Low levels of communication services, such as Internet, telephone, fax and television, have impacted occupancies at three- and four-star hotels, a study conducted by the Federation of Hotels and Restaurant Association of India said.
"In three- and four-star hotels, while the level of information technology services being offered is better, it has become imperative for individual properties to upgrade IT services in order to lure customers," the study said.
The association added that lack of these services was likely to have a major impact on the occupancy levels of these hotels.
According to the study, while practically all the five-star and five-star deluxe hotels have 24-hour access to the Internet through a dial-up service, 75 per cent hotels plan to install plug-n-play services or broadband Internet within the next one year.
Only 48 per cent hotels in the three- and four-star categories are providing dial-up Internet, while 26 per cent are offering broadband services.
Also, the percentage of hotels providing voice mail in three- and four-star categories is only 7.5 compared with 75 per cent in case of five-star and five-star deluxe hotels.
A large number of the lower category hotels are offering Internet, fax, photocopy, and secretarial services in their business centres.
Almost all hotels in the five-star and deluxe category offer these services including colour printers, computer.
About 55.56 per cent of five-star and 40 per cent of the three- and four-star category hotels admitted that financial return from investment in these services and especially from the Internet usage was high.
Almost all hotels in both the categories agreed that investment in these services had given them the marketing advantage.
Some three- and four-star hotels pointed out that though the cost incurred by them in installing services are the same as in the case of five-star hotels, they can charge much lower rates and thus get lower returns on their investments.
The association suggested that the hotels should prepare a short- and long-term plans regarding communication services.
"While a short-term plan should deal with areas which need immediate attention and should be implemented within the next one year, the medium-term plan should be for new desirable activities and certain upgradations over the next 2-3 years."
"Hotels should find funds for short-term plans or could even consider buying equipment on lease rentals or on installment basis," the association said in the study.
Over 80 per cent of the hotels in the sample of the survey were hotels, while the remaining were resorts.
On top of the list of customer demand were 24 hours business centre facility, access to Internet from business centre, Internet service through the guest room, laptop on demand.
The service which drew maximum number of complaints included low Internet speed, followed by a distant margin by high charges for the business centre services and for Internet usage and problems in connecting to the Web.
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