Post-COVID Travel Boom : India’s domestic travel industry has rebounded strongly, with a 20-30% surge in tourism post-pandemic (Source: Ministry of Tourism). Work-from-home flexibility and a renewed focus on leisure have driven demand for weekend getaways and second homes in tourist hotspots.
Rising Domestic Tourism: India has witnessed a 30% increase in domestic tourism over the last five years (Source: Ministry of Tourism). With work-from-home and hybrid models, people are traveling more frequently, preferring unique and serene getaways.
Gen Z’s Focus on Experiences: Over 70% of Gen Z travelers prefer spending on experiences over material goods (Source: Booking.com). This shift has boosted demand for unique stays like private villas, eco-retreats, and short-term rentals, making holiday homes a high-demand asset.
Aspirational Indian Middle Class: Rising incomes and better connectivity are driving frequent travel among middle-class Indians. Affordable flights, improved highways, and digital booking platforms make short trips and long stays more accessible, boosting demand for holiday homes.
Key National Trends in Hospitality
Homestays, Airbnb properties, and boutique stays are growing rapidly, accounting for over 25% of India’s accommodation market.
Domestic travelers contribute to 88% of the total tourism market, with weekend getaways and staycations driving demand.
In 2022, Kerala welcomed approximately 15.8 million domestic tourists, reflecting its enduring appeal among travelers. Similarly, Goa attracted around 7.8 million visitors in the same year, underscoring its status as a premier destination. The consistent influx of tourists to these states highlights the robust demand for quality accommodations, presenting lucrative opportunities for investors in the hospitality sector.
Average Daily Rates (ADR) in India’s premium holiday rental segment have increased by 15-20% annually (Source: STR Global). Travelers are willing to pay more for private, well-located stays, making holiday homes a profitable investment.-Fractional ownership of holiday homes and hospitality assets is gaining traction, enabling investors to co-own high-value properties in popular destinations like Goa, Kerala, and the Himalayas. This model allows broader participation in the hospitality market.
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