New Year 2026: Hotel Room Rates Rise Up to 20% as Luxury Experiences Drive Demand
New Year celebrations are getting bigger, bolder—and significantly more expensive. Hotels across India are rolling out curated experiences ranging from morning yoga and DIY cocktail bars to recovery brunches and immersive wellness sessions to attract guests for New Year’s Eve 2026. The demand surge, however, is pushing room tariffs up by 10–20% compared with last year, according to industry executives.
Hotel Tariffs Climb as Demand Stays Strong
Hotel operators say year-end pricing reflects strong leisure and urban demand across the country. At Leela Palaces, Hotels and Resorts, festive getaway packages are up by around 20%, driven by high bookings in heritage destinations such as Udaipur and Jaipur, as well as metro markets like New Delhi and Gurugram.
Madhav Sehgal, senior vice-president and head of sales and operations at Leela, said demand is being fuelled by a mix of domestic travellers, international visitors and premium festive events.
The luxury chain is hosting Picante-themed New Year celebrations, complemented by activities like baking workshops and guided yoga sessions.
Luxury and Heritage Destinations Lead the Surge
Other hotel groups are reporting similar trends. Radisson Hotel Group expects rate growth of 15–18% at destinations such as Jawai, Kumbhalgarh and Jodhpur, according to Nikhil Sharma, managing director and COO (South Asia).
“In the South, our resort in Mamallapuram is seeing nearly a 20% increase in New Year tariffs,” Sharma said, indicating strong resort-led demand.
Industry Ends 2025 on a High Note
Industry-wide indicators remain firm. Average daily room rates (ADR) in December are up 10–12% year-on-year, said KB Kachru, president of the Hotel Association of India.
“Despite some regional softness mid-year, the industry has shown remarkable resilience and is ending 2025 on a strong note,” he said.
Online Bookings and Spend Per Guest Jump
Travel booking platforms are also recording a sharp spike. Cleartrip reported a 2.5x increase in hotel bookings for the year-end season compared with last year.
“Average spends per traveller are rising, not just due to pricing, but because guests are opting for longer stays and more immersive experiences,” a Cleartrip spokesperson said.
Hotels Compete With Curated Festive Experiences
To stand out in a crowded festive calendar, hotels are investing in differentiated offerings. Novotel Hyderabad Convention Centre has introduced a ‘recovery brunch’, alongside extended happy hours from noon to 8 pm.
“Given the year-end travel mood, we wanted to elevate the guest experience by offering longer, more relaxed hours,” a hotel spokesperson said.
In Chennai, ITC Grand Chola is offering a New Year buffet inspired by global night markets, along with a 13-course Avartana dining experience, which reimagines South Indian cuisine.
While some ITC properties have kept rates similar to last year, new experiential curations have been introduced at competitive pricing, an ITC spokesperson said.
Wellness and DIY Concepts Gain Popularity
At Ronil Goa – JdV by Hyatt, guests can expect do-it-yourself bars and spirit-forward beverage concepts, said general manager Pratiti Rajpal.
Meanwhile, Six Senses Bhutan is offering Indian travellers a mindful New Year package featuring TsaTsa making, butter lamp prayers, aqua meditation and cocktail masterclasses, even as most domestic properties push tariffs higher.
Mid-Scale Hotels Also See Festive Upside
Mid-scale and leisure-focused hotels are benefiting from the holiday rush as well. Sarovar Hotels has increased New Year rates by around 10%, with destinations like Jim Corbett, Puducherry, Agra and Jaipur witnessing strong demand, according to CEO Jatin Khanna.
Leisure Hotels Group has raised tariffs by 10–12%, citing sustained interest in resort-style stays.
City Hotels Cite Upgrades for Premium Pricing
City hotels say higher tariffs are being supported by recent investments. Anmol Ahluwalia, area director of operations and general manager at Taj Mahal, New Delhi, said festive pricing reflects significant upgrades, including renovated rooms, advanced air purification systems and curated gourmet experiences.
Conclusion
As travel demand rebounds strongly, New Year 2026 is shaping up to be one of the most expensive festive seasons for hotel stays in recent years. With guests increasingly seeking experiences rather than just accommodation, hotels are leveraging curated celebrations to justify premium pricing.
Final Thoughts from TheTrendingPeople
New Year travel is no longer just about a room—it’s about the experience. As hotels double down on wellness, dining and immersive celebrations, rising tariffs reflect a shift in how travellers value year-end getaways.