As Indian tourism bounces back, an intriguing trend is emerging: international travelers are showing a clear Indian hotel brands preference in 2024. According to Booking.com’s report, “How India Travels 2024 – The Inbound Edit”, foreign visitors are increasingly opting for local hospitality options rather than global chains, with a noticeable interest in mid-market accommodations and heritage properties.
Why International Travelers Are Fueling Indian Hotel Brands Preference in 2024
In 2024, international visitors are favoring Indian hotel brands for a variety of reasons, from a desire for immersive cultural experiences to better value in mid-range accommodations. Here’s a closer look at the findings:
- Preference for Indian Brands:
- A significant 54% of international travelers expressed a strong preference for Indian hotel brands over global chains. This trend reflects a growing affinity for locally inspired services, cultural authenticity, and personalized experiences.
- The Appeal of Heritage Properties:
- More than 50% of respondents indicated a preference for staying in heritage properties. These unique accommodations allow visitors to connect with India’s rich history, offering an experience that international hotel chains often can’t match.
- Mid-Market Accommodation Growth:
- Mid-market hotels, particularly those priced between USD 101 and USD 250, have gained popularity. With 39% of travelers choosing this category, there has been a 36% year-on-year growth in bookings for mid-market hotels, compared to just a 17% increase for luxury hotels.
- Vacation Rentals on the Rise:
- Although only 30% of travelers preferred vacation rentals or private villas, the sector saw a massive 300% year-on-year spike. This trend highlights a growing interest in private, secluded stays among inbound travelers.
The Rising Demand for Mid-Market Hotels in India
The mid-market segment of India’s hospitality industry has become a sweet spot for international travelers. Many foreign visitors seek value-driven experiences, and mid-market hotels provide just that. These properties balance quality with affordability and are increasingly popular among tourists who want to explore India without overspending on luxury accommodations.
- With a 36% increase in mid-market bookings, this sector is becoming the go-to option for travelers in 2024. The trend signifies a shift from traditional luxury hotel stays to more localized, mid-tier accommodations that still offer comfort but at a lower price point.
The Importance of Indian Heritage Hotels in 2024
India’s rich cultural heritage continues to be a major attraction for tourists, especially as travelers in 2024 show a preference for heritage hotels. These properties, often restored palaces or havelis, provide an immersive experience for visitors eager to dive into India’s historical and architectural wonders.
For instance, Rajasthan’s palatial hotels, which reflect centuries-old craftsmanship, have seen a surge in demand. This growing inclination toward heritage stays offers a unique advantage to Indian hotel brands, helping them stand out against international chains that may lack the same historical depth.
International Travelers’ Indian Hotel brands Preference in 2024: A Growing Opportunity for Hotel Investors
For hotel investors and industry professionals, the preference for Indian hotel brands in 2024 signals a significant opportunity. As foreign travelers increasingly choose local accommodations over international brands, there is a clear demand for authentic and culturally rich hospitality experiences.
Local Hotel brands stand to gain immensely from this trend as they can easily get a pie of the large international market without spending too much on expensive furniture and fixtures, but just trying to give something authentically local in their offerings. This will also improve their Gross Operating Profits (GOPs) and Annual Return on Investment (ROIs).
The growth of mid-market hotels and the rising interest in heritage properties show that travelers are seeking more than just luxury—they’re looking for value, character, and a connection to India’s culture. Investors should consider expanding into or investing in mid-market properties, boutique hotels, and heritage accommodations that cater to this demand.
Survey Insights and Market Recovery
Alongside Booking.com’s report, a consumer survey conducted across 19 international markets has revealed more key insights. As Santosh Kumar, country head for India and Indonesia at Booking.com, points out, India has been one of the fastest-recovering tourism markets since the COVID-19 restrictions were lifted.
Future Expectations: While inbound arrival numbers are still below pre-pandemic levels, projections indicate that India will surpass 2019 figures by the end of 2025. Moreover, new source markets such as Australia, Italy, and the Netherlands have emerged as important players in India’s tourism industry, complementing traditional markets like the US and UK.
Conclusion: Indian Hotel Brands Are Winning in 2024
As the report demonstrates, Indian hotel brands in 2024 are becoming the top choice for international visitors, thanks to their ability to offer authentic, immersive experiences in both mid-market and heritage properties. This shift offers promising opportunities for investors, hotel operators, and hospitality professionals to capitalize on the rising demand for localized, culturally enriched accommodations.
The trends highlighted in this report represent a critical opportunity for the existing mid-sized and upper-midscale hotels to customize and tailor their offerings to a more ethnically oriented feel and overall experience, without unnecessarily trying to project an elusive luxurious image.
By focusing on cultural authenticity, value-driven offerings, and local experiences, Indian hotel brands are well-positioned to continue dominating the preferences of inbound travelers in the years ahead.
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Credits and Sources
Original Report by Accenture and Booking.com: “How India Travels 2024 – The Inbound Edit.”
Secondary source: Neha Raj from Pune.News.