Service consistency in remote tourism circuits is coming under pressure as commercial LPG supply disruptions begin to affect hotel operations, package stability, and booking confidence. Early signals indicate that operational uncertainty is beginning to influence booking behaviour.
TT Bureau
A destination is rarely lost at discovery — it is lost at hesitation. Across several itineraries, that hesitation is now surfacing in conversations that extend beyond inclusions and pricing to questions around whether services on the ground will hold. The disruption is most visible where logistics are already stretched. Pradeep Shetty, VP, FHRAI & Spokesperson, Hotel and Restaurant Association (Western India) – HRAWI, says, “The challenge of ensuring consistent LPG supply is not limited to mountain destinations alone; it is a nationwide issue impacting hospitality operations across India.” He adds that the situation is “particularly severe in remote and high-altitude regions where logistics are already complex,” with “limited or virtually no LPG supply reaching several destinations.”
Even where stock exists, allocation remains inconsistent. Shetty notes that “adequate allocation to hotels and restaurants is not being ensured,” compounding operational challenges. The impact, he cautions, extends beyond hotels to “the broader tourism value chain, including tour operators, transport providers, and local economies dependent on seasonal travel.” Despite the constraints, the immediate impact on bookings remains measured. “We are not witnessing any significant decline in bookings or widespread cancellations,” he says, but adds that “there is a definite concern among travellers regarding the availability of food and beverage services.”
Hotels are adapting in real time, deploying limited menus, induction-based cooking, and traditional methods such as firewood and charcoal to maintain continuity. Yet these adjustments underline a larger shift — where operational workarounds are quietly becoming part of standard delivery.
Hesitation reshapes booking behaviour
Nilesh Bhansali, President, TAAP (Travel Agents Association of Pune), says, “Clients are seeking more clarity and assurance before confirming their bookings.” Decision cycles are lengthening, with a visible shift towards shorter booking windows.
The strain becomes more pronounced in larger movements. Jitendra Kejriwal, Founder & CEO, Arika Tour & Travels, says, “Hotels can’t guarantee Food & Beverages services such as buffets, meals, and events. Group bookings, weddings, and MICE events become high-risk files for us.” He adds that “customer experience becomes unpredictable,” leading to “higher cancellations” and “last-minute operational surprises.”
Preparedness steadies some, exposes others
The ground situation remains contained but closely watched. Himanshu Agashiwala, Chairman, IATO – Western Region, says, “Till now, the LPG situation has not become a big issue for hotels. So, our clients are continuing as planned.”
That caution, however, is not uniform. Operators who have built operational buffers are managing continuity with minimal disruption.
Peter Lobo, Chairman – IATO Sikkim and North Bengal Chapter acknowledged the LPG shortage. “Yes, operational uncertainty at hotels is affecting bookings, though the impact across Northeast India is uneven rather than widespread. In mountain and gateway destinations linked to the region, travellers become cautious when there is news of LPG shortages,” he said. “For tour operators and travel agents, the challenge is less about outright cancellations and more about delayed decisions, slower conversions, and the need to constantly reassure clients through transparent communication and strong hotel coordination,” he added.
Vaibhav Jatia, Managing Director & CEO, Rhythm Hotels & Resorts, says, “We have not witnessed any significant decline in bookings,” attributing stability to “alternate cooking solutions such as charcoal, wood-fired systems, and ovens.”
From disruption to perception
From a broader industry perspective, the issue is beginning to shift from logistics to perception. Coney Dongre, Research Manager, Phocuswright, says, “This is becoming not just an operational issue, but also a confidence issue.” She adds, “When guests start asking about food availability before they ask about room rates, you know the market is under stress.”
That shift rarely reflects immediately in cancellations but gradually alters intent. As Dongre notes, “intent starts weakening” as uncertainty enters the experience, particularly in leisure-driven itineraries.
Rethinking energy dependence
The disruption is also exposing structural gaps in how hospitality operations are designed. Sanat Hooja, Partner, Machan Resorts, says, “Situations like the current LPG supply concerns highlight the risks of dependence on a single energy source.” He adds that such dependencies “can impact operational consistency, which, in turn, affects overall service delivery and business confidence across the value chain.”
Operational inconsistencies, particularly in essential services such as kitchens, directly shape how destinations are experienced and perceived. “Any inconsistency can impact how destinations are perceived and sold,” he notes. In the immediate term, Hooja points to “energy optimisation and efficient kitchen operations,” alongside “alternative solutions such as solar cooking” to reduce reliance on LPG. Over the longer term, he highlights the need to integrate “cleaner alternatives to build resilience.
Urgency moves beyond operations
The implications are beginning to extend into business continuity. Shetty estimates that the disruption is already resulting in “revenue losses of approximately 25 to 30 per cent across the sector,” warning that if the situation persists, it could begin to impact “bookings, events, and overall business confidence.”
He stresses that ensuring “a minimum of 50 per cent of the regular commercial LPG requirement” is critical to stabilising operations. “Any uncertainty around core services like food and beverage can have a cascading effect on travel decisions, occupancy levels, and destination appeal,” he says.
The situation, for now, sits in a delicate balance. Demand continues to move, but with sharper scrutiny. Bookings are still closing, but with longer conversations. Destinations are still being sold, but with added layers of reassurance.
