If you want to rent out a place in Bengaluru on New Year’s Eve, be ready to shell out more than a month’s rent for a house. Due to the increased demand, the prices of hotels and other accommodation options like villas and farmhouses have gone up by three to four times, with many properties charging up to ₹1.2 lakh (including taxes) per night.
On the outskirts of the city near Devanahalli, Mysuru Road, Hosur Road, Koramangala, and others, the prices of villas and resorts range anywhere between ₹30,000 per night to ₹85,000 per night. The same properties are available for ₹10,000 - ₹20,000 in the second week of January, according to the information on a popular property booking website.
“I am trying to book a resort for 10 people in the areas around Bengaluru and the prices are mindboggling. One of the resorts in North Bengaluru quoted the prices to be ₹55,000 before taxes. With most properties already booked, we have few options,” said Kushal Venkatesh, a resident of Uttarahalli.
Hotel bookings
Apart from such properties, the price of rooms in three-star and five-star hotels have also gone up by at least 10%. In the Central Business District, the prices of rooms in star hotels are between ₹15,000 - ₹28,000 per night.
“Bengaluru has become a highly sought-after vacation spot resulting in an increased demand coupled with the rising operational costs (influenced by the festive arrangements). This has led to a slight price increase compared to regular periods. This is a common trend across the hospitality industry during peak seasons, and it ensures the sustainability of hotel operations,” said Virender Razdan, General Manager, The Leela Bhartiya City, Bengaluru.
P.C. Rao, president, Bruhat Bengaluru Hoteliers Association (BBHA) said that between Christmas and New Year’s, around 50,000 rooms were booked in Bengaluru.
Boom season
“After COVID, the business is truly booming this time. Many tourists from North and North East India visit Bengaluru during this time. With it being the holiday season in the U.K. and U.S., tourists and NRIs from there are also coming to the city. Naturally, due to the demand surge, hotels have increased the rates by 5-10%,” Mr. Rao said.
He also added that while 70-75% of rooms have been booked at star hotels for New Year’s, the remaining would be reserved for last-minute reservations, long-time customers and walk-ins.
According to sources, the hospitality sector in Bengaluru is expecting to have a turnover of ₹500 crore - ₹600 crore during the New Year’s celebrations including accommodations, pubs and bars, restaurants and New Year’s events. The excise collection is expected to surpass last year’s ₹200 crore.
