US fall-out: Hoteliers keeping their fingers crossed

By Anjali Malhotra

NEW DELHI, SEPT. 21. Come October and the relatively lower mercury levels and lure of major festivals make Delhi a preferred holiday destination for foreigners and NRIs. But the recent terrorist strikes in the U.S. have spelt a sluggish start to what is considered ``peak season'' for the hospitality industry. All major hotels here are preparing themselves for a lean season ahead with the cancellations of bookings going up.

``There has been a spurt in cancellations in the initial week after the attack, especially by leisure groups. They feel unsafe flying through this region. Any hopes of a quick recovery have been obliterated as the pick-up rate is 15 per cent lower than normal,'' says the resident manager of Le Meridien, Ms. Meena Bhatia. According to her, it is the U.S., European and Japanese markets that have been worst affected.

Other hotels in Delhi have recorded a similar rise in cancellations. Simultaneously, there is a marked fall in bookings -- more pronounced in the leisure group. ``Since the attacks, there have been a number of group cancellations. Many delegations and leisure groups have called off their trips. However, most individual and corporate bookings still stand,'' says Ms. Pooja Burman of Taj Mansingh Hotel.

The trend is also noticeable in the U.S.-based Radisson Hotel chain. Most agree that this is a bad start for the peak tourist season here but hope bookings and arrivals will pick up as the season progresses.

``It is still too early to say anything. There is a definite increase in cancellations, but this trend set in just a couple of days ago. This might well be an immediate reaction. Also, the pick-up rate has dropped but the fall is not that significant,'' asserts Mr. Rishi Kapoor of Imperial Hotel.

``The important thing to note,'' he adds, ``is whether this is an initial trend that will die down with time or will have a long- term impact -- something that would depend primarily on how the U.S. retaliates.''

According to Ms.Manjula Arun of the Government-run Ashok Hotel, ``it is too soon to anticipate whether the slump will continue through the season. There have been a spate of cancellations, but let's wait and watch.''

In the wake of the attacks in the U.S., Delhi hotels have responded by tightening security. ``Every car entering our premises is thoroughly checked. We are also keeping a close watch on all non-resident visitors,'' says Ms. Harinder Singh of Hyatt Regency, which too has registered a ``sharp'' increase in cancellations.

Ms. Bhatia of Le Meridien adds: ``We have notified our in-house security team to remain on full alert. Also, we have increased patrolling of the hotel premises and peripheral areas.''

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