Tourists Flock To Hill Stations Amid Heatwave, Boosting Hospitality Biz

EE News Desk Jun 11, 2024

Many five-star hotels are fully booked as summer vacations commence

Media reports suggest that as the intense summer heat continues to rise, hotels in hill stations are experiencing a significant surge in business, with several companies reporting a 30 per cent increase in occupancy and soaring revenues. Many five-star hotels are fully booked as summer vacations kick off across the country.

For the entire month of June, the ultra-luxurious Wildflower Hall in Shimla, managed by Oberoi, is charging between Rs 41,000 and Rs 45,000 per night for a standard room. This is roughly 50-60 per cent higher than the usual rates for June, with at least three nights already sold out. The top suite at the same hotel is priced at approximately Rs 1.9 lakh per night. Similarly, the Six Senses Vana in Dehradun is priced at Rs 95,000 per night, including taxes.

Popular destinations include Kashmir, Leh-Ladakh, Uttarakhand, Himachal Pradesh, the Northeast, Coorg, Munnar, Coonoor, and Wayanad. This increased demand is also driving up airfares, despite many travellers opting to drive. For example, outbound airfares from Delhi to destinations like Darjeeling have increased by 7-25 per cent compared to June 2023. Fares to Bagdogra have risen by 25 per cent, and to Dharamshala, Shimla, Manali, and Srinagar by 16-17 per cent. Fares to Coonoor, Coorg, and Munnar via Coimbatore have increased by about 8 per cent, according to data from Thomas Cook India. Additionally, online travel agency Yatra Online has reported a 10-15 per cent increase in airfares to nearby airports serving hill stations such as Shimla, Manali, Coorg, and Munnar.

Daniel D’Souza, President & Country Head – Holidays, SOTC Travel pointed out, "Our online searches for hill station hotels have jumped by over 50 per cent compared to last year for locations such as Shimla, Manali, Coorg, Darjeeling, and Gangtok. This travel demand has significantly increased hotel occupancy by approximately 30 per cent, with room tariffs rising 8-15 per cent."

The company has observed that hotel prices have risen in various areas - Darjeeling by 10-14 per cent, Coonoor, Coorg, and Munnar by 5-14 per cent, and Dharamshala, Shimla, and Manali by 8-12 per cent. Srinagar has also seen a 12 per cent increase for both 4 and 5-star properties. There is strong demand from young professionals, with a surge in last-minute and impulse bookings, and a high interest in outdoor-adventure experiences among couples, DINKs (double income, no kids couples), groups of friends, millennials, and Gen Zs.

Thomas Cook India is experiencing a significant demand increase of over 30 per cent for cooler destinations due to the intense heatwave in Delhi-NCR and surrounding regions. The company has reported heightened interest in short breaks and weekend getaways of 2-3 nights, as well as longer stays of 7-15 days or more. With most travellers starting their holidays later this year due to voting in their constituencies and the extreme weather, the company expects this demand to continue through mid-August.

Nikhil Sharma, managing director and area senior vice president for South Asia at the Radisson Hotel Group, mentioned that amid the current heatwave, many travellers are choosing quick road trips to hill stations. Radisson hotels in Dharamshala, Pahalgam, Kufri, Sonmarg, Srinagar, Manali, and Mussoorie have experienced a 15 per cent year-on-year growth in occupancy, with average daily rates increasing to Rs 18,000 or more per night. "Travellers generally prefer a mix of luxury and mid-segment accommodation for their 3-5 day stays, engaging in activities both within and outside the hotels," Sharma brought out.

A spokesperson for Marriott International highlighted that their current trends are positive, with hill resorts experiencing a 7 per cent increase in average daily rates compared to last year and a 10 per cent rise in revenue per available room (RevPAR). The company's travel trends and pace are ‘favourable’ compared to last year, with occupancies exceeding 75 per cent. The increased demand is being optimised by the company.

Sarovar Hotels & Resorts reported a 10-15 per cent growth in occupancy for June at its hill properties compared to last year, with an average increase of 12-15 per cent in daily rates across its properties in May. Projections for June indicate similar growth, with increased business in Bhimtal, Dalhousie, Manali, Shimla, and Srinagar. Likewise, Lemon Tree Hotels has seen a rise in bookings for hotels and resorts in Jammu & Kashmir for May, with higher average room rates and occupancies than last year, a trend expected to continue into June. Their Gangtok hotel has also reported better occupancies than last year, and the company has recently opened hotels in Manali, Mcleodganj, Sonmarg, and Kasauli.

The hills' gain has been a loss for warmer locations. While hotel rates have surged in cooler areas, cities in Rajasthan, for instance, are experiencing a significant drop in hotel rates. Brands like Radisson, Devi Ratn, Jaipur – IHCL SeleQtions, and Intercontinental in Jaipur have rates that are 18-55 per cent lower than their regular prices. Even regions in Uttar Pradesh, such as Agra, have seen a substantial drop in rates and some cancellations from travellers. The Oberoi Amarvilas, for example, is quoting rates 20-30 per cent lower than usual.