How India Travels™ 2026The Homes Edit
previous reports
previous reports
What largely began as clusters of homestays in offbeat locations have now made inroads into cities, pilgrimage centres, cultural hubs, secondary towns and emerging travel corridors.
Alternative accommodation can help add capacity in
undersupplied destinations and during sharp bursts
of demand around major events.
The Market
Comes of Age
The Market
Comes of Age
The Market
Comes of Age
THE MARKET COMES OF AGE
THE MARKET COMES OF AGE
India’s travel canvas is so wildly varied that very few markets can match it. At the same time, the traveller's wallet is stretching beyond just reaching a destination and lodging. As travel becomes more experiential and dispersed, alternative accommodation finds a natural fit, adding new formats, unlocking new destinations and capturing a larger share of the experience economy.
India’s travel canvas is so wildly varied that very few markets can match it. At the same time, the traveller's wallet is stretching beyond just reaching a destination and lodging. As travel becomes more experiential and dispersed, alternative accommodation finds a natural fit, adding new formats, unlocking new destinations and capturing a larger share of the experience economy.
For your most recent leisure trip, did you actively compare alternative accommodations (homestays, villas, B&Bs, etc.) against traditional hotels?
Source: Booking.com How India Travels™ 2026 alternative accommodation consumer behaviour survey
62%
I compared both extensively
32%
I briefly looked at alternatives
4%
I only looked at one type (hotels OR alternatives,
not both)
2%
I had already decided on the type before searching
For your most recent leisure trip, did you actively compare alternative accommodations (homestays, villas, B&Bs, etc.) against traditional hotels?
Source: Booking.com How India Travels™ 2026 alternative accommodation consumer behaviour survey
62%
I compared both extensively
32%
I briefly looked at alternatives
4%
I only looked at one type (hotels OR alternatives,
not both)
2%
I had already decided on the type before searching
26%
26%
rise in the total number of digitally distributed alternative accomodation listings from FY 25
of travellers would book luxury stays, but only if bundled with deals, exclusive experiences, or loyalty-based benefits.
60-65%
60-65%
of entire-home alternative accommodation listings are studios or 1–2 bedroom homes
WIDER ACCEPTANCE
Its competition with traditional hotels is now at the trip planning stage, and travellers are actively considering it, even when it does not ultimately win the booking.
Moreover, travellers who considered booking an alternative accommodation but eventually booked a hotel, indicated they will actively reconsider their decision for their next trip.
26%
rise in the total number of digitally distributed alternative accomodation listings from FY 25
60-65%
of entire-home alternative accommodation listings are studios or 1–2 bedroom homes
WIDER ACCEPTANCE
Its competition with traditional hotels is now at the trip planning stage, and travellers are actively considering it, even when it does not ultimately win the booking.
Moreover, travellers who considered booking an alternative accommodation but eventually booked a hotel, indicated they will actively reconsider their decision for their next trip.
“We make an effort to tell the traveller that you have the same services (in a villa) that
you get in a five-star hotel, at a far better
per-person rate. You have your own private swimming pool, your own private dining table, your own private fresh food, unlike a hotel.”
“We make an effort to tell the traveller that you have the same services (in a villa) that you get in a five-star hotel, at a far better per-person rate. You have your own private swimming pool, your own private dining table, your own private fresh food, unlike a hotel.”
RITHWIK KHARE
Founder at Elivaas
“We make an effort to tell the traveller that you have the same services (in a villa) that
you get in a five-star hotel, at a far better
per-person rate. You have your own private swimming pool, your own private dining table, your own private fresh food, unlike a hotel.”
RITHWIK KHARE
Founder at Elivaas
THE STAY FOLLOWS THE OCCasion
THE STAY FOLLOWS THE OCCasion
THE STAY FOLLOWS THE OCCasion
THE STAY FOLLOWS THE OCCASSION
THE STAY FOLLOWS THE OCCASSION
Travellers choose accommodation based on who they are travelling with and the kind of experience they are seeking. Alternative accommodation appeals more to friend groups, larger families, and multigenerational travellers looking for space, privacy, and the ease of staying together.
Travellers choose accommodation based on who they are travelling with and the kind of experience they are seeking. Alternative accommodation appeals more to friend groups, larger families, and multigenerational travellers looking for space, privacy, and the ease of staying together.
What would be your primary motivation for choosing an alternative accommodation for a work trip?
Source: Booking.com How India Travels™ 2026 alternative accommodation consumer behaviour survey
41%
More Living Space And A Separate Bedroom/Workspace
40%
Ability To Easily Accommodate Family Members Or Colleagues Travelling With Me
39%
A More Authentic, Localised, Or Neighbourhood-Centric Experience
37%
Better Value/Cost-Efficiency For Long Stays
33%
Location Convenience (Closer To Site)
30%
Access To A Full Kitchen And Laundry Facilities
27%
Limited Hotel Availability
26%
Lower Cost Vs. Hotels
What would be your primary motivation for choosing an alternative accommodation for a work trip?
