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Vijayawada hotels struggle with low occupancy during festive season

Despite a surge in visitors during Dasara and other major festivals, Vijayawada's hotel industry is grappling with unexpectedly low occupancy rates. Industry insiders attribute the weakness to day visitors departing the city in the evening rather than staying overnight.

LSN India · 14 October 2026

Vijayawada hotels struggle with low occupancy during festive season

Vijayawada's hospitality sector is facing an unexpected challenge as the city experiences a disconnect between visitor footfall and hotel bookings during the festive season. While Dasara celebrations and other major events have drawn large crowds to the Andhra Pradesh city, the anticipated boost in overnight stays has failed to materialize.

Hotel operators report that the majority of devotees and tourists visiting during the festival period return to their hometowns by evening, limiting the potential for room occupancy. This trend has left many properties with significant unutilized capacity despite the heightened activity across the city's religious and cultural venues.

The pattern suggests that improved transportation connectivity and changing visitor behavior have altered traditional tourism dynamics in Vijayawada. Rather than requiring overnight accommodation, many pilgrims and festival attendees are now making day trips, relying on improved road networks to commute from surrounding areas.

Hoteliers have expressed concern over the mismatch between seasonal expectations and actual business performance. The modest occupancy levels during what is traditionally considered peak season have raised questions about the sustainability of current hotel capacity and pricing strategies in the city.