A severe heatwave in Rajasthan has deeply affected the hospitality and tourism sector, causing occupancies and room rates to drop to unprecedented lows. According to reports, larger hotels slashing rates by 75-80 per cent to fill their extensive room inventories, have particularly hit smaller hotels hard.
Historically, despite high temperatures, Rajasthan has been a popular destination for corporate meetings, incentive travel and family vacations, with the off-season summer months offering attractive deals. However, this year is starkly different.
Reportedly, occupancies and rates have plummeted since May, with leading chains experiencing a drop to 20-25 per cent, compared to about 50 per cent last year. Corporate travel and meetings, typically taking advantage of off-season discounts, have been significantly rescheduled. Businesses are hesitant to send employees to Rajasthan and school trips have also been cancelled.
Visits from friends and family, usually planned during summer vacations, have dwindled as families postpone trips due to the extreme heat.
The economic impact is substantial, with many hotels sending staff on long leaves to reduce operational costs. Smaller hotels have sometimes seen no bookings at all, exacerbated by larger hotels offering drastically reduced rates.
As Rajasthan faces this challenging period, the industry looks forward to the monsoon season for relief.
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