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Mumbai, the financial capital of the country, is known for being a city that demands high cost lifestyle and according to the latest report by Hotels.com, one night's stay in the city of dreams stands costliest in the country.
After a national average hike of seven per cent in hotel charges last year, Mumbai witnessed a five per cent jump and one has to shell out Rs 8,088 compared to Rs 7,736 dring 2011.
Intrestingly, Udaipur, known for attracting chunk of foreign travellers, stands at the second place(Rs 7,683), leaving behind New Delhi , despite a fall of three per cent in hotel charges.
Sudhir Sinha, COO at Best Western, said the rise in hotel charges in Mumbai could have been higher but due to economic slowdown and many projects failing to take off resulted into a five per cent rise.
Rate of multiple downgrades by rating agencies last year had dented India's image in the financial world and people were apprehensive about venturing into the country.
The report indicated that the fall in the value of the rupee in 2012 helped increase domestic tourism numbers as holidaymakers preferred to stay at home rather than visit more expensive destinations abroad.
In addition, the extension of the visa-on-arrival policy had a positive impact and there was an influx of foreign visitors, with the majority coming from the US and the UK. As a result, occupancy rates rose.
Owing to stability in demand, coupled with higher domestic tourism, India saw an average rise of seven per cent for a night's stay at hotels last year, according to a recent report. The national average for one night's hotel stay was Rs 6,141 in 2012.
