- Hotel rates peak in post-Diwali period.
- Lonavala records the highest average rates.
- Premium hotel rates remain high in November.
“India’s festive travel calendar is spreading across multiple periods, with travelers combining traditional celebrations in their hometowns with short leisure getaways,” said Vijeta Soni, Sciative’s cofounder and CEO. “Destinations such as Goa, Ooty and Mahabaleshwar are seeing growing demand for these trips, while the strongest rate pressure comes after Diwali.”
Mid-scale hotel rates averaged $96.93 from Oct. 25 to 31. They rose to $109.86 from Nov. 6 to 10, up 13.34 percent, and are expected to reach $123.05 from Nov. 11 to 15. This is 26.94 percent higher than the pre-Diwali average. Mid-scale rates are expected to average $122.68 during the second half of November.
Premium hotel rates are also rising, from $272.45 before Diwali to $299.83 during the festival period. Premium rates are expected to reach about $327.59 from Nov. 11 to 15 and average $337.72 during the second half of November.
Hotel rates vary by destination
Lonavala has the highest average hotel rate among the destinations listed, at $311.74. Five-star hotels average $441.34, while three- and four-star hotels average $241.97. Mahabaleshwar has an average rate of $213.65.
In Goa, the average rate is $163.99, with five-star hotels at $314.22 and mid-scale properties at $97.25. Ooty averages $166.15, while Coorg averages $154.17 and Mussoorie $171.31. In Darjeeling, mid-scale hotels average $71.68, compared with $326.41 for five-star properties.
Hotel rates are lower in the pilgrimage destinations. Haridwar averages $57.28, with mid-scale hotels at $43.64 and five-star properties at $165.49. In Rishikesh, mid-scale hotels average $78.88 and five-star properties $257.49. Tirupati has an average rate of $51.15, while Madurai averages $72.68 and Puri $92.27.
Hotel rates are expected to stay high after Diwali, with wedding season and winter travel adding to demand. They may need to consider this continued demand when setting their rates for the second half of November.
India will need more hotel rooms as travel demand grows. A CBRE report estimates the country will need another 190,000 to 210,000 rooms by 2035, requiring 120 million to 125 million square feet of new hospitality space. Major cities account for about 35 percent of branded hotel rooms but generate around 50 percent of hotel revenue, with occupancy close to 70 percent.
