As room prices zoom to a lakh per night in Delhi next week, 74% consumers demand that Government establish price ceilings

February 10, 2026, New Delhi: Consumers are reporting prices of INR 20 lakh per night for a hotel suite in New Delhi as the city gets ready to host India AI Summit. Prices at most 5 star hotels in the Central Delhi area, where the event is to be held are over INR 60,000 a night while 4 stars which typically go for INR 6000 a night are selling their rooms for over INR 30,000 a night.

Similarly, last year, some of the hotels in the vicinity of DY Patil Stadium in Navi Mumbai where Coldplay performed, charged up to INR 5 lakh for three nights according to consumer complaints. Cricket world cup matches also drive up hotel prices 3-5 times of the regular rack rate as observed during the 2023 world cup. Any time there is an international event, hotel room rates sky rocket in India with no upper limit. The Ministry of Tourism has no regulation in place that limits hotel room prices to not go above a particular rate say 2-3 times of the rack rate and as a result there is zero consumer protection.

The issue has regularly been reported on LocalCircles since 2021 and to understand it better, LocalCircles conducted a nationwide survey which received over 34,000 responses from consumers located in 307 districts of India. 67% respondents were men while 33% respondents were women. 47% respondents were from tier 1, 30% from tier 2 and 23% respondents were from tier 3, 4 and rural districts.

57% of consumers surveyed indicated that there have been at least one or more instances where a hotel had charged them an exorbitant price for the room

The survey first asked consumers, “In the last 3 years, how many instances have you had where a hotel charged you an extraordinarily higher rate for room(s)?” This query received 11.628 responses with 57% of consumers surveyed indicating that there have been at least one or more instances where a hotel had charged them an exorbitant price for the room. The data shows that 7% of respondents had paid steep rates 75-100% of the times they had booked; 19% paid more than normal rates 50-75% of the times; 12% had such an experience 25-50% of the times they booked hotel accommodation and 19% had such an experience less than 25% of the times. However, 38% of those surveyed indicated that they had never had such an experience in the last 3 years while 5% of respondents did not give a clear response. To sum up, 57% of consumers surveyed indicated that there have been at least one or more instances where a hotel had charged them an exorbitant price for the room.

71% consumers surveyed indicated that they are in favour of implementing a ceiling for hotel room rates

The survey then asked consumers, “How should a ceiling be implemented on hotel room rates?” This query received responses from 11,575 consumers with 71% indicating that they are in favour of implementing a ceiling for hotel room rates (ceiling that is a multiple of hotel’s own base room rate). The data shows that 23% of those surveyed feel “there should be no ceiling on hotel room rates”; 11% feel that “the maximum rate charged should not be more than 5 times the minimum rate charged”; 49% indicated that the “maximum rate charged should not be more than 2 times the rack or regular rate”; 11% indicated that “other mechanism should be used”; and 6% of respondent did not give a clear response. In short, 71% consumers indicated that they are in favour of implementing a ceiling for hotel room rates.

74% of consumers surveyed indicated that they are in favour of a government body being appointed to resolve complaints related to profiteering by hotels

Coming to the question of price regulation, the survey next asked consumers, “How should India regulate hotel prices?” This query received 11,324 responses with 74% of consumers surveyed indicating that they are in favour of a government body being appointed to resolve complaints related to profiteering by hotels. The data reveals that 26% of respondents feel government or any regulator should not be appointed to regulate hotels; 22% of respondents however favour that the government should “establish ceiling structure and have the competition commission monitor compliance and look into complaints''; 39% of respondent favour the government establishing a “ceiling structure and have a separate regulator under Ministry of Tourism to monitor compliance and look into complaints''; and 13% indicated that the government “should establish ceiling structure and have the Central Consumer Protection Authority to monitor compliance and look into complaints''. To sum up, 74% of consumers surveyed indicated that they are in favour of a government body being appointed to resolve complaints related to profiteering by hotels.

In summary, the survey shows that 57% of consumers have had to shell out an exorbitant price for a hotel room on one or more instances in the last 3 years. The survey has also revealed that while 71% of respondents are in favour of implementing a ceiling for hotel room rates; 49% o would like the “maximum rate charged should not be more than 2 times the rack or regular rate”. Though the hoteliers lobby would prefer a free market and competition to help fix the room tariff, consumers don’t share the same view with 74% of respondents indicating that they are in favour of a government body being appointed to resolve complaints related to profiteering by hotels. Given the important role played by the hospitality industry in the economy, particularly job creation and promotion of tourism, the government needs to play a more proactive role to ensure both the industry and tourists don’t suffer. While hotels need to be profitable, they also need to provide good service at reasonable rates for the tourists and business visitors.

LocalCircles plans to share this survey report with the policy makers in the hope that the government will put in place a policy that regulates hotel room rates in a way that enables affordability for consumers and profitable growth for hotels.