Luxury hotels offer steep discounts as arrivals dip

Kochi: It is peak summer travel season, yet many of Kochi's top starred hotels have cut room rates by up to 30%. The reason: A sharp fall in both international and domestic luxury tourists has forced hoteliers to court local customers aggressively. In previous years, hotels could rely on high-end domestic tourists to maintain occupancy even when international arrivals were weak. This year, however, soaring airfares have deterred travellers from other Indian cities, leaving hotels with little choice but to court Kochites and visitors from neighbouring districts. To attract this segment, luxury hotels have rolled out staycation packages bundling complimentary meals, late checkouts and free stays for children. "This reduction in room rates is a direct response to a sudden drop in high-end bookings. Most luxury hotels and resorts are offering discounts ranging from 10 to 30% through special offers," said Abraham George, former president of Kerala Travel Mart. George attributed the decline in international arrivals to instability in West Asia, which has disrupted flight connections. The impact on NRI tourism has been particularly significant. "The flow of non-resident Indians, who typically return in large numbers during the holiday season, has seen a sharp decline due to safety concerns and flight disruptions. Airfares have skyrocketed, hitting inbound arrivals hard," he said. State-owned KTDC hotels have introduced a children's package scheme for April and May, targeting families from within Kerala. A two-night, three-day package is priced at Rs 11,999, dropping further to Rs 8,555 at resorts like Periyar House, with free stays for children. The KTDC hotels include the popular resorts like Bolgatty Palace in Kochi and Aranya Nivas in Thekkady. Private hotels have followed suit. A five-star property in Kundannoor on the Kochi bypass launched a ‘stay more pay less' scheme in March, offering 15% discounts across food and beverage, spa, city tours and laundry, an offer since extended into April. Domestic airfares are compounding the problem. A one-way flight from Bengaluru to Kochi now frequently exceeds Rs 9,000, while tickets from Mumbai hover around Rs 10,000 on weekends. "Flight prices have surged due to high aviation turbine fuel costs. We have long argued for regulatory intervention to cap fare increases," said Biji Eapen, national president of the IATA Agents Association of India. "While international arrivals have been affected, key tourist destinations in the district continue to see strong demand from locals. The soaring temperatures are also pushing tourists from outside the state to look elsewhere," said Lijo Joseph, Ernakulam DTPC Secretary.