G20 Summit and tourism drive hotel rates to pre-pandemic levels

Hotel Association of India Secretary General MP Bezbaruah has revealed that the G20 summit's considerable demand in India, coupled with tourists flocking to major cities to witness related events, has propelled hotel occupancy and room rates back to levels seen before the pandemic.

Bezbaruah mentioned in an interview with PTI that due to the prevailing demand-supply dynamics, room rates have occasionally surpassed pre-pandemic rates.

"I understand there is very big demand at this time from not only G20 but also from tourists and people who are coming to the metropolitan cities to see all this happening in the cities and for that demand is quite high," Bezbaruah said.

He clarified that the price escalation is primarily a result of the prevailing market's demand and supply equilibrium.

The context for this discussion was the feedback the Hotel Association of India (HAI) was receiving from its members regarding room rates and occupancy, particularly in light of the G20 Summit's demand.

Prices reach pre-pandemic levels

Addressing the effect of this high demand on room rates and occupancy, Bezbaruah mentioned, "Basically what I can say is that occupancy rates and the room rates are back to pre-pandemic times. In fact, the room rates have been sometimes a little higher than the pre-pandemic times but the view from the industry also is that you cannot take the rates as static when everything else is dynamic."

Bezbaruah rationalised that inflation is on the rise and people's income levels are increasing, thereby inevitably influencing rates.

When inquired about the extent of rate increases, Bezbaruah explained, "It's not a matter of percentage increase, as it's an intricate industry. Different hotels have distinct rates based on the services they offer."

He further noted that smaller and medium-sized hotels have their own individual rate structures.

Regarding preparations for the upcoming G20 Summit, Bezbaruah mentioned that major branded hotels in metropolitan cities have been in close coordination with the government. Accommodation arrangements have been finalised in consultation with the government to ensure smooth lodging for attendees.

"All required facilities in terms of room rates and other amenities have been sorted out, leaving no concerns. As far as the principal attendees are concerned, accommodation is well in order," Bezbaruah assured.

The G20 Summit is scheduled to take place in the national capital from September 9 to 10.

(With PTI inputs)