OnDemand WTP Pricing Research

Travelling? Here is a big money setback for you; prices set to double | Zee Business

Hotel companies are set to increase room rates by up to 20% as the business season kicks in a few weeks from now. Certain key markets are expected to see a higher double-digit increase in room rate, with the national average being between a high single digit and a lower double digit number.

Speaking with DNA Money, Patu Keswani, chairman and managing director, Lemon Tree Hotels Ltd, said absorption of the massive hotel room supply across India is still in process.

“This year, pricing will go up 15-20% in select markets only. Rates will go up between 7% and 15% in some markets while it will remain flat or increase marginally in a few other markets.”

For instance, Delhi will see a considerable hike in room rates as supply has been absorbed there, while Jaipur and Ahmedabad may not see a significant price hike, he said. “Also, hotels in the Hinjewadi area in Pune will not see a price hike, but city centre hotels will hike rates. Players in different markets will adopt a different re-pricing strategy based on conditions there,” said Keswani, adding that over the next two years all the new supply of hotel rooms across the country will get absorbed.

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Travelling? Here is a big money setback for you; prices set to double | Zee Business.