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
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.