Hotel prices have skyrocketed in New Delhi for the weekend, as the national capital prepares to host the India AI Summit.
This has triggered fresh warnings of a growing crisis of excessive pricing during
major international events. A comprehensive survey has brought the issue to the fore, revealing that some properties are charging as much as Rs 20 lakh per night for a suite.
The survey, conducted by LocalCircles, highlights a pattern of exploitative pricing that typically accompanies major sports tournaments and global summits.
According to the data, there is a stark disparity between standard rates and those offered during high-demand periods.In central Delhi, five-star hotels witnessed prices cross Rs 60,000 per night. Even more modest four-star accommodations, which typically cost around Rs 6,000, are being marketed for over Rs 30,000 — a five-fold increase. In some instances, rates have reportedly surged by up to 10 times their standard fees as hotels capitalise on the influx of visitors.
This trend mirrors previous spikes seen during the 2023 Cricket World Cup, where prices rose three to five times the regular rate and, in Navi Mumbai, where some hotels charged Rs 5 lakh for a three-night stay during a Coldplay concert.
The survey report revealed that 57 percent of the consumers have experienced excessive charging by hotels at least once in the last three years. Of those who have faced these steep rates, 7 percent reported paying inflated prices almost every time they booked a room.
The hospitality sector’s current “free market” approach has left many feeling vulnerable. “Any time there is an international event, hotel room rates skyrocket in India with no upper limit,” the report stated, pointing out that the ministry of tourism has no regulations to protect consumers from such spikes.
The survey reported that this has led to an overwhelming demand for government intervention, with 71 percent of the respondents in favour of a price ceiling. The most popular proposal, supported by 49 percent of those surveyed, is that the maximum rate charged should be restricted to no more than twice the regular rack rate to ensure fair treatment.
To ensure these limits are respected, 74 percent of citizens are calling for the appointment of a regulatory body or government agency to oversee compliance, with a separate regulator under the tourism ministry; using the Competition Commission to monitor compliance; and empowering the Central Consumer Protection Authority to handle grievances.
The report concludes that while the hospitality sector is vital for job creation and tourism, the Centre must play a “more proactive role” to ensure the industry remains profitable without subjecting tourists and business visitors to exploitative practices.
