As the countdown to 2026 begins, India's hospitality sector is witnessing a significant surge in demand, leading to a sharp increase in room tariffs for the year-end period. Hotels across the country are rolling out an array of exclusive attractions—from morning yoga sessions and DIY cocktail stalls to recovery brunches—to entice guests. However, these curated celebrations come with a hefty price tag, with rates climbing substantially compared to last year.
Double-Digit Tariff Hikes Across Leisure and Urban Hotspots
Hotel operators have confirmed to ET that New Year rates for 2026 are broadly 10–20% higher than the previous year. This upward trend reflects robust demand in both leisure destinations and major metropolitan centres. Madhav Sehgal, Senior Vice-President and Head of Sales and Operations at Leela Palaces Hotels and Resorts, noted that prices for select festive getaway packages have risen by approximately 20%.
He highlighted that heritage cities like Udaipur and Jaipur, along with urban markets such as New Delhi and Gurugram, are experiencing strong bookings driven by domestic travellers, international visitors, and premium festive events. The luxury chain is hosting Picante-themed celebrations, baking workshops, and guided yoga sessions across its properties.
The trend is consistent with other major hotel groups. Nikhil Sharma, Managing Director and COO (South Asia) for Radisson Hotel Group, anticipates a 15–18% rate growth at destinations including Jawai, Kumbhalgarh, and Jodhpur. "In the South, our resort in Mamallapuram is seeing a nearly 20% uptick in rates for the New Year dates," Sharma added.
Industry Resilience and Evolving Guest Experiences
Demand indicators for December remain firm across the hospitality industry. KB Kachru, President of the Hotel Association of India, stated that average daily room rates are up 10–12% year-on-year. "Although we witnessed a bit of regional softness mid-year, the industry showed remarkable resilience and is ending 2025 on a strong note," Kachru remarked.
Travel booking platforms are mirroring this surge. Cleartrip reported a two-and-a-half times increase in hotel bookings for the year-end season compared to 2024. A spokesperson pointed out that higher average spends per traveller are driven not just by prices but by demand for longer stays and immersive experiences.
To differentiate themselves in a crowded festive market, hotels are designing more elaborate stay packages. For instance, the Novotel Hyderabad Convention Centre has introduced a 'recovery brunch' and extended happy hours from noon to 8 pm. "Given the holiday season and year-end travel mood, we wanted to elevate the guest experience by offering longer, more relaxed hours for them to unwind," a spokesperson explained.
Luxury Curations and Competitive Pricing Strategies
Luxury and boutique properties are focusing on unique culinary and wellness experiences. In Chennai, ITC Grand Chola is offering a New Year buffet inspired by global night markets alongside a 13-course Avartana dining experience. An ITC spokesperson told ET that while rates are similar to last year in some hotels, there are "entirely new curations" offering unique experiences at competitive pricing.
At Ronil Goa–JdV by Hyatt, General Manager Pratiti Rajpal mentioned do-it-yourself bars and spirit-forward beverage concepts for guests. Internationally, Six Senses Bhutan is extending special rates for Indian citizens for a 'mindful' celebration package featuring TsaTsa making, butter lamp prayers, aqua meditation, and cocktail masterclasses.
The festive rush is benefiting mid-scale and leisure-focused hotels as well. Jatin Khanna, CEO of Sarovar Hotels, reported a 10% rate increase year-on-year, with strong demand in Jim Corbett, Puducherry, Agra, and Jaipur. Similarly, Leisure Hotels Group has raised New Year rates by 10–12%, citing high demand for resort stays.
City hotels are justifying their festive pricing with recent upgrades. Anmol Ahluwalia, Area Director, Operations and General Manager at Taj Mahal, New Delhi, stated, "Our festive rates are in line with the significant upgrades we have introduced. These include transformed rooms and suites to advanced, state-of-the-art air purification systems installed across the hotel, and curated gourmet experiences."
The overall picture for New Year 2026 is clear: robust demand is empowering hotels to command premium prices, while guests are increasingly seeking—and paying for—unique, experience-driven celebrations.
