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Hotel Guests in India Paid 7% More for Hotel Rooms in 2012

According to's Hotel Price Index (HPI)

By P.R. Sanjai, Mint, New DelhiMcClatchy-Tribune Regional News

March 13, 2013--MUMBAI -- Hotel guests in 2012 paid an average 7% more for hotel rooms across India for a national rate of Rs.6,141 per night, according to's Hotel Price Index (HPI). The index is based on bookings made on and prices paid by customers, rather than advertised rates.

HPI said prices rose in 21 of the 33 destinations covered by the report.

In 2012, the fall in the value of the rupee helped to increase domestic tourism numbers as holidaymakers preferred to vacation at home rather than visit more expensive destinations abroad.

In addition, the extension of India's visa on arrival policy had a positive impact and there was an influx of foreign visitors, with the majority coming from the US and the US. The so-called MICE market that includes meetings, incentives, conferencing and exhibitions, also grew, according to the report.

As a result, occupancy rates rose so there was less need for hotels to offer discounts, in spite of new hotel openings, particularly in the mid-market range.

India's two largest cities occupied two of the top three places in the price table with Mumbai at the top with Rs.8,088 after a 5% rise and Delhi at Rs.6,871, up 10%, in third place. Sandwiched between them was Udaipur at Rs.7,683, despite a 3% fall.


(c)2013 the Mint (New Delhi)

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Distributed by MCT Information Services

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