New Delhi : Demonetisation and the consequent cash crunch continued to hit hard as bookings received by star-rated hotels in metros registered a decline of about 5-7 per cent on New Year's Eve celebrations, a leading industry body said on Friday.
According to the survey by Assocham Social Development Foundation, many hotels have not revised rates of New Year packages, but lowered the rates by about 2-3 per cent and are bundling various offers, promotions, deals and discounts on services in one package at a bargain price.
Further, the survey highlighted that while many party-goers are hoping to get good discounts at star properties, most others plan to celebrate the New Year's Eve at house parties with friends and family or at their homes.
"New Year's Eve is the perfect occasion for especially the youth to unwind and soak in the festivities with their friends and family, though with ever-growing per-capita incomes people do not mind indulging in some extravagance," said D.S. Rawat, Secretary General of Assocham, adding that the "cash crunch in the wake of demonetisation seems to have an impact on their plans this time".
"Star-rated hotels too seem to be reeling under some impact of the Centre's bold move of demonetisation, more so as this is really the best season for hotel industry but are being forced to scale down their New Year's Eve activities as they are not able to draw many people," Rawat added.
The industry body said it had interacted with about 50 star-rated hotels in Ahmedabad, Bengaluru, Chennai, Delhi (National Capital Region), Hyderabad, Indore, Jaipur, Kolkata, Lucknow and Mumbai, and also with about 250 youngsters to gauge how people in urban centres are planning to bid farewell to 2016.
"Many of the participants with moderate budgets said though New Year celebrations in star hotels have always been expensive affairs, demonetisation has certainly dented their plans in this regard," the survey said.
"While those with bigger budgets said they were hoping to get some good deals/discounts as many hotels are likely to do away with the usual price-hikes in entry fees and drinks costs."