As the national capital of Delhi witnesses skyrocketing five-star hotel prices due to the rising travel demand into the city for the upcoming India AI Impact Summit 2026, travelers are demanding that the central government mandate a price ceiling on hotel room rates, according to a LocalCircles survey released on 10 February 2026.
The LocalCircles survey received responses from more than 34,000 people located across 307 districts of India. The report also mentioned that 67% of the respondents were men, while 33% of the survey respondents were women.
The survey, which was collected through the company’s platform, received responses from 47% people belonging to Tier 1 cities, 30% from Tier 2 cities, and 23% were from Tier 3, Tier 4, and other rural districts.
Why are Delhi hotel prices skyrocketing?
India is hosting the India AI Impact Summit 2026 at Bharat Mandapam, New Delhi, from 16 February 2026 to 20 February 2026, an event which is set to be attended by thousands of delegates from all around the world.
Delhi hotel prices are skyrocketing due to the high travel demand into the city as the hotels in the national capital deal with the higher-than-usual occupancy rates over the rising footfall.
According to a recent PTI report, the summit is expected to record strong footfall from the global community as people from over 100 countries are set to attend the event, which already has more than 35,000 registrations.
Govt price caps on room rate in focus?
LocalCircles survey showed that when people were asked about how should India regulate hotel prices, 74% of the respondents to the survey said that they are looking forward to a government body which can be appointed to resolve ‘complaints related to profiteering by hotels.’
However, in the same survey, 26% of the total 11,324 respondents said that they feel that the government or any regulator should not be appointed to regulate hotel room prices.
22% of the same respondent pool said that the government should consider establishing a “ceiling structure” and have the competition watchdog (Competition Commission of India – CCI) look into complaints from the people who were facing issues due to the alleged pricing of the hotel rooms in India.
“To sum up, 74% of consumers surveyed indicated that they are in favor of a government body being appointed to resolve complaints related to profiteering by hotels,” according to the survey report.
LocalCircles’ report also highlighted that 57% of its 11,628 respondents to the query said that they have faced at least one or more instances where a hotel had charged them an “exorbitant price” for the room.
“The data shows that 7% of respondents had paid steep rates 75-100% of the times they had booked; 19% paid more than normal rates 50-75% of the times; 12% had such an experience 25-50% of the times they booked hotel accommodation and 19% had such an experience less than 25% of the times,” according to the report.
