India's alternative accommodation market set to double by 2029

India's alternative accommodation market is poised for significant expansion in the coming years, according to new industry analysis. Gross booking values for non-traditional lodging options—including homestays, vacation rentals, and other peer-to-peer accommodation services—are expected to reach $4.7 billion by FY29, reflecting robust growth across the sector.

The expansion is being fueled by evolving travel patterns among Indian consumers, particularly a surge in business travel to secondary and tertiary cities. As corporate professionals increasingly explore tier-2 and tier-3 urban centers, demand for flexible and cost-effective accommodation alternatives has intensified beyond traditional hotel offerings.

The shift toward alternative lodging reflects broader changes in how Indian travelers approach their journeys. Smaller cities are emerging as key growth markets, as improved connectivity and business opportunities drive increased visitor arrivals. Alternative accommodations offer travelers greater flexibility, authentic local experiences, and often more competitive pricing compared to conventional hospitality options.

The growth trajectory underscores the maturing nature of India's travel and tourism sector, with alternative accommodation providers increasingly capturing market share from established hotel chains. As digital penetration deepens and consumer preferences evolve, the segment is expected to continue its upward trajectory, reshaping India's hospitality landscape in the process.