India travel market shows growth in alternative accommodations and international interest

Recent industry reports highlight significant shifts and growth within the Indian travel sector. According to Skyscanner’s Travel Trends 2027 report, Indian travelers are increasingly prioritizing value and specific experiences, such as wellness, culture, and history. Despite economic shifts, 58% of Indian travelers plan to increase international travel in 2027, with many adapting their spending toward flights and accommodation. Additionally, 87% of Indian travelers express confidence in using AI for travel planning.

Parallelly, a report from Booking.com, prepared with Videc Consultants, projects that India’s alternative accommodation market—including villas, homestays, and apartments—will grow at a compound annual growth rate of 21.2% to reach INR 415.1 billion by FY29. This segment is expected to outpace the overall accommodation market. Key drivers for this demand include multigenerational family travel, group holidays, and longer stays, though officials note that supply is currently struggling to keep pace with this exploding demand.