?December was quite a wash-down for us because of the Mumbai attacks. About 60 per cent of the group bookings have been cancelled since then because of the economic slowdown in the US and the UK, which account for maximum foreign tourist arrivals,? Manju Sharma, marketing director of Jaypee Hotels, told Financial Chronicle.?We are now looking at the domestic market. To save money, Indian households are now thinking of domestic travel?, she added.



The chain has initiated several cost-cutting measures to beat slowdown blues. It is cutting down on miscellaneous expenses and has frozen air-travel for senior staff. In another such initiative. the hotel chain has struck a bargain for purchasing food items.?We have reduced room rents from Rs 12,000 to Rs 9,000 for the first quarter of 2009,? Sharma said.

The company closed 2007-08 with a top-line growth of 27 per cent at Rs 173 crore. However, the company does not anticipate any growth in revenues in the current financial year. ?I think growth will be zero this year because trends are not encouraging. Our revenues in 2008-09 are likely to remain unchanged,? Sharma added.

The hospitality firm is in the process of building its fifth hotel in Greater Noida, Jaypee Greens Spa Resort, with 200 rooms. The resort is planning a tie-up with Thailand-based spa chain ?Sixth Sense?. The resort is expected to be operational before the start of the Commonwealth Games in 2010.