Vijayawada hotels see low occupancy despite rush for Dasara and two other events
Hoteliers in Vijayawada report low occupancy rates despite the city hosting multiple major festive events. Business owners attribute the decline to an oversupply of hotels and a shift in tourist behavior, where visitors prefer day trips or alternative dining options.
Why it matters
The situation illustrates the challenges of market saturation and changing consumer habits in the hospitality industry during peak festive seasons.
Three events, Dasara celebrations , Vijayawada Utsav and Saras Mela , are taking place simultaneously in the city, but the festive rush has not translated into more business for hotels, say hoteliers.
Despite the heavy festive rush that the city is witnessing every day, hotels, including the budget ones, are reporting occupancy of only 50-60%. “While the city is in a celebrative mood, it is a grim scenario for the hospitality sector,” said P.V. Ramana, Vijayawada Hotel Owners’ Association president.
The city has around 1,000 hotels and more than 100 are located in Hanumanpet, which is close to the Kanaka Durga temple. Even those located close to the temple have reported poor business, said Mr. Ramana.
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