India's hotel industry may see fewer entrants as project costs surge and visitors prune travel plans, though room rates stick to higher levels, officials said. India's inflation jumped to 11.42 percent in mid-June after the government raised petrol and diesel prices by about 10 percent earlier this month. "It is ahead of last year but slightly below expectations so it is soft I'd say, but it's a soft period as well," Raymond Bickson, managing director of top hotel operator Indian Hotels Co. Ltd (IHTL.BO: Quote, Profile, Research), referring to visitors in the first quarter.