Hotels are no longer the automatic first choice for Indian travellers. Homestays, holiday rentals and apartments are moving firmly into the mainstream, and the numbers suggest this shift has plenty of room to grow.
Booking.com and travel research firm VIDEC Consultants have released the fourth edition of How India Travels 2026, The Homes Edit, looking at how Indians are choosing alternative accommodation and what is driving the change.
- The big number? India’s alternative accommodation segment is projected to reach a Gross Booking Value of ₹415 billion by FY29. That sits within a much larger Indian travel market expected to be worth ₹8,200 billion.
- Supply has already grown sharply. Digitally distributed alternative stay listings increased from 102,200 in FY23 to 215,000 in FY26. The category currently accounts for around 13% of lodging Gross Booking Value, but online interest is rising too. Searches for alternative accommodation grew 6% between FY24 and FY25, compared with 2% for hotels.
Travellers want more from their stay
A hotel room may offer convenience, but many travellers now want their accommodation to feel connected to the destination itself.
According to the research, 87% of travellers surveyed said alternative stays can help create more meaningful holiday memories. Around 85% associated them with authentic local experiences, while 83% felt they worked well for families and groups. Value for money was another factor for 83% of respondents.
The trend is also spreading beyond familiar holiday destinations. Nearly 46% of alternative stay inventory is still concentrated across major metros and established holiday spots, but other cities are catching up quickly. Between June 2025 and June 2026, listings more than doubled in Greater Noida, Ghaziabad, Indore and Ayodhya.
That could become particularly significant in places where hotel supply struggles to keep pace with visitor numbers. The report cites NITI Aayog’s 2025 homestay report, which estimates that India has a shortage of more than 200,000 hotel rooms.
Work trips are changing too
Alternative stays are not limited to family holidays and group getaways. Business travellers accounted for 19% of bookings in FY26, a figure projected to increase to 21% by FY27.
For professionals, extra space appears to matter. About 41% cited additional living space and a separate bedroom or workspace as a key reason for choosing such properties. Another 40% valued being able to accommodate family members or colleagues.
Apartments and aparthotels can make particular sense for longer work trips, giving travellers space to work, live and meet without being confined to a conventional hotel room.
The category is becoming more organised as hosts use digital booking platforms, pricing technology and professional property management. For travellers, though, the basics will remain important. Accurate listings, consistent quality, easy check-ins, and reliable guest support could ultimately determine how many people are willing to swap the familiar hotel experience for a home, apartment, or holiday rental.
