India's Hospitality Market Size was valued at USD 25.3 Billion in 2022. The India Hospitality market industry is projected to grow from USD 26.6 Billion in 2023 to USD 39.2 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.0% during the forecast period (2024 - 2032). The substantial expansion of both domestic and international tourism in India is one of the major market drivers propelling the growth of the India hospitality market.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Over the past few years, a discernible trend has emerged among consumers in the hospitality industry, favoring experiential travel, which is driving the market growth. There is a growing trend among travelers to look for experiences that not only provide lodging but also offer an authentic and immersive encounter with the local culture, history, and traditions. Contemporary travelers, with a specific focus on millennials and Generation Z, are increasingly prioritizing genuine travel experiences. They actively pursue occasions to interact with indigenous populations, indulge in genuine gastronomy, and partake in cultural pursuits that foster an authentic sense of location. This transition is driven by an aspiration to transcend tourist pitfalls and cliched landmarks in favor of immersive experiences that provide a more profound comprehension of the location. The influence of social media platforms on the development of the experiential travel trend has been substantial. Travelers are progressively being motivated by influencer-generated content that highlights distinctive and unconventional experiences. Individuals are motivated by a desire to generate unique and unforgettable experiences that they can then share on social media platforms. This creates a need for visually appealing and Instagrammable moments.
In this digital era, the influence of technology on the hospitality industry is growing in significance. In order to optimize operational efficiency, streamline visitor experiences, and maintain a competitive edge, hotels and resorts are increasingly adopting innovative practices and utilizing technology. In an effort to personalize the visitor experience, hotels are utilizing guest data in pursuit of data analytics tool proliferation. Hotels can increase passenger loyalty and satisfaction by providing tailored recommendations, customized promotions, and personalized amenities through the analysis of guest preferences, behavior, and booking history. A revolutionizing force in the way hotels interact with their guests, data-driven personalization influences curated dining recommendations and customized welcome messages. Through the use of virtual concierge services, mobile applications, and in-room voice assistants, technology is empowering hotels to provide guests with an array of improved services and amenities. These digital tools enable guests to effortlessly request services, access information, and communicate with hotel personnel. Additional investments are being made by hotels in digital room controls, high-speed Wi-Fi, and Internet of Things (IoT) devices in order to offer guests an integrated and connected experience during their entire stay. Thus, driving the India Hospitality market revenue.
The India Hospitality market segmentation, based on the Type, includes Chain Hotels and Independent Hotels. The largest market shareholders in the Indian hospitality industry are chain hotels. These hotels are affiliated with reputable, long-standing brands and provide standardized amenities and services at numerous locations. Chain hotels are able to attract both domestic and international guests by virtue of their robust brand recognition, extensive marketing initiatives, and customer loyalty programs. Furthermore, their consistent service quality and dependability contribute to frequently higher occupancy rates. Moreover, chain hotels often accommodate business travelers and large group reservations, thereby reinforcing their market supremacy and augmenting their substantial market portion.
Figure 1: India Hospitality Market by Type, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The India Hospitality market segmentation based on segment, includes service apartments, budget and economy hotels, mid and upper-mid-scale hotels, and luxury hotels. The highest market share is occupied by the budget and economy hotel segment within the Indian hospitality industry. These hotels are designed to accommodate budget-minded guests who are looking for reasonably priced lodging that does not sacrifice necessary amenities. Focusing on providing economical and comfortable lodging options, budget and economy hotels appeal to a diverse clientele, including backpackers, budget travelers, and families on vacation. Their market dominance can be attributed to their competitive pricing, strategic locations, and frequently efficient operations. As a result, they have gained significant popularity among business and leisure travelers, spanning diverse demographics and travel preferences.
