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In HSRP (Hot Standby Router Protocol) tracking, when a monitored interface fails, the priority of the router is decremented. This is significant because HSRP uses the concept of priority to determine which router in a group will act as the active router, responsible for forwarding traffic for the virtual IP address.

When an interface that is tracked goes down, HSRP assumes that the router is less capable of handling traffic, and thus the priority is reduced. This reduction could lead to this router losing its status as the active router, allowing another router with a higher priority to take over and ensure that traffic can continue to flow smoothly.

It's important to note that the priority itself does not remain the same or increment upon an interface failure. Also, the interface is not disabled; instead, tracking helps in managing the router's operational status based on the condition of its interfaces. By decrementing the priority, HSRP helps maintain high availability and reliability in the network.