Nearly 50% hotels in Pune opt out of hosting NYE parties

Pune: Nearly 45–50% of hotels in the city have opted out of hosting New Year's Eve parties this year, with hoteliers citing high costs involved in organising such events, expensive music copyright licences and a noticeable dip in demand as many residents are travelling out of town. Instead of ticketed countdown parties, many properties are now restricting themselves to regular dinner reservations, highlighting a shift in consumer preference towards quieter, family-oriented celebrations.
Amit Kumar Sharma, past-president of the Poona Hoteliers Association, said the rising cost of compliance has made large NYE celebrations financially challenging for many hotels in Pune. "In recent years, the overall cost of organising these events has gone up significantly, especially due to production-related expenses and copyright compliances. Hotels are required to obtain multiple copyright licences, with rates varying for indoor and outdoor events. When combined, these alone can translate into a substantial financial outlay," Sharma said. He added, "This year, quite a few hotels have consciously decided not to celebrate New Year in a big way. In several cases, total compliance and licensing costs are not proportionate to revenue that can realistically be generated from a single night. While licensing costs are a key consideration, changing consumer preferences, such as people travelling out of Pune or opting for smaller, private gatherings, have also played a role." According to him, "Hotels respect festive sentiments associated with New Year and remain committed to adhering to regulations, but the current cost structure makes large-format celebrations difficult to sustain on a commercially viable basis." Several hotel managers echoed that there's a trend of people travelling out of Pune and a shift away from large-ticket parties. Santanu Sarkar, general manager of Crowne Plaza Pune City Centre, said the property would not host any special event this year. "We are hosting no ticketed event. We will have normal restaurant bookings, where people come with their families for dinner. A big event does not make sense when the costs are so high," Sarkar said, adding that the broader industry is witnessing similar patterns. Pradeep Shetty, spokesperson of the Hotel and Restaurant Association of Western India (HRAWI), said, "In all places and particularly smaller cities, the number of events has reduced drastically due to music copyright licensing issues. Multiple agencies now demand fees for events and the number of such private agencies has increased, with very little regulatory control. This trend has persisted for the last few years, forcing many hotels to opt out of NYE events. A similar situation was seen during Christmas as well, with nearly 90% of hotels, including five-star properties, not hosting any special celebrations." With no additional regulatory curbs in place, industry bodies said the decision to scale back New Year events was largely driven by commercial considerations. Ajinkya Udane, Pune chapter head, National Restaurant Association of India (NRAI), said, "There are no additional restrictions for NYE celebrations this year, and restaurants are allowed to operate as per existing norms, including extended timings up to 5am. However, establishments are expected to function responsibly and strictly adhere to all safety and operational guidelines laid down by the authorities." The slowdown is also visible in standalone nightlife venues. The owner of a restobar in Koregaon Park said advance ticket sales for NYE were significantly lower than last year. "By this time last year, we sold around 25% of our total tickets. This year, we have managed to sell only about 18% so far," the owner said.

Get an chance to win ₹5000 Amazon Voucher by taking part in India's Biggest Habit Index! Take the survey here