ARRs dipping but no need to panic right now: Royal Orchid

CK Baljee, Chairman, Royal Orchids feels that occupancy may take a hit in the next quarter because there has been some slowdown in travel. At least in airfares, there has been some cutting down of the travel expenses, he feels. And this may reflect in some degree on occupancy, Baljee added. "But the Average Room Rates or, ARRs at the moment are holding on because on capacity, we are seeing particularly in Bangalore, Pune, there is no additional capacity right now."

The moment the capacity comes then there will probably be more pressure on the ARRs as well. But at the moment, the situation is not something to panic about. The situation is okay, Baljee said.

The other thing is that business travelers will have to travel, no matter what they do. Yes, the leisure travel might slow down. The business traveler will need to travel and to that extent our business will improve.