The hotel industry is witnessing decline in occupancy from the business travel segment. Sectors like manufacturing and banking have not been able to make up for the slowdown in the IT sector.

Except for the top management people, most of the travelling IT professionals have been using serviced apartments than hotels. Some of the sectors that have helped the hospitality industry in the occupancy front are manufacturing and banking. However, the growth in these segments has not been able to compensate for the slowdown in IT as per a report in Financial Chronicle.

Morsoever, not much activity has been happening around meetings, incentives, conferences and entertainment (MICE) segment. The addition of new rooms and surplus inventory levels has been plaguing occupancy in many cities.