By Martin Kelly, Editor, Travel Trends
The balance of power is shifting in the Indian hotel market, where occupancies have fallen from 90% to 60% over the past 12 months. Hoteliers now need all the distribution they need get in a scenario that’s begining to echo the aftermath of 9/11 in other parts of the world when the accommodation industry, sometimes recklessly, used the online channel to shift distressed inventory. Indian travel players see a similar scenario is developing on the sub-continent with softening demand compounded by a flood of new supply.
Deep Kalra, Founder and CEO of MakeMyTrip.com, said: "The markets are getting softer. In some ways I guess the situation looks similar to 2001 and we can take advantage of that." New capacity is also coming online. "Hundreds of hotels is what everyone is talking about." Dhruv Shringi, Founder and CEO of Yatra Online, added: "Hotel bookings are down 15% to 20% and OTAs are in a great position to leverage that." Travel Trends: November 20, 2008