Hotels should follow airlines-like dynamic pricing model: Deeksha Suri

LaLiT ED Deeksha Suri says hotels must adopt airline-style dynamic pricing as the group consolidates, refinances and prepares for calibrated, asset-light expansion in emerging markets

Hotel tariffs should move to an airline-style model of real-time dynamic pricing rather than depend on flat seasonal rates, says Deeksha Suri, executive director (ED) of The LaLiT Suri Hospitality Group. 

Dynamic pricing, Suri argues, is now essential for achieving monthly revenue targets in a market driven by micro shifts in demand across conferences, weddings and city calendars. 

“Pricing should be dynamic. Just like airfares from Delhi to Mumbai fluctuate by weekday, month, or demand, hotel pricing must also reflect real-time demand and supply,” she told Business Standard over a virtual call. 

Suri’s tariff stance sits within a broader three-pronged strategic mandate of “consolidate, strengthen, and then scale” over the next three to five years. 

The New Delhi-based group, operating 12 luxury hotels, palaces and resorts under The LaLiT brand and mid-segment hotels under The LaLiT Traveller brand across India, is prioritising completion of its refinancing, unlocking liquidity and reinvesting in its existing portfolio.  

On refinancing, the group is shifting from high-cost lenders to lower-cost ones and expects interest rates to turn more favourable, easing repayments. 

At an industry level, Suri notes that hospitality’s cost of capital is still slightly higher than infrastructure, but she is hopeful that infrastructure status may eventually be gran­ted to hotels. This would further bring down funding costs even as manpower and other operating expenses continue to rise. 

Once the consolidation cycle is complete, expansion is expected to be calibrated and largely asset light. It would be led by management contracts in Tier-II and III markets where the brand has already identified partners and is in advanced discussions, Suri added. 

 

The development strategy combines upgrades, technology enhancements and product improvement at existing hotels.

On being asked about the aggressive expansion of international chains in India, Suri said the development should not be seen as a threat. 

From a demand–supply perspective, Suri argues that India has room for “many more hotels” and that competition helps keep the industry sharp. 

On the regulatory and fiscal side, Suri says goods and services tax (GST) slabs, including the ₹7,500 threshold, have limited impact on the group’s tariff strategy. 

 

This is because business-to-commerce (B2C) pricing is typically above that level and only about 3 per cent of contracted inventory sits in that band. 

Dynamic pricing, in her view, is unavoidable given seasonality and event-led spikes, with the group monitoring competition on a daily basis. 

Suri said that compliance with upcoming labour codes may not pose a challenge as it has put inclusivity and progressive HR policies at core of operations from the beginning. 

However, the bigger constraint, Suri admits, is skilled leadership especially at senior levels, with most large and small chains facing post-pandemic leadership shortages. 

The group is responding by building an internal pipeline through coaching, fast-track programmes and structured exposure for high-potential managers, supplemented by its in-house school of hospitality.