Mumbai, Aug. 3: Economic slowdown and inflation are forcing premium hotels to offer discounts to attract guests in the rainy season.

Canadian luxury brand Four Seasons, which opened in Mumbai two months ago, is offering a credit of Rs 4,000 per room to customers, meaning on each subsequent stay Rs 4,000 will be deducted from the customer’s bill. This facility is bundled with a complementary breakfast.

The hotel, when it opened in June last year, was the most expensive in the country offering a standard room at Rs 20,500, excluding breakfast.

However, the occupancy level has been sluggish, ranging between 40 per cent and 45 per cent.

The Leela Mumbai, where the average occupancy rates hover at 60 per cent during the season, is offering rooms for Rs 8,555 complete with a buffet breakfast and two-way airport transfers. The normal rate at the Leela is Rs 14,000.

The slightly up-market royal club rooms are priced at Rs 12,555 with a buffet breakfast and a host of other amenities.

At the ITC Grand, where the rack rates start from Rs 20,000, an executive club room is being offered at Rs 13,000, excluding taxes. The hotel is also packing in a complementary breakfast, evening cocktails and laundry facilities. Market watchers say the rainy season is generally a subdued period in terms of business.

“But this year, with the overall slowdown in the economy and inflationary pressure, hospitality and aviation sectors have been the first to suffer,” says Kapil Kaul, CEO, India and West Asia, the Centre for Asia Pacific Aviation.

“Air fares have shot up so steeply, that corporate travel has totally slowed down. The recession and the sub-prime crisis in the US have also hit foreign travel. Usually the second quarter is sluggish, but I don’t see a major improvement in the third and fourth quarter, since we’re bound for elections,” said Kaul.

According to Kaul, the aviation industry grew 5 per cent in the June quarter last year against 15 per cent negative growth this year.

Tariffs across the country, including primary destinations such as Delhi and Mumbai, have seen a correction of 30 per cent, he said.

According to Heeral Shah, hospitality analyst at Equity Master, prominent hospitality companies have registered 9 per cent growth in the first quarter this year compared with a robust 12 per cent growth rate clocked last year.

Shah predicts there will be a further correction over the next few years, as a supply of around 5,000 to 6,000 rooms comes into the market by 2010-2011.

In Mumbai, the Taj Mahal Palace and Tower is offering discounts of around 25 per cent for the standard rooms. A superior room (on double occupancy) is being offered at Rs 12,500 excluding taxes, whereas the official rates are pegged at Rs 16,500.

The hotel is also offering a 40 per cent discount on deluxe rooms — at Rs 12,800 (with breakfast) and taxes against the rack rate of Rs 21,000 plus taxes. Guests checking in between August 11 and August 17 can have the deluxe room for Rs 12,000. Both The Oberoi and the the Trident are offering hefty discounts on their published rates this season. The hotels have single occupancy rooms available at Rs 10,500 plus taxes against the published rate of Rs 21,650.

The JW Marriott also has some enticing offers to woo the corporate traveller on weekdays. Its escape spa package offers deluxe rooms with a buffet breakfast and complimentary massage for Rs 4,000.