Why tourism sector is broken in India
There is an easier hypothesis why holidays in India have become Ultra expensive.
Most of the luxury hotels in India are not a source of livelihood for the people who run them. It is not a legit business entity.
Most hotels are a product of corruption and swindle by the owners of that hotel. Many are owned by real estate barons, already rich businessman and corrupt politicians and babus who use them as a front to park their ill gotten gains.
Laws of economics do not apply to them applicable to them. They don't care if the hotel makes or loses money.
Because most of it is built from corrupt money. If is not as if their livelihood depended on it.
In that brief post Covid period when people wanted to get out and there was a travel boom, these guys realized they could get away with any price as people were paying.
Now as they have smelt blood, they don't want to reduce. And they won't, even if their hotel goes empty and they suffer a loss. It doesn't put food on their table anyway.
Tourist services in other countries are a source of livelihood for people who operate them. They won't be able to put food on their table if tourists don't come. That's why they are competitive in terms of price and service.
In India tourist services are basically a Mafia. They don't care if you come or not. Their party will keep going on. more
Most of the luxury hotels in India are not a source of livelihood for the people who run them. It is not a legit business entity.
Most hotels are a product of corruption and swindle by the owners of that hotel. Many are owned by real estate barons, already rich businessman and corrupt politicians and babus who use them as a front to park their ill gotten gains.
Laws of economics do not apply to them applicable to them. They don't care if the hotel makes or loses money.
Because most of it is built from corrupt money. If is not as if their livelihood depended on it.
In that brief post Covid period when people wanted to get out and there was a travel boom, these guys realized they could get away with any price as people were paying.
Now as they have smelt blood, they don't want to reduce. And they won't, even if their hotel goes empty and they suffer a loss. It doesn't put food on their table anyway.
Tourist services in other countries are a source of livelihood for people who operate them. They won't be able to put food on their table if tourists don't come. That's why they are competitive in terms of price and service.
In India tourist services are basically a Mafia. They don't care if you come or not. Their party will keep going on. more
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You have no understanding of free market economy when you write this. Today people have more money and they are willing to spend on hotels, food and attraction during holidays. When you have not enough of good hotels and more people want them you are willing to pay higher. That is how it works. Building more good hotels, providing good service will bring down the prices. more
Jan 20
tourism industry as as a hole is lopsided. 1. There are luxury hotels -- 4-5-7 star who believe any rental is less. They are priced in USD and converted to INR, Obviously, much less executive travel these days, they will feel stressed. 2. Hotels less than 4 star presume that they can charge taking a cue from luxury hotels, and with high inflation and stagnant or declining actual income, travel is least priority. So, they are also bound to be stressed. Now, so how they are surviving. As already pointed out, a lot of money is ill acquired wealth & a front. As for value for money, Indian tourism industry is miserably bad and that that is a well acknowledged reason of poor foreign foot falls in India. more
Jan 01
It is difficult to agree with such a sweeping conclusion. Tourism in India has several different problems, not just accommodation in hotels. There are several apps available which provide discounts in hotels and are always in competition with each other. Branded hotel chains have their own pricing policies. Still, if it is already known that some hotels have been started with ill-gotten money, it can be reported to the Govt., even anonymously. There are anti-corruption agencies to look after this aspect. On the other hand, it is difficult to regulate the tariff of hotels in India because that would essentially depend on several factors like location, amenities, season, demand & supply, etc. However, certain other aspects like providing basic amenities, safety of tourists, etc. must be mandated by the Govt. and this can be regulated too. Such a measure will help both domestic and international travelers to India. more
Dec 26
I see a large number of such sweeping statements, without any data backing them, being posted on LC these days. I understand it may be taken as a defence mechanism for letting out pent up steam and hence somewhat of a positive, but it also tends to spread negativity in the populace and dooms day scenarios may lead to frustration being taken out in violent ways. I think LC admin should moderate this kind of cynical propaganda. more
Dec 23
