- HAI, minister to review Delhi hotel rates for AI Impact Summit.
- Survey finds consumers concerned over high hotel rates, seeking regulation.
- Rates balance between market pricing and consumer protection.
THE HOTEL ASSOCIATION OF India met with Tourism and Culture Minister Gajendra Singh Shekhawat to review hotel rates in Delhi ahead of the AI Impact Summit from Feb. 16 to 20. A nationwide survey recently highlighted consumer concerns over high rates during major events and calls for government regulation.
As Delhi prepares to host AI experts, media reports cite hotel rates reaching Rs 1 lakh or more per night for standard rooms. According to The Leela Palace website, a one‑night stay on Feb. 16 costs about $3,600 for a “Run of the House” room and about $3,610 for a ‘Royal Club Room’. The same rooms on March 15 are around $662 and $486 per night, respectively, according to The Indian Express.
However, HAI said these figures are misleading, as most hotel rooms were pre-booked at negotiated rates. Checks with member hotels show weighted average rates during the summit range from $482 to $723 per night, the association said in a statement.
HAI does not regulate member pricing but is collecting data to provide market-backed insights, the association said, adding that such events create a demand surge, especially when hotel inventory is limited.
“As Delhi approaches full occupancy, even with around 12 wedding dates and the Cricket World Cup taking place, demand remains strong across all categories, including suites, resulting in many hotels being sold out,” the association said.
Consequently, reported rates often reflected luxury, deluxe and presidential suites, which command higher prices due to additional services and amenities, HAI said.
“For the AI Impact Summit, a substantial majority of hotel inventory was contracted well in advance across multiple segments at pre-negotiated rates,” the association said. “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 usual market dynamics during periods of high demand.”
Consumer concerns
A LocalCircles survey of more than 34,000 respondents from 307 districts shows consumer frustration over unchecked price surges. Around 74 percent want government intervention to cap hotel rates during major events and 57 percent reported being overcharged at least once in the past three years.
The survey noted hotels near DY Patil Stadium charged up to about $5,450 for three nights during Coldplay’s concert and rates near Cricket World Cup venues rose three to five times the normal rack rate.
Respondents said hotel rates should not exceed twice the regular rack rate, with few supporting up to five times. Overall, 71 percent favored a price ceiling.
On enforcement, 74 percent supported a government body to handle profiteering complaints, with oversight suggested under the Ministry of Tourism, the Competition Commission, or the Central Consumer Protection Authority.
LocalCircles said the hospitality sector supports free-market pricing, but consumers need safeguards during peak periods. The report urged policymakers to establish a pricing framework that ensures affordability while maintaining market competitiveness.
Balancing market dynamics
The debate over hotel rates in Delhi highlights the tension between market pricing and consumer protection, especially during events like the AI Impact Summit. HAI said average rates are reasonable and only luxury rooms command higher prices, but consumers report sharp price spikes and seek regulatory oversight.
The findings from the industry and the survey highlight the need for data and policy measures to ensure India can host events without pricing out participants, said Jishnu G Kannan, a software developer from Toronto.
A night at The Imperial Hotel on Feb. 16 will cost $2,175 plus $392 in taxes, The Economic Times recently reported, citing a travel booking site. Luxury and upper-upscale hotels are sold out or nearly full, while others are charging high rates.
