry sources said, although the weekend could see stronger numbers. Casino-linked hotels, meanwhile, are reporting almost full occupancy. Booking platforms, meanwhile, have altered another part of the equation, with travellers increasingly being asked to make advance payments to confirm a booking, unlike the earlier flexibility of confirming an online booking and paying after arriving at the property.
