The Hotel Association of India has justified temporary price increases during major events, arguing that such adjustments are standard practice internationally rather than an isolated Indian phenomenon.

During the recent BRICS Summit, when Delhi hotel prices climbed by as much as 90%, association vice president Rohit Khosla emphasized that similar spikes occur worldwide whenever demand outstrips supply. As Executive Vice President of Indian Hotels Company Limited, he compared hotel pricing to airline fares, which also rise during peak travel periods without attracting the same level of public backlash. Khosla noted that while other sectors routinely implement such adjustments, the hospitality industry has faced criticism despite years of limited revenue growth.

Comparisons with international markets

Highlighting cities like New York, Singapore, London, and Paris, Khosla stated that Indian hotels remain unable to match those prices despite rising operational costs such as land acquisition and wages. The United Nations General Assembly served as another example where room rates surge during high-demand periods without provoking comparable controversy. Industry representatives urged state governments to implement long-awaited tourism sector incentives, observing that while 16 states had made commitments, only Rajasthan had fully delivered on them.

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KB Kachru, the association’s president and South Asia Chairman for Radisson Hotel Group, clarified that the industry was not advocating for additional subsidies or preferential treatment. Instead, he stressed the need for promised support measures to be fulfilled, pointing out that only two states had provided tangible benefits despite 17 officially recognizing tourism as an industry.

Regarding the upcoming labor code, Kachru expressed confidence that hotels would comply without issue, as they already adhere to existing regulations. Meanwhile, Khosla observed that hotel expansion was shifting toward smaller cities due to limited availability in major urban centers. Mid-range and budget properties were expanding more rapidly than luxury hotels. Experts emphasized that the government’s initiative to promote 50 new tourist destinations, paired with improved regional flights and local connectivity, would be essential to diversifying tourism beyond the few states currently generating about half of India’s visitor traffic.