High rates erode hotel occupancy

"Research indicates that the effects of spiralling rates have already been noticed in most markets. For the first time in four years, markets have started showing a decline in occupancy," the survey said.

http://economictimes.indiatimes.com/...ow/2426538.cms

Supply and demand only goes so far.

Like that article says, quite a few businesses, including some here in Hyderabad, had started using guest houses and the like.

I foresee that hotels' F&B business will be hit soon, too, with salaries in some industries set to stagnate for a bit, or the BPO industry set to take a hit on the chin because of the rising (risen?) rupee.

Actually it is Supply & Demand working properly to level things off..

I meant the S n D projections which had hotels making expansion plans on the assumption of ever increasing rates..