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

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

  • MyStocks


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

TAJ GVK 2020-21 Annual Report Analysis (Annual Result Update)

Nov 19, 2021 | Updated on Nov 19, 2021

Here's an analysis of the annual report of TAJ GVK for 2020-21. It includes a full income statement, balance sheet and cash flow analysis of TAJ GVK. Also includes updates on the valuation of TAJ GVK.

EIH ASSO.HOTELS 2020-21 Annual Report Analysis (Annual Result Update)

Oct 29, 2021 | Updated on Oct 29, 2021

Here's an analysis of the annual report of EIH ASSO.HOTELS for 2020-21. It includes a full income statement, balance sheet and cash flow analysis of EIH ASSO.HOTELS. Also includes updates on the valuation of EIH ASSO.HOTELS.

MAHINDRA HOLIDAYS Announces Quarterly Results (2QFY22); Net Profit Up 107.9% (Quarterly Result Update)

Oct 26, 2021 | Updated on Oct 26, 2021

For the quarter ended September 2021, MAHINDRA HOLIDAYS has posted a net profit of Rs 598 m (up 107.9% YoY). Sales on the other hand came in at Rs 5 bn (up 13.5% YoY). Read on for a complete analysis of MAHINDRA HOLIDAYS's quarterly results.

Revenge Travel is Here. 9 Stocks Likely to Benefit (Views On News)

Sep 4, 2021

The term 'revenge travel' refers to the desire of going on a vacation after an extended period of lockdown.

Why Did Shares of Jubilant FoodWorks Rally Today? (Views On News)

Jun 16, 2021

The company sees a 90% recovery despite minimal dine-ins.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

MobiKwik IPO Opens for Subscription Soon. Key Things to Know Before Subscribing. (Views On News)

Nov 20, 2021

The Rs 19 bn issue is set to hit the market soon.

5 Indian Companies Embracing Blockchain Technology (Views On News)

Nov 23, 2021

Blockchain adoption in India was slow in the past. Now, the technology is being well received.


Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms