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Step Inn Cuts Prices by 40% During Winter Season to Maintain Occupancy

STEP INN

Kazbegi-based hotel Step Inn was forced to reduce room rates by 40% during the winter season to boost demand. Founder Ani Alibegashvili told BM.GE that while winter is traditionally a low-demand period for the region, interest always spikes between December 25 and January 10. Current room rates, including breakfast, range from GEL 180 to GEL 250, significantly lower than last year.

Alibegashvili noted that despite the challenging season, New Year’s dates were highly successful, with the hotel reaching 90% occupancy. The price adjustment played a key role in attracting guests. However, she emphasized that winter operations are costly for mountain hotels, as utility expenses double or triple, making profitability difficult and shifting the main focus toward retaining staff.

According to her, around 60% of hotels, guesthouses, and cottages in Kazbegi do not operate in winter, which impacts overall regional occupancy. Infrastructure issues, such as road closures, frozen water systems, and electricity problems, further complicate travel for visitors. As a result, Step Inn often informs guests in advance about possible road closures to help them plan accordingly.

Alibegashvili believes the long-awaited Kazbegi–Kobi tunnel, whose opening has been delayed multiple times, will transform Kazbegi into a year-round destination. Once operational, it will significantly ease travel for both Kazbegi and Gudauri visitors. The tunnel is expected to be completed next year, though an exact date has not yet been announced.

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