Representatives from the hospitality sector, including members of hotel associations met Tourism Minister Gajendra Singh Shekhawat during the last two days amid reports of skyrocketing hotel room tariffs ahead of the upcoming India AI Impact Summit, scheduled at Bharat Mandapam here from February 16-20.
Confirming the development, Hotel Association of India (HAI) said in light of recent articles reporting on hotel pricing in Delhi during the AI Impact Summit, a meeting was held by the Union Minister for Tourism and Culture Shekhawat.Industry sources said almost all standard rooms, which account for about 70 percent of the inventory in top hotels in the national capital have been sold out.With demand surging, not just because of the AI summit but also due to wedding season and the ongoing T20 cricket world cup, room tariffs are already priced high.There has been an escalation in prices for last-minute bookings.
An industry executive, requesting anonymity, said high prices of Rs 25-30 lakh that have been reported in the media are for luxury and presidential suites, which offer multiple rooms and not for standard rooms.As such room tariff is demand driven, the executive said, adding for some of the block bookings of standard rooms that were done in advance for the AI Summit in rates ranged between Rs 10,000 and Rs 12,000.The HAI said a quick check with some of its member hotels reveals that weighted average room rates are ranging between Rs 40,000 and Rs 60,000 per night during the summit.According to an official release last week, the summit has garnered strong interest from the global community, with over 35,000 registrations received ahead of the event.
"For the AI Impact Summit, a substantial majority of hotel inventory was contracted well in advance across multiple segments at pre-negotiated rates. As a result, the effective average base room rates remain significantly lower than those reflected in some recent reports."The limited inventory currently available is largely confined to luxury and suite categories and is being priced in line with the usual market dynamics during periods of exceptionally high demand," the association stated.
It argued that global events such as the AI Impact Summit naturally create a surge in demand, particularly at a time when there is a shortage of hotel rooms in certain categories. "As Delhi approaches full occupancy even with 12-odd wedding dates and the Cricket World Cup during the month, demand remains strong across all categories, including suites, resulting in many hotels being sold out," HAI stated.
Consequently, reported rates figures often reflect luxury rooms, deluxe, luxury and presidential suites, which command higher rates due to additional services and inclusions, it added.
