Hotel prices in India rise 15%-20% so far in 2023: Here's why

Hotel prices across most destinations have seen a 15-20 per cent increase in the last six weeks. A combination of the wedding season, return of corporate travel and events has seen a significant increase in demand leading to a rise in prices. “Post the New Year holidays we at Apeejay Surrendra Park Hotels Limited have seen a substantial increase in the demand and average rates across India. The rates have gone up by at least 15-20 per cent. This is mainly attributed due to major events happening across the cities -- Auto Expo and PlastIndia in New Delhi, Formula E in Hyderabad, Aero Show in Bengaluru, Leather Fair and Chennai Open ATP in Chennai. To add to the above, the G20 Summit happening across the country and some travel trade fairs across various cities have led to an increase in demand,” said Yazad Marfatia, Regional Director and Head of Sales, Apeejay Surrendra Park Hotels Limited. He added that January and February are considered to be the best months not only for leisure travel but also business travel and they have seen an increase in corporate travel. “Weddings too, are adding to the overall increase in demand.”

An increase in prices is also being seen across price categories. Interglobe Hotels, which operates 19 Ibis hotels, the budget category hotels of the Accor Group, across 13 cities in India, has also seen a rise in price. “IGH portfolio starting February have been witnessing strong demand from corporate travel, G20 events, MICE and sporting event across the country. We are seeing almost 15 per cent rate growth across our portfolio over the rates achieved in the month of January,” said Manoj Agarwal, Head–Asset Management, InterGlobe Hotels.

Luxury hotels in leisure destinations such as Udaipur and Goa have also seen an increase in price, but that is more because of the wedding season. “We have seen an upward increase in room tariffs in the first quarter of this year due to high demand coming from weddings and other high-end corporate groups. We have managed to increase our room rates by 15-20 per cent over and above our budgeted numbers due to the surge in demand within the super luxury hotels in Udaipur,” said Gautam Khanna, Director of Operations, Raffles Udaipur. He added that the hotel will revise its prices post-March 15 as demand is likely to go down in the summer months. “However, May and June are looking optimistic with a large number of wedding dates,” said Khanna. So, prices at Raffles Udaipur may rise again in those months.