Chandigarh: As private hotel players check in, CITCO plans ‘comeback’

Board members noted that the significant revenue dip at Hotel Mountview in Sector 10 was largely due to competition from recently opened private hotels, including both managed and independently operated properties

In a bid to compete with private players in the tourism industry, the board of directors of the Chandigarh Industrial and Tourism Development Corporation (CITCO) proposed developing a new marketing policy during a board meeting held on Tuesday.

CITCO is also planning to leverage social media to promote its hotels and services. (HT File Photo)

The meeting, held in the presence of CITCO chairman Ajay Chagti, saw members raise concerns over declining room occupancy rates and the subsequent drop in hotel profits, a significant worry for the body.

CITCO officers, who recently visited Kerala to study its tourism policies, presented their findings to the board. The board, following the presentation, decided to introduce a competitive marketing policy aimed at strengthening CITCO’s position against private players.

The board resolved to enhance guest experience and satisfaction by reviewing the services provided at CITCO hotels and considering guest ratings on social media platforms. It was suggested that the sales team should control the distribution of rates and discounts, allowing them to quote prices based on seasonal demand rather than past discounts.

Also, it was proposed to include establishing a credit policy, ensuring timely delivery of bills, and following-up on payments to prevent post-conference disputes. Increasing revenue from banquets and promoting hotels for residential conferences were also highlighted as key focus areas.

CITCO a step behind private hotels

The tourism development body is also planning to leverage social media to promote its hotels and services.

However, some customers believe CITCO hotels need to improve the quality of their products and services by adopting best practices from private hotels, which often have better-trained staff, superior materials, and better standard operating procedures- areas where CITCO hotels currently lag behind.

The board also decided to renovate rooms at Hotel Mountview, Sector 10, and Hotel Shivalikview, Sector 17.

Board members noted that the significant revenue dip at Hotel Mountview was largely due to competition from recently opened private hotels, including both managed and independently operated properties. Hotel Mountview, a five-star hotel that opened in 1983, was a market leader until 2004-2005.

Established under the Companies Act, 1956, on March 28, 1974, CITCO has played a critical role in industrial and tourism development of the city. Over the years, it has taken over the management of several hotels, including Mountview, Shivalikview, and Parkview, Sector 24. The body also operates Chef Lakeview at Sukhna Lake, Baithak restaurant at Kalagram, and several petrol pumps in the city.

However, amid rising competition from growing number of private hotels and restaurants in the city, the corporation has run into financial difficulties.