Hotel tariffs are likely to increase in 2019 as the demand exceeds supply: AMEX

Hotel tariffs in India are set to increase in 2019, according to a forecast by American Express Global Business Travel’s Hotel Monitor 2019. The Hotel Monitor 2019 has published the price prediction for 150 key cities around the world.

Average room rates have increased across India due to factors like the increase in the number of the visitors and foreign exchange rate.

For the first time since the 2008 occupancy level has gone up by 65% and average room rate has increased by 8%. Demand is exceeding supply with budget brands shifting into traditionally premium- brand space according to reports. Supply has grown by 8% whereas the demand is growing by twice that amount which means occupancy will keep increasing at a rapid pace it is anticipated that the next 3-4 years will be a golden period for hotel growth according to report.

Hotel tariffs in major cities are predicted to rise by:

4% in Bengaluru and Hyderabad.

2% in Mumbai and Delhi.

Whereas 3% reduction in Chennai is predicted and Pune rates expected to remain flat.

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