Source: Booking.com How India Travels™ 2026 alternative accommodation consumer behaviour survey
41%
More Living Space And A
Separate Bedroom/Workspace
40%
Ability To Easily Accommodate Family Members Or Colleagues Travelling With Me
39%
A More Authentic, Localised, Or Neighbourhood-Centric Experience
37%
Better Value/Cost-Efficiency For Long Stays
33%
Location Convenience
(Closer To Site)
30%
Access To A Full Kitchen And
Laundry Facilities
27%
Limited Hotel Availability
26%
Lower Cost Vs. Hotels
What would be your primary motivation for choosing an alternative accommodation for a work trip?
Source: Booking.com How India Travels™ 2026 alternative accommodation consumer behaviour survey
41%
More Living Space And A
Separate Bedroom/Workspace
40%
Ability To Easily Accommodate Family Members Or Colleagues Travelling With Me
39%
A More Authentic, Localised, Or Neighbourhood-Centric Experience
37%
Better Value/Cost-Efficiency For Long Stays
33%
Location Convenience
(Closer To Site)
30%
Access To A Full Kitchen And
Laundry Facilities
27%
Limited Hotel Availability
26%
Lower Cost Vs. Hotels
“Fully serviced, private luxury villas are emerging as a compelling form of alternative accommodation, particularly for multigenerational family holidays, intimate celebrations and group travel. We are seeing the same shift extend into the corporate segment, with close-knit teams choosing villas that offer an elevated degree of privacy & personalisation for focused offsites, strategic meetings and leadership discussions.”
DHIMAAN SHAH
Executive Director & Co-CEO,
Lohono Stays by Isprava Group
50%
50%
of travellers have stayed in alternative accommodation frequently for business travel.
of travellers have stayed in alternative accommodation frequently for business travel.
2%
2%
of travellers have not stayed in alternative accommodation and prefer hotels only for business travel.
OPPORTUNITY IN THE
BUSINESS TRAVEL SEGMENT
A significant share of homeowners surveyed claimed to host corporate/ business travellers at their property.
This claim is also supported by half of all business travellers surveyed confirming that they frequently choose alternative accommodation options during business travel.
“Fully serviced, private luxury villas are emerging as a compelling form of alternative accommodation, particularly for multigenerational family holidays, intimate celebrations and group travel. We are seeing the same shift extend into the corporate segment, with close-knit teams choosing villas that offer an elevated degree of privacy & personalisation for focused offsites, strategic meetings and leadership discussions.”
DHIMAAN SHAH
Executive Director & Co-CEO,
Lohono Stays by Isprava Group
“Fully serviced, private luxury villas are emerging as a compelling form of alternative accommodation, particularly for multigenerational family holidays, intimate celebrations and group travel. We are seeing the same shift extend into the corporate segment, with close-knit teams choosing villas that offer an elevated degree of privacy & personalisation for focused offsites, strategic meetings and leadership discussions.”
DHIMAAN SHAH
Executive Director & Co-CEO,
Lohono Stays by Isprava Group
50%
of travellers have stayed in alternative accommodation frequently for business travel.
2%
of travellers have not stayed in alternative accommodation and prefer hotels only for business travel.
OPPORTUNITY IN THE BUSINESS TRAVEL SEGMENT
A significant share of homeowners surveyed claimed to host corporate/ business travellers at their property.
This claim is also supported by half of all business travellers surveyed confirming that they frequently choose alternative accommodation options during business travel.
building enablers for the next phase
building enablers for the next phase
building enablers
for the next phase
BUILDING ENABLERS FOR THE NEXT PHASE
BUILDING ENABLERS FOR THE NEXT PHASE
India’s geographic and cultural diversity gives alternative accommodation a particularly wide runway. Government action is helping turn this potential into more structured growth through better access to finance, connectivity, destination infrastructure, and support for local enterprises.
India’s geographic and cultural diversity gives alternative accommodation a particularly wide runway. Government action is helping turn this potential into more structured growth through better access to finance, connectivity, destination infrastructure, and support for local enterprises.
“Access to finance remains critical for small homestay owners seeking to upgrade their properties and meet evolving standards. This could involve adding rooms, improving sanitation, or other amenities. A separate window for homestays was announced earlier under the Mudra framework and we used that opportunity to prepare practical guidance for owners. We realised that some potential applicants are not highly literate or comfortable navigating banking processes, therefore, we created a step-by-step storyboard explaining how to use the JanSamarth portal and apply for the loan.”
