As the BRICS Summit approaches, Delhi's luxury hotel industry is experiencing a severe squeeze on room availability and a substantial increase in costs; several well-known establishments are either charging rates in the six figures per night or displaying no vacancies on important dates, according to a report.
A review of hotel booking websites for September 11–13 revealed that the Taj Mahal and Taj Palace in New Delhi were unavailable, and The Oberoi in New Delhi was partially sold out. Reservations were not being accepted for the designated dates at the Leela Palace New Delhi, news agency PTI reported.
ALSO READ: 350 Meetings, High-Level Engagements: India Prepares To Host 18th BRICS Summit On September 12-13
The extraordinarily high rates for rooms at establishments like Shangri-La Eros New Delhi and ITC Maurya New Delhi highlighted the premium being paid for lodging in the capital during the September 12–13 Summit.
As participants and other guests come ahead of the Summit and stay longer, the two-day geopolitical event is effectively compressing demand across a number of days, further straining central Delhi's accommodation supply.
For tourists, business travellers, and families with planned excursions to the country's capital, the expansion may result in noticeably increased lodging expenses. They might, therefore, have to decide between paying more for more upmarket accommodation, looking for hotels outside of central Delhi, rescheduling their trip, or selecting less costly lodging.
The BRICS Summit comes at a time when Indian hotels are looking to events-led travel and domestic demand to offset a challenging period for international travel amid geopolitical tensions, including the West Asia conflict.
"September is showing stronger momentum, with average room rates across our portfolio pacing more than 25 per cent higher year-on-year.
"The upcoming BRICS Summit in New Delhi is contributing to heightened demand, particularly in the days around the event, with shorter booking windows further supporting rate growth," PTI quoted Nikhil Sharma, managing director & COO, South Asia, Radisson Hotel Group, as saying.
"We expect demand to remain strong as the summit approaches, with more travellers likely to make last-minute bookings closer to the event dates," he added.
Large international and domestic events are particularly significant for the luxury and meetings, incentives, conferences and exhibitions segments, which typically benefit from concentrated demand for rooms, meeting spaces and other hospitality services.
ALSO READ: 5-Star Lapses: Cockroaches, Expired Food Found In FSSAI Raid At JW Marriot, Andaz Delhi
Consequently, the Summit is turning into a significant source of demand for Delhi's hotel sector. The upper end of the market, where room inventory is very tiny and concentrated close to significant economic and diplomatic districts, is where this influence is most apparent.
However, the sharp pricing should not be construed as a fixed market rate because hotel tariffs and room availability are dynamic and subject to sudden changes based on reservations, cancellations, and hotel inventories.
(With PTI Inputs)
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
