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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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
4 h ago
Lot of big hotels are franchises and some one runs it and also many hotels may not be big ones have a sleeping partner in a politician who remains away from it and does not want propaganda similar to like many big schools /colleges have a politician as a sleeping partner and in that way they keep the trouble maker away more
14 h ago
Generalization of Corruption: The claim that "most luxury hotels in India are a product of corruption" is a sweeping generalization without evidence. While isolated cases of unethical practices may exist, many luxury hotels in India are owned and operated by reputable companies, such as the Taj Group, Oberoi Hotels, ITC Hotels, and international chains like Marriott and Hyatt, which adhere to global standards of governance and accountability. Post-COVID Pricing Surge: The surge in hotel prices post-COVID was not unique to India. Globally, the travel and hospitality sector experienced increased prices due to pent-up demand, reduced supply (many hotels shut down or reduced capacity during COVID), and inflationary pressures on operational costs. Market forces are gradually correcting these prices as demand normalizes. Tourism Is a Major Livelihood Provider in India: Tourism directly and indirectly supports millions of livelihoods in India, from hotel staff, travel agents, and tour guides to artisans, transport providers, and street vendors. The World Travel and Tourism Council (WTTC) reported that tourism contributed 6.9% to India’s GDP in 2022 and created over 35 million jobs, debunking the notion that tourism is "not a source of livelihood." Competitiveness and Innovation in Indian Tourism: Many Indian tourism businesses are competitive and innovative, catering to all budget ranges, from backpackers to luxury travelers. For instance, home stays, boutique hotels, and eco-tourism initiatives provide affordable and authentic experiences. Initiatives like Incredible India, Dekho Apna Desh, and infrastructure upgrades (like better airports, roads, and rail connectivity) show the government's efforts to boost the sector. Tourism Challenges Are Global: Challenges like high prices, service inconsistencies, and unethical practices exist in tourism sectors worldwide, not just in India. These issues stem from various factors, including market dynamics, regulatory frameworks, and local business environments. Blaming the entire sector as a "mafia" overlooks genuine businesses striving to provide excellent service and value. Luxury Hotels and Economic Principles: Even luxury hotels owned by wealthy entities cannot sustain losses indefinitely. Businesses, regardless of ownership, are bound by economic principles. Operational costs, maintenance, and staffing require revenue, incentivizing hotels to remain competitive. High-end hotels often charge premium rates due to the level of service, exclusivity, and global standards they provide, which cater to a niche clientele. Examples of Global-Class Tourism in India: India has several world-class tourism offerings, such as luxury train experiences (e.g., Palace on Wheels, Maharajas' Express), iconic heritage hotels (e.g., Taj Mahal Palace, Umaid Bhawan), and UNESCO World Heritage sites, which are highly appreciated by international travelers. Scope for Improvement: It is fair to critique certain areas of the tourism sector, such as overpricing or inconsistent service. However, these issues require constructive solutions, such as better regulation, price transparency, and improving service quality. Sweeping negative claims do little to address these challenges or highlight the hard work of genuine players in the industry. Conclusion: While the tourism sector in India, like any other, has its challenges, dismissing it as a "mafia" undermines the contributions of millions of hardworking professionals and businesses that depend on it. Constructive solutions, such as promoting fair pricing, enhancing service standards, and regulating unethical practices, can address specific issues without discrediting the entire sector. India’s tourism industry is diverse, dynamic, and essential to its economy, with significant potential for growth and improvement. more
Dec 22
