How Tech Can Help Hotels Manage Occupancy

Limited business, lack of real-time market pricing and strategy insights is resulting in conflicts. Fortunately, hoteliers can turn to tech to resolve this

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The hotel occupancy rate in India has dropped by half in 2021 at 33.8%, from the earlier rate of over 60%, as per the Statista Research Department. There was a prediction of V-shaped recovery with the announcement of vaccines earlier this year. However, the second wave of the pandemic changed the scenario.

With relaxation in the lockdown norms, many states have started opening up their economy, allowing businesses to function. However, the prediction of the third wave has created hesitancy among the customers.

Thus, the hospitality industry continues to face numerous challenges in maintaining occupancy. In such a scenario, what role can technology play?

Before delving into the solutions offered by the technology, let us take a closer look at the obstacles posed by the looming uncertainty. The volatile economic environment and varied rules for PCR tests coupled with lockdown in different states have made it hard for hoteliers to forecast any upcoming trend among customers.

Hotels are struggling to keep even the limited staff at reduced salaries. With negligible corporate/business travel and no inbound international travel, relying on leisure travel for business can work only for the short term. Furthermore, only hotels in holiday destinations can survive, while those in tier A and B cities are facing the brutality of the times. An added travel woe is the all-time high fuel rates.

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