Bangalore Hotels Third Costliest In The World
Date: Tuesday , May 02, 2006
The global hotel industry is enjoying a growth phase and showing signs of strong performance recovery - according to a new survey by U.K.’s leading corporate travel management company, BTI U.K. Bangalore figures as the third costliest according to the survey.
The survey revealed exceptional hotel room rate increases in Moscow and Bangalore (29 percent and 42 percent respectively), reflective of Russia and India’s increasing business development prospects and growing importance to business travelers. In the first six months of 2005, Moscow replaced Milan as the city with the highest average room rate (ARR). Rome is now positioned as the second most expensive city worldwide for business travelers.
The appearance of Moscow, Rome and Bangalore, along with new-entrant Athens, push Zurich, Copenhagen, Frankfurt and Amsterdam out of the Top 10 most expensive list. Bangalore’s number three position is reflective of its overall economic growth with BTI U.K. noting particular activity in the banking, finance and IT sectors. BTI U.K.’s survey is based on a combination of industry figures, actual room nights booked and rates paid by its clients during January - June (inclusive) 2005.
At an average $288 per room, Bangalore continues to remain the most expensive city for hotel rooms among the main business and leisure destinations in India. The first three days of the week are where the ARR’s are the highest. In October 2005 the ARR in the garden city was up 32 percent year-on-year. While 90 percent of the hotel clientele in the city comprises foreign businesspeople it appears that it is the technology sector, which is fuelling the demand.
In New Delhi, the ARR in October 2005 was $180, an increase of 39 percent year-on-year. Industry watchers believe that tourist inflows into India will grow at a CAGR of 10 percent between now and 2010.