There's a huge difference in pricing and availability between what Indians call "the metros" (Delhi, Mumbai, Kolkata, Chennai and, as far as hotel occupancy goes, Bangalore and Hyderabad) and other, smaller cities, even those that are popular with tourists. For example, I had no problems at all finding award rooms at the Sheraton Mughal in Agra or the Trident Hiltons in Jaipur and Udaipur earlier this year, and paid rooms at all three start from under US$100.