India’s Luxury Hotels Are Underpriced, That Must Change, Says Oberoi CEO
Photo Caption: The Bush Kitchen at The Oberoi Vindhyavilas Wildlife Resort, Bandhavgarh.
Skift Take
According to Vikram Oberoi, it’s time Indian hotels stopped selling themselves short. He’s betting that Indian guests are ready to pay more, especially for top-tier stays.
Luxury hotels in India are “significantly underpriced,” according to Vikram Oberoi, managing director, CEO and executive director of EIH Limited.
Oberoi said he’s keen to change that.
“Our objective is to drive our rates higher, and we’ve done that during the financial year, and we’ll continue to do that going forward,” Oberoi said during the company’s earnings call on Monday. EIH Limited operates the Oberoi and Trident hotel brands.
Oberoi even suggested the company would rather sacrifice some occupancy if that means stronger pricing. “If demand continues to be as it is today, our endeavor will be to drive rates up to the largest extent possible, and even if that is at the cost of occupancy. As long as our RevPAR sees strong growth, and I don't see any reason why that will change.”
This marks a shift in focus from just filling rooms to making each room n
