HAI submits a recommendation to Shri Manoj Sinha, Lt Governor, Jammu & Kashmir, raising concerns over the recent raids and unfair imposition of fines on hotels in the state. In its representation, the association pointed out that these impromptu actions by the State government were motivated by complaints of exorbitant prices and service deficiencies from tourists. It suggested that the government could have followed the path of consultation on their concerns instead. In response to the complaints raised by tourists in J&K, HAI added that in an open and free economy like India, the price is determined by the market forces of demand and supply. The hospitality industry works on the same principle and operates on a system of dynamic pricing or Best Available Rate (BAR). Several other factors that impact the price of products and services are related costs, seasonality, location, market positioning, market segments, and distribution channels among others. The hotel websites and booking aggregators display the room rates in a transparent manner and the traveler is free to choose from the options based on their budget and requirement.
