PKF survey shows drop in occupancy rates - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

PKF survey shows drop in occupancy rates

Feb 11, 2000

A study conducted by one of India's leading hospitality consultancy firms Pannell Kerr Forster Consultants (PKF) reports a fall of in hotel occupancies from 52.2% in 1997-98 to 49.7% in 1998-99. As per the results average room rates for the same period went up by 2.7% and revenues fell by 2% in 1998-99. This study covered majority of hotel chains as well as quality independent hotels. According to a press release by the company the Indian hotel industry has shown its inability to manage departmental operation expenses such as rooms, food and beverage telephone etc and hence these expenses have gone up by 10.2% in 1998-99. Undistributed operating expenses such as administration, marketing, operation and maintenance were also up by 10.9% for this period. As a result income before fixed charges (IBFC) fell by 20% from 40.9% in 1997-98 to 33.3% in 1998-99.

This survey places the Indian hotel industry in the perspective of hotels across Europe, Middle East and Africa. The comparison ranks India third from the bottom in terms of both room yields and IBFC. Even in occupancy India ranks third from the bottom after Kuwait at 42.7% and Kenya at 47.5%.

This survey is another pointer to the difficult times that the Indian hotel industry is going through. Unless the government makes efforts to promote India as a tourist destination by improving on the existing infrastructure bottlenecks and tries to reduce the high expenditure and luxury taxes which act as a deterrent to foreign tourists, the Indian hotel industry will continue to suffer from these drawbacks.


Equitymaster requests your view! Post a comment on "PKF survey shows drop in occupancy rates". Click here!

  

More Views on News

INDIA TOURISM DEV. Share Price Down by 5%; BSE 500 Index Up 0.9% (Market Updates)

Sep 25, 2020 | Updated on Sep 25, 2020

INDIA TOURISM DEV. share price is trading down by 5% and its current market price is Rs 234. The BSE 500 is up by 0.9%. The top gainers in the BSE 500 Index are GRANULES INDIA (up 9.5%) and HEIDELBERG CEMENT (up 5.6%). The top losers are INDIA TOURISM DEV. (down 5.1%) and OBEROI REALTY (down 5.3%).

MAHINDRA HOLIDAYS Announces Quarterly Results (1QFY21); Net Profit Up 47.4% (Quarterly Result Update)

Aug 24, 2020 | Updated on Aug 24, 2020

For the quarter ended June 2020, MAHINDRA HOLIDAYS has posted a net profit of Rs 268 m (up 47.4% YoY). Sales on the other hand came in at Rs 2 bn (down 29.4% YoY). Read on for a complete analysis of MAHINDRA HOLIDAYS's quarterly results.

THE INDIAN HOTELS Announces Quarterly Results (4QFY20); Net Profit Down 42.9% (Quarterly Result Update)

Jun 11, 2020 | Updated on Jun 11, 2020

For the quarter ended March 2020, THE INDIAN HOTELS has posted a net profit of Rs 668 m (down 42.9% YoY). Sales on the other hand came in at Rs 11 bn (down 14.6% YoY). Read on for a complete analysis of THE INDIAN HOTELS's quarterly results.

MAHINDRA HOLIDAYS 2018-19 Annual Report Analysis (Annual Result Update)

Oct 18, 2019 | Updated on Oct 18, 2019

Here's an analysis of the annual report of MAHINDRA HOLIDAYS for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of MAHINDRA HOLIDAYS. Also includes updates on the valuation of MAHINDRA HOLIDAYS.

EIH 2018-19 Annual Report Analysis (Annual Result Update)

Jul 24, 2019 | Updated on Jul 24, 2019

Here's an analysis of the annual report of EIH for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of EIH. Also includes updates on the valuation of EIH.

More Views on News

Most Popular

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

My Top Stock to Buy in this Market Selloff (Profit Hunter)

Sep 22, 2020

The recent correction offers a great opportunity to buy this high conviction smallcap stock.

What Do the Charts Say About Buying Smallcaps Now? (Fast Profits Daily)

Sep 18, 2020

Everyone seems to be excited about buying smallcaps now...but is it the right thing to do? What do the charts tell us? Find out in this video...

How Much Money Do You Need to Be a Professional Trader? (Fast Profits Daily)

Sep 17, 2020

In this video I'll answer a question I get asked often: How much capital do I really need to trade the markets for a living? Let's find out...

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

COMPARE COMPANY

MARKET STATS