ICC World Cup May Trigger Hotel, Flight Fares Up By 150%, 80%: Jefferies

ICC Cricket World Cup 2023 can push fares for selective hotels and flights up by an average of 150% and 80%, respectively, according to a report by Jefferies. The report said, "The World Cup event is coinciding with the seasonally strong 3Q for the hospitality industry. We checked hotel/flight rates across the venues for matches featuring India and find average rates for the match days up by 150%/80% for select hotels/flights compared to the week prior to match day with some rates up to the extent of 13x/5x. For non-India match days, fares escalation is lower vs normal days."

ICC Cricket World Cup 2023 will be held between October 5 and November 19. The event is returning to India after 12 long years. Ten countries will participate in the 46-day international tournament and five matches each will be held in Indian cities including Ahmedabad, Bengaluru, Chennai, Delhi, Dharamsala, Kolkata, Lucknow, Mumbai, and Pune, while Hyderabad will host three matches.

The demand is not only seen in the major cities but it has also spread out to smaller cities also.

The analysts said, "While major cities are seeing very significant increases in hotel rates, our interactions at Hotels in small cities like Dharamsala suggest that rooms are completely sold out for multiple days."

They added, "The rooms are booked for players, support staff, cricket board officials, media etc. apart from booking from spectators. Our checks with reservation desks of many hotels in bigger cities also indicate that occupancies for match days are already running high which has resulted in rates rising sharply and rates are likely to mostly increase further closer to match dates."

"The peak occupancy days for airlines are during festival seasons when rates go up sharply whereas for hotels the 2nd half of Dec are days of peak occupancy/higher rates. With the World Cup matches coinciding with the festive period, the hospitality industry is slated to benefit from the same. Hotels in business centers tend to see lower occupancies during festival days, but World Cup matches this year are fueling occupancy/rates even during festive days," said the report.

Hospitality industry to benefit from World Cup matches coinciding with the festive season in India:

It is mostly seen that while the peak demand for airlines happens during the festive season, hotels see their demand surge in the second half of December. However, this year the trend is defied by the World Cup matches, keeping hotel demand strong for an extended period. This unique convergence of cricket fervor and festival season is expected to benefit the hospitality industry in the country.

How much will hotel, Air fares increase during ICC Cricket World Cup 2023?

According to the report, average rates for the match days are expected to be up by 150%/80% for select hotels/flights compared to the week prior to match day with some rates up to the extent of 13x/5x.