As the Hoteliers are expecting a surge in demand as the Common Wealth Games are nearing in, many major players are planning to increase room tariffs by 10-15 % from September as they expect occupancies to improve with the onset of the key winter season.

While the comes with a hope that it will help them recover from the slowdown that hit Indian hotels two years ago, it may be noted here that Indian hotels traditionally increase rates before the crucial winter season every year.

However, coupled with the terrorist attacks and economic slowdown, the Indian Hotel industry has seen its prices coming down by 25-30% over the past two years.

Dipak Haksar, chief operating officer of hotels division, ITC said that the occupancy level is gaining momentum and the industry is expecting an upward correction in the prices. Echoing similar views, Taj Group of Hotels' senior vice president Ajoy Misra said that it expects the occupancy level to be close to 70%.

It may be noted here that the hospitality firms is despite the concerns on economic growth in key source markets for international tourists such as the US and Europe.