Stranded flyers face sky-high hotel rates near IGI airport amid IndiGo disruptions

IndiGo crisis

The ongoing disruption in IndiGo’s operations has triggered an unexpected ripple effect beyond airport terminals — hotel tariffs around Delhi’s Indira Gandhi International (IGI) Airport have soared significantly, leaving stranded passengers grappling with soaring accommodation costs.

Aerocity, the upscale hospitality hub near IGI Airport, witnessed room rates surge from an average of Rs 5,000–Rs 10,000 per night to as high as Rs 45,000 in some properties on December 6.

Hotels like Pride Plaza and Holiday Inn nearly significantly increased tariffs, while even mid-range options in Mahipalpur area hiked prices sharply. Industry insiders attribute this spike to a sudden surge in demand as thousands of passengers scrambled for last-minute stays following mass flight cancellations.

On December 6, room tariff at a five star hotel like JW Marriot in Aerocity was Rs 42,480 including taxes for a night while Pullman was trading at Rs 21,842 including taxes per night. Similarly, Novotel was priced at Rs 17,594 per night on December 6 while Roseate House and IBIS hotels were trading at Rs 15,771 per night and Rs 9,600 per night respectively.

Similarly, rooms in Radisson Blu Plaza hotel in Mahipalpur area near IGI Airport were prised at Rs 19,710 per night and above.

The crisis stemmed from IndiGo cancelling over 750 flights on Friday, including 235 departures from Delhi alone, after operational miscalculations during the rollout of new Flight Duty Time Limitations (FDTL) norms. The airline admitted to underestimating crew requirements, while winter weather and congested airspace compounded delays.

Passengers’ ordeal

Ashwani Kumar, an officer in merchant navy, had flown from Lisbon to New Delhi and had to go to board an IndiGo flight to Patna from Delhi, which was cancelled with no clarity on the next one.

He had to book a hotel in Aerocity at double the normal prices due to high demand. “I had to shell out Rs 25,000 for a night at a hotel in Aerocity on December 5 because of high demand triggered on account of Indigo chaos. Other hotels in the vicinity were either more expensive or not available. This is extremely unfair, as the common traveller has to endure the most in such scenarios,” Kumar told Moneycontrol.

For many travelers, the ordeal has been financially and physically draining.

Deepa Mehta, a doctor stranded en route to Jammu, said, “I had to book a hotel at an exorbitant rate just to attend my conference online. This trip has cost me a lot financially and physically.”

“Our 8 PM flight took off at 6 AM after 10 hours of waiting. Kids were crying, old people were exhausted, and there were no updates,” another passenger wrote on social media.

Some passengers reported moving to distant hotels or relying on friends and relatives to avoid paying inflated rates. Others opted to stay overnight at the airport, citing unaffordable prices and lack of availability.

“I was shocked when I saw the hotel prices. Rooms that were Rs 10,000 yesterday are now Rs 20,000 or more. I can’t afford this, so I slept on a bench at the airport,” said Vimal Shukla, a businessman from Indore.

According to industry observers, apart from IndiGo’s meltdown, Delhi’s hotel inventory was already under pressure due to a number of events in last few days, which included high-profile weddings, and even the arrival of Russian President Vladimir Putin.

“This limited supply collided with sudden demand from stranded flyers, pushing tariffs significantly high,” an executive at a five-star hotel in Aerocity area told Moneycontrol, requesting anonymity.

Hotel operators argued that dynamic pricing algorithms automatically adjusted rates as occupancy surged.