Foreign airlines are feeling the heat of the Indian hospitality business boom, reports The Economic Times . Five-star hotel room rates for airline crew have risen by 60-80% in the last one year, with most hotels insisting on annual contracts, a departure from the established practice of a three-to-five-year relationship. On an average, each international flight creates a demand for 10-12 rooms for the crew. This translates into a demand for more than 8,000 rooms per week in Delhi and Mumbai alone.

But hotels, taking advantage of the supply crunch, are no longer prepared to wook airline crews with whopping discounts (60% of rack rates, in some cases) like they were prepared to do when they were reeling under the impact of the India-Pakistan nuclear scare, 9/11 and the Iraq War.

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