23 July 2007

Pricing Power hits - er India?

The headline is not a mistake.

While there has been a lot of attention paid to the stellar growth of the Online Travel Sector in India and the spectacular explosion of LCC traffic - the hotel sector has been quietly suffering. There are essentially no hotel rooms in India. So anyone with any can charge a premium. Up till now the paucity of product has been tempered by the lack of available distribution channels. With all the Online players and even the airlines now able to offer hotel rooms in combination or seperately - the hotelliers can rightly flex their muscles. In a recent report in Travel Weekly OZ one tour operator described the situation as "out of control". Duh... wake up people. Just look at the US market and for a REALLY tight supply situation look no further than the world's most expensive city... Moscow

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