Indian Hoteliers Expect Positive Business Growth Amid Global Uncertainties and Rising Demand

Many hoteliers anticipate business growth in the upcoming months, showing optimism despite global uncertainties. This positive outlook is largely due to increased demand from tier III markets, new investments, and event-driven travel, according to a report by Booking.com. The third edition of the India Accommodation Barometer, created with Statista, indicates that 75% of hoteliers foresee positive business development, an increase from 69% in 2024.

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Booking.com's Regional Manager for South Asia, Santosh Kumar, noted the industry's ongoing momentum. "Our industry continues to build momentum, marked by resilient demand and steady optimism. From the rise of tier III cities to the adoption of AI, India's accommodations are meeting challenges with proactive innovation," he stated. Tier III cities exhibit the most positivity in terms of occupancy rates, average daily rates (ADR), and future outlook.

Event-Driven Travel and Investment Plans

The report highlights that event-driven travel is significantly boosting bookings during low-demand periods. About 56% of hoteliers reported increased bookings due to events, while 41% noted improved revenue per room. Consequently, 49% plan to collaborate with event organisers and 45% with tourism boards and local authorities to maintain this momentum. Investment intentions remain strong, with 48% planning to increase capital expenditure.

The survey conducted by Statista included responses from 285 executives and managers in India's travel accommodation sector between July 7 and September 1, 2025. The findings show that hoteliers are optimistic about AI but less confident in its operational applications like pricing and revenue management (39%) and housekeeping scheduling (35%). This reflects a cautious approach focused on return on investment (ROI).

Challenges in Technology Adoption

Adopting new technologies presents challenges such as system integration complexity (36%), high implementation costs (35%), and unclear ROI (35%). These factors contribute to a cautious approach among hoteliers when considering technological advancements.

In tier I cities, hiring momentum is driven by operators expanding teams to meet growing demand. While operational roles are easier to fill, skill gaps and salary pressures highlight the need for upskilling. Hoteliers are investing more in training to prepare their workforce for future demands.

Addressing Skill Shortages

In tier III cities, 67% of accommodations identify skill shortages as a primary hiring concern. To address this issue, 41% are increasing their training budgets by combining in-house development with external learning support.

The report underscores the industry's resilience and adaptability amid challenges. By focusing on innovation and strategic partnerships, Indian accommodations aim to sustain growth and meet evolving market demands effectively.

With inputs from PTI