71% Indians want cap on hotel room rates during peak demand: Survey

With Delhi hotel rates surging ahead of the India AI Impact Summit, a survey shows most Indian consumers want a ceiling on room tariffs and stronger government action against excessive pricing

Around 70 per cent of Indian consumers want limits on how much hotels can charge for rooms during peak demand, according to a nationwide survey.

 

The findings come as room tariffs in parts of Delhi have skyrocketed ahead of the India AI Impact Summit 2026, scheduled on February 19 and 20. The event is likely to see participation from some of the biggest names in artificial intelligence (AI), including Meta’s Alexander Wang, Alphabet’s Sundar Pichai, Google DeepMind’s Demis Hassabis and Bill Gates.

 

Against this backdrop, a LocalCircles survey found that 71 per cent of consumers surveyed indicated that they are in favour of implementing a ceiling on hotel room rates.

 

When asked how such a cap should work, many respondents favoured tighter limits. Forty-nine per cent indicated that the “maximum rate charged should not be more than two times the rack or regular rate”, while smaller sections supported higher multiples or alternative mechanisms. At the same time, 23 per cent felt there should be no ceiling at all.

 

The survey stated that 57 per cent of consumers had experienced at least one instance in the past three years where a hotel charged them an “exorbitant” room rate.

 

Apart from this, 74 per cent of consumers indicated that they are in favour of a government body being appointed to resolve complaints related to profiteering by hotels. “Thirty-nine per cent of respondents favour the government establishing a ceiling structure and having a separate regulator under the Ministry of Tourism to monitor compliance and look into complaints,” the survey stated.

 

The survey findings were based on 34,000 responses from consumers across 307 districts, spanning metros, smaller cities and rural areas.

 

How is Delhi’s hotel landscape shaping up for next week?

Ahead of the India AI Summit, demand for luxury hotel rooms has surged sharply, pushing rates up through the week starting February 16. Some premium suites are priced at up to ₹30 lakh per night. For instance, the Taj Palace reportedly listed a luxury suite with a king bed and pool view at around ₹90,000 per night, excluding taxes. However, for February 18, the hotel quoted ₹25,00,000 per night for its Garden Luxury Suite with a private terrace. At present, most of these luxury suites are sold out, according to the hotel’s website.

 

Similarly, the starting price for a base category room at The Oberoi, the closest luxury hotel to the event venue Bharat Mandapam, is around ₹5.6 lakh per night, up from about ₹1 lakh at present, including taxes, according to listings on MakeMyTrip.