Rs 1 lakh for a room! Goa hotel tariffs hit the roof this New Year's Eve
It is a tale of the new tax. The New Year’s Eve demand for hotels has triggered a fourfold increase in room rates at popular holiday hot spots such as Goa. Consequently, the goods and services tax (GST) component on some of the hotels is higher than the usual tariff they command.
Another Taj property in Goa, Taj Fort Aguada Resort & Spa, is commanding a price tag of Rs 52,200 for one night at a superior garden view room with breakfast. Along with Rs 14,840 in the GST, the total damages are Rs 67,040 for a one-night stay. Book the same hotel for a one-night stay on January 31, the tariff is Rs 13,200; with the GST, the total is Rs 17,120.
Taj Fort Aguada Resort & Spa
This December is different for the hotel and travel business, compared to last year when demonetisation had impacted travel between Christmas and New Year. Tariffs and hotel occupancies are higher for a number of hotels in key destinations like Goa, Udaipur, Jaipur, and Manali being sold out. Hotel prices have become dynamic this time, with frequent price increases in line with declining inventory.
“Hotel tariffs have become dynamic like airfare and we are seeing a day-to-day price change based on demand. I am seeing an increase of almost 20 per cent in demand, compared to last year when we had felt the pinch of demonetisation and people were busy sorting out their finances. Hotels had seen cancellations and empty rooms last December,” said Kapil Goswami, managing director at BigBreaks, an online travel portal.
Domestic destinations dominate the travel choice of Indians between Christmas and New Year. Of the top 10 destinations that Indian travellers searched for travel during this period, only two – Dubai and Singapore – were international locations, said hotel search and price comparison engine Trivago. Goa topped the list and others in the top 10 were places like Jaipur, Puri, Udaipur, and Manali.