The eagerly anticipated ICC ODI World Cup 2023 is set to kick off in India on October 5 and run until November 19, aligning with the festive period of Durga Puja. However, the excitement surrounding the tournament has also led to a substantial increase in hotel and airline fares.
According to a report by the American multinational investment bank and financial services firm, Jefferies, hotel prices have surged on average by 150% for selected hotels, while airline fares have seen an 80% increase. These price spikes are particularly pronounced on days when India is scheduled to play, as reported by RedboxGlobal India on September 27.
Jefferies noted that the World Cup coincides with the traditionally robust third quarter (3Q) for the hospitality industry, presenting an opportunity for both hotels and airlines, including companies like Indian Hotels Company Limited (IHCL) and IndiGo.
ICC ODI World Cup 2023 Schedule:
The tournament spans 46 days and features 48 matches across ten different cities in India, with ten participating countries. Matches will be held in Ahmedabad, Bengaluru, Chennai, Delhi, Dharamsala, Kolkata, Lucknow, Mumbai, Pune, and Hyderabad. The nail-biting action is scheduled to take place from October 5 to November 19, with each of the host cities hosting multiple matches.
Hotel and Flight Fare Surge:
Jefferies’ analysis reveals that hotel and flight rates in host cities for matches involving India have risen by an average of 150% for select hotels and 80% for certain flights compared to the week preceding match days. Some rates have surged by as much as 13 times for hotels and 5 times for flights. However, fare increases for non-India match days are comparatively lower.
Smaller cities like Dharamshala have reported complete sell-outs of hotel rooms, primarily due to bookings from players, support staff, cricket board officials, media, and spectators.
In larger cities, high hotel occupancies on match days have contributed to steep rate hikes, with further increases expected closer to the match dates.
Playing Teams and Venues Impacting Fares:
The India vs. Pakistan match has generated immense interest, resulting in significant spikes in both hotel rates and airfares. In contrast, rates for the India vs. Afghanistan match have remained relatively stable.
Extended Peak Season:
Cities like Kolkata and Ahmedabad, which host World Cup matches, coincide with the Durga Puja and Navratri festivals in October. These festivals traditionally attract tourists from across India and abroad, leading to higher hotel occupancies and rates. This convergence has extended the peak season for both airlines and hotels, indicating a prolonged period of high demand and rates.
The ICC ODI World Cup 2023 has created a unique scenario where sports excitement intersects with festive celebrations, benefitting the hospitality industry by fueling occupancy and rates even during festive days, according to Jefferies.