Several factors are contributing to the robust development of the hospitality industry in India, including rising disposable incomes, a burgeoning middle class, the expansion of domestic and international tourism, and government initiatives to improve tourism infrastructure. The expansion of the Indian economy has resulted in an equivalent increase in consumer expenditure towards lodging and travel, thereby stimulating demand in the hospitality industry. An aspect that is significantly propelling expansion in the Indian hospitality sector is the ascent of experiential travel. Contemporary travelers are displaying a growing inclination towards seeking out distinctive and genuine experiences while on the road, diluting conventional excursions with immersive cultural engagements, daring activities, and gastronomic expeditions. In light of travelers' changing preferences, hotels and resorts are providing curated experiences, including educational excursions, cultural immersion programs, and environmentally sustainable culinary classes. An additional noteworthy development is the expanding integration of technology within the realm of hospitality. Technology-driven advancements, such as mobile check-in, keyless entry systems, and personalized visitor experiences facilitated by data analytics, are significantly transforming the operations and guest interactions of hotels and resorts. The adoption of digital innovation not only serves to optimize operational processes but also elevates the overall experience of guests, thereby stimulating consumer loyalty and satisfaction.
Within the highly competitive Hospitality industry market, a number of significant companies hold a dominant position in various market segments. International luxury hotel chains, including Hilton Worldwide, The Ritz-Carlton, and Marriott International, vie for market share with notable Indian entities, including Taj Hotels, Oberoi Group, and ITC Hotels. These leading market players provide luxurious lodgings, exceptional facilities, and exceptional customer service in order to accommodate opulent guests in search of extraordinary experiences.
In the budget and mid-scale segments, the major players in the Indian hospitality market share fierce competition between domestic and international chains for market share. International budget hotel brands such as Ibis, Ginger Hotels, and Formula 1 by AccorHotels contend with Indian hotel chains, including OYO Rooms, Treebo Hotels, and FabHotels. Market development prioritizes the provision of reasonably priced yet comfortable accommodations, frequently utilizing technology to optimize processes and improve visitor satisfaction. Furthermore, in smaller cities and prominent tourist destinations, independent hotels and guesthouses continue to be substantial players, providing travelers with a more individualized and regionalized hospitality experience.
Key Companies in the Indian Hospitality market include
India Hospitality Industry Developments
March 2023: ITC's Hotel Group declared that its inaugural Mementos property, ITC Hotels in Ekaaya, Udaipur, would be inaugurated under the brand name Mementos.
January 2023: Marriott declared The Westin Resort and Spa, Himalayas, the inaugural property of Westin Hotels and Resorts, to open in the Indian state of Uttarakhand.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 25.3 Billion |
| Market Size 2023 | USD 26.6 Billion |
| Market Size 2032 | USD 39.2 Billion |
| Compound Annual Growth Rate (CAGR) | 5.0% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019-2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Segment, and Region |
| Countries Covered | India |
| Key Companies Profiled | Oberoi Hotels & Resorts, ITC Hotels, The Park Hotel, The Leela Palaces Hotels and Resorts, Taj Hotels, Lemon Tree Hotels, Hyatt Hospitality company, Marriott International, Inc, Radisson Hotel Group, and OYO Rooms |
| Key Market Opportunities | Tap into the growing demand for specialized healthcare services, offering accommodation packages tailored to medical tourists seeking treatment in India. Develop eco-friendly accommodation options and implement green practices to attract environmentally conscious travelers and capitalize on the trend towards sustainable tourism. |
| Key Market Dynamics | Supportive policies and investments in tourism infrastructure drive market growth. Rising incomes lead to higher consumer spending on travel and accommodation, fueling demand in the hospitality sector |
Frequently Asked Questions (FAQ) :
The India Hospitality market size was valued at USD 26.6 Billion in 2023.
The market is projected to grow at a CAGR of 5.0% during the forecast period, 2024-2032.
The key players in the market are Oberoi Hotels & Resorts, ITC Hotels, The Park Hotel, The Leela Palaces Hotels and Resorts, Taj Hotels, Lemon Tree Hotels, Hyatt Hospitality company, Marriott International, Inc, Radisson Hotel Group, and OYO Rooms.
The chain hotels category dominated the market in 2023.
The budget and economy had the largest share of the market.
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Senior Research Analyst I have a bachelor's degree in mechanical engineering and an mba. i have more than two years of expertise in the retail, food, and beverage, chemical, and material industries, and hence have developed a sound cross-domain expertise. a firm believer in lifelong learning and sharing of knowledge. having a proclivity for hatching ideas and trying to absorb as much information as possible in a short amount of time. introducing corporates to the data and insight, which enables them to move from probability to possibility, has been my key areas of interest.
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