Small on bud­get, big on mar­ket

The face of the In­dian hos­pi­tal­ity in­dus­try is chang­ing grad­u­ally with mid-scale and bud­get ho­tels gar­ner­ing as much in­ter­est from trav­ellers as lux­ury prop­er­ties. Ex­perts say, by 2020, bud­get and al­ter­nate stays will be steal­ing the lion’s share of the h

TravTalk - India - - BULLETIN -

Mid-scale and Bud­get ho­tels will con­tinue to ac­count for >50% of branded ho­tel rooms In­dian hos­pi­tal­ity space is ex­pected to con­tinue ac­cel­er­at­ing from $7 bil­lion worth of gross book­ings in 2015 to $ 13 bil­lion in 2020, $ 10 bil­lion of which is ex­pected to be con­sti­tuted by ho­tel book­ings and the re­main­ing by book­ings for al­ter­nate stays. Al­ter­nate stays, which in­clude short-term rentals and other lodg­ings, could be­come worth $3 bil­lion by 2020, as trav­ellers, both do­mes­tic and for­eign, are be­com­ing more open to al­ter­nate stay op­tions grad­u­ally. In 2020, bud­get and lux­ury ho­tels are ex­pected to be the ar­eas of max­i­mum growth. Bud­get ho­tels, which con­sti­tute 8% of the mar­ket to­day, are ex­pected to grow at 13.5%, driven by the growth of the Aspir­ers seg­ment on the de­mand side and the con­sol­i­da­tion, stan­dard­i­s­a­tion and brand­ing of cur­rently un­branded prop­er­ties through ag­gre­ga­tor-based start-ups on the sup­ply side.

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