India Hotel Market to Grow with a CAGR of 9.32% through 2030F
The India Hotel Market is driven
by factors such as growing domestic and
international tourism, rising disposable incomes, increasing business travel,
and expanding infrastructure and hospitality development.
According
to TechSci Research report, “India Hotel Market – By Region, Competition, Forecast & Opportunities, 2020-2030F”, the India Hotel Market was valued at USD 15.67 Billion in 2024
and is expected to reach USD 22.41 Billion by 2030 with a CAGR of 9.32% during
the forecast period. The
India Hotel market has experienced substantial growth in recent years, owing to
the rise of domestic travel across the region. As disposable incomes increase
and the middle class expands, more Indian consumers are opting to travel within
the country, leading to a surge in demand for hotels across both popular
tourist destinations and emerging regions. This growth is further fuelled by a
shift in consumer behaviour, with travelers seeking unique, off-the-beaten-path
experiences in smaller towns and rural areas, in addition to well-known spots
like Goa, Rajasthan, and Kerala. The
convenience of domestic travel, coupled with affordable pricing options, has
made it easier for families, young professionals, and retirees to explore the
vast cultural and geographical diversity India offers. Also, government
initiatives such as the "Dekho Apna Desh" campaign have also
encouraged people to explore local destinations. As a result, hotel operators
are focusing more on regional markets, developing accommodations that cater to
the needs of domestic travelers, whether for leisure, business, or wellness
tourism. This rise in domestic tourism is expected to continue, further
strengthening the growth trajectory of the Indian hotel market.
The India Hotel market is driven due to
the increasing government initiatives to support the hotel industry across the
region. Programs like the "Incredible India" campaign have
significantly boosted tourism, attracting both domestic and international
travelers by showcasing the country's rich cultural heritage, scenic beauty,
and diverse attractions. Also, the government has introduced policies to ease
visa processes, such as the e-visa scheme, which has made it more convenient
for tourists from several countries to visit India. The government is also
investing heavily in infrastructure development, including improving
transportation networks, building new airports, and enhancing rail
connectivity, all of which make travel more accessible and convenient. Also,
initiatives like the "Dekho Apna Desh" campaign encourage domestic
tourism, prompting Indians to explore their own country, thus increasing demand
for hotel accommodations. The introduction of the "Swadesh Darshan
Scheme" and "Prasad Scheme" has further promoted tourism
development by providing financial assistance to states for developing
infrastructure in key tourist spots. Also, the Goods and Services Tax (GST)
reduction on hotel services has provided relief to hotel operators, encouraging
investment in the sector. These initiatives, combined with favorable policies
and infrastructure improvements, are expected to continue fostering the growth
of the hotel industry in India.
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" India Hotel Market”
The India Hotel
Market is segmented into ownership, budget, services offered, target audience,
booking mode and region.
Based
on booking mode, online is the fastest-growing segment in the India Hotel market,
driven by the increasing use of
digital platforms for travel planning and reservations. The rise of online
travel agencies (OTAs) like MakeMyTrip, Booking.com, and Airbnb has made it
easier for consumers to compare prices, read reviews, and book accommodations
from the comfort of their homes. The growing preference for contactless,
convenient booking experiences has accelerated this trend, especially among
tech-savvy millennials and Gen Z travelers. Also, the increasing penetration of
smartphones and improved internet connectivity in both urban and rural areas
have made online platforms more accessible to a wider audience. Hotels are
responding by enhancing their online presence, offering exclusive deals, and
providing seamless digital booking experiences through mobile apps and
websites. This shift towards online bookings is expected to continue as more
travelers opt for the convenience, transparency, and ease of making
reservations via digital platforms, making it a key driver of the Indian hotel
market’s growth.
Based on region, South region of India is the fastest
growing in the Hotel market, driven by a rise in both domestic and
international tourism. States like Tamil Nadu, Kerala, Karnataka, and Andhra
Pradesh are seeing a significant influx of tourists due to their rich cultural
heritage, beautiful landscapes, and growing business opportunities. Popular
destinations like Kochi, Bangalore, Chennai, and Hyderabad are attracting
travelers for leisure, wellness, and business purposes, further boosting hotel
demand. Also, the region's growing infrastructure, including better
connectivity through airports, highways, and railways, is making travel more
accessible. The South’s appeal as a hub for business tourism, along with its
vibrant culture and increasing number of luxury and boutique hotels,
contributes to its rapid growth in the hospitality sector. This trend is
expected to continue as both leisure and business tourism flourish in the
region.
Major companies
operating in India Hotel Market are:
- The
Indian Hotels Company Limited
- ITC Hotels Limited
- EIH Limited
- The Bharat Hotel
- Lemon Tree Hotels Limited
- The Leela Palaces, Hotels and Resorts
- Marriott International, Inc
- Hilton Worldwide Holdings Inc.
- Radisson Hotel Group
- Accor SA
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“The India Hotel Market is driven by the
rising disposable incomes and improved infrastructure across the region. As
India’s middle class expands, more consumers can afford both domestic and
international travel, increasing demand for hotels across various segments,
from budget to luxury. The growing disposable income has made travel a regular
activity, further accelerating the need for diverse accommodation options.
Simultaneously, significant investments in infrastructure are enhancing
connectivity across the country. Upgraded airports, expanded highways, and
improved railway networks are making it easier for travelers to reach both
popular and emerging tourist destinations. These infrastructural improvements
not only make travel more accessible but also stimulate the development of new
hotels in previously underserved regions. As the economy continues to grow, the
combined effect of rising incomes and better infrastructure is expected to keep
driving demand in the Indian hotel market.” said Mr. Karan
Chechi, Research Director of TechSci Research, a research-based management
consulting firm.
“India Hotel Market By
Ownership (Independent, Chained), By Budget (Economy, Premium), By Services
Offered (Accommodation, Dining, Meeting & Event Spaces, Others), By Target
Audience (Business Travellers, Leisure Travellers, Couples, Families), By
Booking Mode (Online, Offline), By Region, Competition, Forecast &
Opportunities, 2020-2030F”, has evaluated the future growth potential of India Hotel
Market and provides statistics & information on market size, structure and
future market growth. The report intends to provide cutting-edge market
intelligence and help decision makers take sound investment decisions. Besides,
the report also identifies and analyzes the emerging trends along with
essential drivers, challenges, and opportunities in the India Hotel Market.
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