Hotel tariffs in India are set to rise in 2019, according to a forecast by American Express Global Business Travel’s Hotel Monitor 2019. The Hotel Monitor 2019 has published the price forecast for 150 key cities around the world.
Increasing visitor numbers and foreign exchange rates are among the many factors that are likely to result in an increase in average room rates across most of India. “For the first time in a decade, occupancy levels in India have reached higher than 65%, and average room rates have grown by 8% since 2008. Demand is outstripping supply with budget brands now moving into this traditionally premium-brand space,” the report said.
While supply has grown by 8%, demand is growing by twice that amount, meaning occupancy will keep increasing at a rapid pace. It is anticipated that the next 3-4 years will be a strong period for hotel growth, the report said. Hotel tariffs in Bengaluru and Hyderabad are expected to rise 4% in 2019, while tariffs are set to rise by 2% in Mumbai and Delhi. However, hotel tariffs in Chennai are expected to reduce by 3% while in Pune rates expected to remain flat.
As per the report, demand continues to rise across the APAC region, in particular India and China. “This is creating a changing travel dynamic across the region, and room availability can be a challenge in popular locations such as Singapore, Hong Kong, Sydney, Tokyo and Bangkok,” the report said.
New hotel constructions are keeping pace with increased demand, meaning rates remain favourable to buyers in most locations. Overall, room rates should continue to increase moderately through 2018, although this will vary city to city, the report added.
Economy growth
APAC economies are expected to grow by about 5.6% in 2018 and 2019, accounting for nearly two-thirds of global growth.
“As we enter hotel Request For Proposal (RFP) season, overarching global and market tendencies will play a critical role in the operational and financial success of travel programs,” Harris Manlutac, head of Global Business Consulting APAC, American Express GBT, said in a statement.
“Reviewing how others have adapted to changing business conditions provides an important opportunity to identify best strategies and ensure time and resources are utilised in the most cost-efficient way possible,” he added.
