As India's 77th Independence Day approaches, premium resort costs are expected to rise by 15-60% due to a projected five-day weekend from August 15-19. Hotels such as The Oberoi Sukhvilas and ITC Grand Bharat have dramatically raised their prices, with the latter starting at INR 132,000 per night. Suryagarh Jaisalmer and Narendra Bhawan Bikaner both anticipate increased occupancy and pricing. The Radisson Hotel Group forecasts a 20% increase in resort demand, driven by travellers' desire for extraordinary experiences. Despite increased last-minute rates, hotels' appealing offerings are increasing interest, contributing to robust development in India's luxury hospitality sector.
As India's 77th Independence Day approaches, an interesting trend is emerging in the luxury hospitality sector. With the holiday on 15 August falling on a Thursday and Raksha Bandhan on 19 August (Monday), a potential five-day-long weekend is on the horizon for those able to take the Friday off. This extended holiday period has led to a notable increase in rates at luxury resorts across the country, while hotels are offering discounts to retain business.
Luxury resort properties are experiencing rate increases ranging from 15 to 60%, depending on location. For example, the Oberoi Sukhvilas in Chandigarh is fully booked from 14-19 August, and its Agra location is selling ordinary rooms at INR 37,500 per night, representing a 15-25% hike over usual rates, according to Mint research. Similarly, pool view suites at the sumptuous ITC Grand Bharat in a remote section of Gurugram start at INR 132,000 per night, excluding tax, which is INR 78,000 more than their standard cost.
Other luxury estates, such Suryagarh Jaisalmer and Narendra Bhawan Bikaner, are prepared for an inflow of visitors. Sameer Mehra, Chief Operating Officer of the MRS Group, which manages these hotels, estimates a 15-27% rise in occupancies over the long weekend compared to the previous year. Mehra explained that adding one day to either side of that weekend would make it a five-day holiday. He mentioned that many travellers still used hybrid work systems, and at their resorts, they had not witnessed a drop in visitors even though foreign travel had resumed in full force.
Mehra anticipates the Suryagarh property to experience a 27% increase in visitors this holiday weekend, despite a relatively modest 10% price rise. Narendra Bhawan Bikaner anticipates a comparable increase in the number of guests, owing to its good connection to major cities and direct flights, and would experience a large 50-60% increase in room rates during this period.
Nikhil Sharma, the Managing Director and Area Senior Vice President for South Asia at Radisson Hotel Group, noted that they were witnessing nearly a 20% surge in demand for resorts and hotels compared to the previous year and anticipated that this trend would further accelerate by mid-August. He highlighted that newer destinations like Kumbhalgarh, Saputara, Pondicherry, and Mahabalipuram, along with Udaipur, Jaipur, and Agra, are gaining the most support from travelers.Sharma added that their guests were also willing to spend 20% more than in previous years on hotels that offered exceptional experiences and good value. He mentioned that the increase in bookings throughout their portfolio was promising and expressed confidence that the momentum would continue.
Despite an increase in domestic hotel pricing for last-minute bookings over the previous year, low-season incentives from hotels and luxury stays, such as free extended stays and complementary meals, are generating significant interest for businesses such as Thomas Cook India. These deals make it appealing for travellers to indulge in luxurious experiences throughout the long weekend.
The luxury hospitality sector in India is experiencing a significant boost as a result of the extended holiday period in August. The combination of strategic offers, exceptional experiences, and the willingness of guests to spend more is contributing to the surge in demand and higher tariffs, positioning the sector for strong growth in the coming months.
Inputs from The Mint
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