With the exciting ICC ODI World Cup 2023 kicking off on October 5 in India and continuing till November 19, in combination with Durga Puja, there has been a significant hike in hotel and airline prices.
According to an independent US multinational investment bank and financial services company – Jefferies – prices have increased on average by 150 percent for select hotels, while prices have increased by 80 percent for selective flights, especially on match days in India, it was reported. Redbox Global India On September 27th.
Apart from the 2023 World Cup, this period also coincides with a seasonally strong third quarter for the hospitality sector, and the same is likely to benefit the hotel and airline sectors (including IHCL and Indigo) in the third quarter, the company said.
2023 World Cup schedule:
During the 46 days, 48 matches will be played in 10 different cities in India, with 10 countries participating. From October 5 to November 19, 5 matches will be held in Ahmedabad, Bengaluru, Chennai, Delhi, Dharamsala, Kolkata, Lucknow, Mumbai and Pune, and 3 matches in Hyderabad.
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High hotel and flight prices:
According to Jefferies, hotel and flight rates across venues for matches involving India have increased by 150 percent on average for a la carte hotels, while 80 percent for a la carte flights, compared to the week before match day with some prices as high as 13x and 5x on average. straight. The report added that for non-Indian match days, the price hike is less compared to normal days.
Read also: ICC World Cup 2023: Pakistani team gets visa 48 hours before travel, allowed to enter India
As mentioned earlier, this major sporting event coincides with a strong third quarter for the hospitality sector.
Small towns see hotels sell out:
While one can see big cities witnessing very significant increases in hotel prices, in smaller cities like Dharamshala, hotel rooms are completely sold out. All rooms are reserved for players, support staff, cricket board officials or the media, with the exception of spectators.
Matchday occupancy rates are already high at hotels in major cities, causing rates to rise sharply and rates are likely to increase mostly as matchdays approach.
Teams and venues are expected to play a major role in prices:
While there is great interest in the exciting match between India and Pakistan, hotel and airfare prices are seeing significant increases, and prices for the India-Afghanistan match have not changed much.
Longest peak season:
In cities like Kolkata and Ahmedabad, the Durga Puja or Navratri festival falls in October, and hotel occupancy rates and prices generally rise during the 10-day festival, as the festival attracts tourists from other parts of India and abroad.
With both Kolkata and Ahmedabad hosting big World Cup matches, airfare and hotel prices are reaching their peak, indicating a long run during this festival season.
According to details, peak occupancy days for airlines are during festival seasons when prices rise sharply, while for hotels the second half of December are peak occupancy days and higher rates. However, with the World Cup merging with festivals, the hospitality industry is expected to benefit from the same. Although hotels in malls tend to see lower occupancy rates during festival days, this year’s World Cup matches are driving up occupancy and prices even during the holidays, Jefferies said.
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Updated: Sep 27, 2023, 03:29 PM IST
