India AI Summit: Experts raise competition concerns over spike in Delhi hotel prices

Dynamic pricing across various industries has been under scrutiny of CCI for the past few years.

• Delhi hotels raise rates for AI Summit, causing antitrust concerns
• CCI may intervene if hotels colluded on pricing, not for demand hikes
• Dynamic pricing faces scrutiny after similar Indigo airline probe

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The dramatic spike in Delhi's luxury hotel rates during the India AI Impact Summit 2026 has triggered antitrust concerns among market observers, with some drawing parallels with the previous IndiGo pricing controversy.

Since last week, Delhi’s elite hotels have been charging anywhere between Rs 40,000 to Rs 10 lakh on account of demand from the delegates attending the AI summit.

Earlier this month, the Competition Commission of India (CCI) launched an investigation into a similar matter in the IndiGo airlines case for charging steep premium on flight tickets when massive disruption led to cancellation of thousands of flights.

To be sure, there is no restriction on hotels raising prices due to higher demand and CCI has no jurisdiction over pricing of hotel rooms. However, CCI can initiate action if these hotels have co-ordinated on pricing or have acted in concert, say competition experts.

Red flags 

“The stark price surges witnessed during the India AI Impact Summit 2026, where luxury suites are hitting Rs 30 lakh and above, underscore a growing tension between dynamic market pricing and exploitative conduct. While surge pricing is a standard commercial tool, the CCI’s ongoing probe into IndiGo serves as a critical precedent that the regulator is increasingly willing to scrutinise whether dominant players are manufacturing scarcity to force exorbitant prices,” said Ankita Singh, Founder Sarvaank Associates.

“Most crucially, such arbitrary profiteering risks triggering a regulatory backswing that politically forces the state back into an operational role to protect the public interest.”

Dynamic pricing across various industries has been under CCI scrutiny for the past few years. Apart from the IndiGo saga, CCI has also probed cab aggregators and online travel agencies for exaggerated dynamic pricing.

“Under the Competition Act, 2002, price increases are not unlawful per se and competition law does not regulate high prices, it regulates anti-competitive conduct. However, where pricing behaviour results in supra-competitive outcomes due to coordinated practices, exchange of commercially sensitive information, algorithmic alignment, or abuse of dominance, it may attract scrutiny under Sections 3 and 4 of the Act,” said Ketan Mukhija, partner and co-head PE & VC, Kochhar &Co.

“The CCI’s ongoing examination of peak-period airline pricing, including allegations of capacity manipulation and exploitative fare increases, reflects the regulator’s focus on whether artificial scarcity or coordinated conduct is distorting market outcomes. In the context of sharp price escalations around high-demand events such as the AI Summit, the key legal question would be whether such increases are purely demand-driven or whether they stem from collusion, algorithmic price alignment, or dominance-based exploitation,” Mukhija added.

IndiGo replay?

On February 4, CCI issued a prima facie order initiating a probe into IndiGo’s alleged abuse of market domination. Between December 2 to December 15, IndiGo faced a massive operation crisis that led to cancellation of over 4,500 flights. This was due to IndiGo not being able to align its pilot roaster with new Flight Duty Time Limitation (FDTL) rules mandated by the DGCA.

During the period, the flight charges surged to tens of thousands of rupees despite DGCA’s instructions against surge pricing. On February 18, CCI took cognizance of the case and initiated a preliminary inquiry into the alleged price manipulation.

Some experts, however, say charging high prices in such a period (AI Summit), so long as each hotel is acting independently, is not unlawful under competition law.

"Competition concerns arise when market players restrict competition through means other than competition on the merits – for example, by entering into agreements to fix prices, allocate customers or territories, or by collectively restricting room availability to artificially push prices up," said Akshayy S Nanda, Partner at Saraf and Partners.