SHRI BHUVNESH KUMAR
Hon’ble Secretary of Ministry of Tourism, Government of India
POLICY AS A CATALYST FOR GROWTH
POLICY AS A CATALYST
FOR GROWTH
India’s geographic and cultural diversity gives alternative accommodation a particularly wide runway, spanning cities, pilgrimage centres, rural destinations and emerging tourism corridors. Government action is helping turn this potential into more structured growth through better access to finance, connectivity, destination infrastructure, and ease of compliance.
Initiatives such as
Initiatives such as
MUDRA
UDAAN
PM GATI SHAKTI
SWADESH DARSHAN 2.0
PRASHAD
are lowering entry barriers and supporting
new supply in underserved markets.
are lowering entry barriers and supporting
new supply in underserved markets.
20%
20%
of travellers would choose alternative accomodation
over hotels for a lower environmental footprint
23%
23%
of travellers would prefer alternative accomodation if the property used eco-friendly practices
CHOOSING SUSTAINABILITY ACTIVELY
Around one in five respondents choose alternative accommodation because of its impact on the environment, local economy, and livelihoods of hyperlocal communities. These priorities align closely with what the category can deliver through local sourcing, hyperlocal employment and more responsible use of destination resources.
“Access to finance remains critical for small homestay owners seeking to upgrade their properties and meet evolving standards. This could involve adding rooms, improving sanitation, or other amenities. A separate window for homestays was announced earlier under the Mudra framework and we used that opportunity to prepare practical guidance for owners. We realised that some potential applicants are not highly literate or comfortable navigating banking processes, therefore, we created a step-by-step storyboard explaining how to use the JanSamarth portal and apply for the loan.”
SHRI BHUVNESH KUMAR
Hon’ble Secretary of Ministry of
Tourism, Government of India
“Access to finance remains critical for small homestay owners seeking to upgrade their properties and meet evolving standards. This could involve adding rooms, improving sanitation, or other amenities. A separate window for homestays was announced earlier under the Mudra framework and we used that opportunity to prepare practical guidance for owners. We realised that some potential applicants are not highly literate or comfortable navigating banking processes, therefore, we created a step-by-step storyboard explaining how to use the JanSamarth portal and apply for the loan.”
SHRI BHUVNESH KUMAR
Hon’ble Secretary of Ministry of Tourism, Government of India
20%
of travellers would choose alternative accomodation
over hotels for a lower environmental footprint
23%
of travellers would prefer alternative accomodation if the property used eco-friendly practices
CHOOSING SUSTAINABILITY ACTIVELY
Around one in five respondents choose alternative accommodation because of its impact on the environment, local economy, and livelihoods of hyperlocal communities. These priorities align closely with what the category can deliver through local sourcing, hyperlocal employment and more responsible use of destination resources
recommendations
recommendations
recommendations
RECOMMENDATIONS
RECOMMENDATIONS
India’s alternative accommodation sector has done a tremendous job of gaining travellers’ interest across destinations and travel occasions. The market continues to grow, supply is expanding into newer destinations, and travellers are choosing homestays, villas and apartments for the space, privacy, flexibility and experience they offer.
- Reimagine accommodations by moving beyond the one-size-fits-all bed and board model that wields price as its only selling point.
-Tier-II, III cities and beyond are the next engines of growth
-As bookings continue to shift online, optimise digital storefronts to capture the widening shift
Strategic Priorities For
Alternative Accommodation
Strategic Priorities For Alternative Accommodation
Build a consistent and credible guest experience
Homeowners need to ensure that what guests see while booking matches with what they experience on arrival. Travellers may enjoy the individuality of alternative accommodation, but they do not want uncertainty.
Make digital distribution a core operating capability
Being online should extend beyond creating a listing. Properties need accurate descriptions, strong visual content, transparent pricing, verified reviews, live availability, responsive communication, and presence on channels where travellers are already searching.
Create a policy framework that supports formalisation and destination development
Policymakers have an opportunity to create a consistent framework which harnesses the vast potential of alternative accommodation. The sector can expand India’s tourism capacity, distribute visitor spending more widely and create livelihood opportunities at the local level.
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About Booking.com:
Part of Booking Holdings Inc. (NASDAQ: BKNG), Booking.com’s mission is to make it easier for everyone to experience the world. By investing in the technology that helps take the friction out oftravel, Booking.com’s marketplace seamlessly connects millions of travelers with memorable experiences every day.
For more information, follow @bookingcom on social media or visit globalnews.booking.com.
About Booking.com:
Part of Booking Holdings Inc. (NASDAQ: BKNG), Booking.com’s mission is to make it easier for everyone to experience the world. By investing in the technology that helps take the friction out oftravel, Booking.com’s marketplace seamlessly connects millions of travelers with memorable experiences every day.
For more information, follow @bookingcom on social media or visit globalnews.booking.com.