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Bangalore hotels world's third most costly
Indo-Asian News Service

London, Oct 15 (IANS) A business visit to Bangalore now costs more than a visit to London, Paris or New York, according to a new study on business travel.

The study says that hotels in Bangalore were the third most costly, with an average room rate of 147.83 pounds per night, which is 42 percent higher than the previous year.

Hotels in Moscow were said to be the most expensive in the world, with an average room rate of 165.21 pounds, 29 percent up than the previous year. 

The study, undertaken by Business Travel International (BTI), a travel management company, between January and June this year, was based on industry figures and rooms booked by clients. 

Margaret Bowler, the general manager of hotel relations at BTI UK, said there had been a proliferation of five-star properties in Moscow while many businesses had moved into Bangalore.

"Going to Moscow is not like hopping over to Amsterdam, because the city is still perceived as quite dangerous. Most people, particularly those on business, want the security of a five-star hotel and are prepared to pay for it," she said.

"Bangalore has become the home for call centres, so lots of companies have moved in to set up operations," Bowler told The Telegraph. "Hotels have been able to put up their prices on the back of the increase in demand."

The paper reported Saturday that the BTI found that Rome was the second-most expensive city. Average room prices rose 13 percent to £157.65, partly because of the increase in demand for hotel rooms following the death of the Pope.

"These days, hotels operate a much more flexible pricing system and are able to push up prices during busy periods," said Bowler.

Room rates in Paris (fourth place) and London (seventh) were both up six percent, to £146.10 and £136.66 respectively, while prices in New York City (fifth) rose seven percent to £145.83. 

Tokyo, a notoriously expensive city, did not even figure in the top 10 most expensive places to stay.

The paper quoted Jennifer Viloria, research manager at PKF, a hotel consultancy, as saying that she was not surprised by the findings. 

"Most hotels in Moscow are developed by local property companies and increasingly they want to hoist five-star flags on their properties," she said. 

"In Rome, there is actually quite a small supply of hotel rooms and a lot of refurbishment is taking place. Demand is high and so are prices."