G20 Summit and tourist influx drive hotel occupancy and room rates to pre-pandemic levels

With the imminent G20 summit, hotel demand surges as tourists flock to witness related events in metropolitan areas. Consequently, hotel occupancy and room rates have returned to pre-pandemic levels.

Due to the existing demand-supply situation, room rates have been sometimes a little higher than the pre-pandemic, he told PTI in an interview.

"I understand there is very big demand at this time from not only G20 but also from tourists and people who are coming to the metropolitan cities to see all this happening in the cities and for that demand is quite high," Bezbaruah said.

Apparently, the prices also have gone up because it is primarily a demand and supply situation in the market, he added.

He was responding to a query on what feedback Hotel Association of India (HAI) was getting from its members in terms of room rate tariffs and occupancy with regard to demand from the G20 Summit.

On the impact of the high demand on room rates and occupancy, Bezbaruah said, "Basically what I can say is that occupancy rates and the room rates are back to pre-pandemic times. In fact the room rates have been sometimes a little higher than the pre-pandemic times but the view from the industry also is that you cannot take the rates as static when everything else is dynamic." Inflation is going up, people's income level is going up and it will have some impact on the rates, he reasoned.

When asked how much the rates have gone up, Bezbaruah said, "There is nothing like a percentage increase because it's a very, very composite industry. Some of the hotels have exclusive rates because of the service they provide." Smaller and medium hotels have their own rates, he added.

On preparation for the G20 Summit, he said main branded hotels in the metropolitan cities have been in close touch with the government and all the accommodation arrangements have been worked out in consultation with the government.

"Whatever facilities are required in the room rates or other facilities have been all worked out there so there is no problem there. There is no problem with accommodation so far as the main guests are concerned," Bezbaruah said.

The G20 summit will be held in the national capital from September 9 to 10.