India’s hospitality industry is on the cusp of a transformative era. Long recognized as a key tourism market, India is now accelerating into a new phase of growth driven by a rising middle class1 (projected to expand from 31% in 2024 to 60% by 2047), a 50% jump in disposable income by 2030, and improved connectivity across regions.
This economic momentum is mirrored in numbers: India’s hotel industry2 is set to cross ₹1 trillion ($11.7 billion) in revenue by FY25 and reach ₹1.1 trillion ($13 billion) by 2026–27. These are not just milestones, they reflect the rapid pace of change and rising expectations across the ecosystem. This raises an important question: how can hotels deliver more meaningful value – to guests, owners, and the industry at large?
A Shift in Value Creation: Accenture’s latest global study3 outlines four imperatives that will shape the next chapter in hospitality:
- Redefining revenue beyond room rates
- Elevating loyalty as a growth engine
- Strengthening brand-owner relationships
- Embedding technology across operations
The opportunity is clear. But the winners will be those who turn strategy into scalable action.
Momentum in Motion: Global and Indian hotel brands are already pivoting. Marriott has over 100 properties3 in the pipeline for 2025 and has launched its new midscale brand—Series by Marriott4—in India. Hilton and IHG are entering Tier-2 and Tier-3 markets, responding to growing demand from newly urbanized populations. Accor’s CEO, Sébastien Bazin4, views India’s middle class as a game-changer for global growth and is urging the sector to respond with higher ambition.
Homegrown giants like Taj, ITC, and others are not standing still. They are rolling out boutique formats, scaling through asset-light models, and exploring alternative lodging. The hotel landscape is not just expanding – it is modernizing to align with the aspirations of the contemporary Indian traveler.
The New Indian Guest: This transformation is customer-led. Today’s travelers are multifaceted – seeking personalization, authenticity, and richer experiences. Accenture’s global survey of 600 hotel executives (including Indian respondents) identifies four emerging guest behaviors in India:
- Group Travel (71%): Family, multi-generational, and blended group vacations
- Solo Travel (67%): Increasing preference for self-guided exploration
- Work+Travel (65%): Extended stays, remote work, co-living/co-working
- Experience-led Tourism (60%): Wellness, cultural immersion, offbeat destinations
Hotels are evolving in response. They are curating local excursions, enhancing inclusivity, and redesigning room formats. Many are also expanding into underexplored destinations to tap into demand for authentic, local experiences.
Redefining revenue beyond room rates: Change isn’t limited to guest experiences. The business model itself is undergoing reinvention. All Indian hoteliers surveyed say they are actively rethinking revenue strategies.
Top investment areas include extended-stay formats and alternative lodging – with a planned +31% increase over the next 2–3 years. For instance, Indian Hotels Company Limited6 (IHCL), parent of Taj and Vivanta, aims to grow topline revenue by 12–15% in FY26, open 30 new properties, and generate ₹800–1,000 crore from new lines like Ginger, Qmin, and homestays. IHCL’s 36% share price growth and 35% margins reflect a strong, strategic pivot.
Confidence in this shift is widespread: 76% of Indian hoteliers expect revenue boosts from new models in the next year. Investment priorities include:
- Automated guest feedback and sentiment analysis (+29%)
- Sales-oriented contact centers (+21%)
- Membership and subscription models (+17%)
- Gamified loyalty strategies (+17%)
The message is clear: hotels are evolving from room providers to holistic value creators.
Elevating loyalty as a growth engine: One of the biggest untapped levers is loyalty. While most hotels offer loyalty programs, only 31% see them as core revenue drivers. Yet 55% rely on them for customer retention.
This signals a missed opportunity. Today’s guests expect more than points. They want immediate rewards, personalized perks, and brand engagement across all touchpoints. With 86%7 of Indian consumers valuing experience as much as product, the next wave of loyalty must be experiential and digitally enabled.
Leading programs like Oberoi One, Marriott Bonvoy, and Club ITC are expanding to include wellness, dining, and brand partnerships. But the real shift will come when loyalty is viewed not as a cost center, but a high-impact growth lever.
Embedding technology across operations: Technology now sits at the heart of transformation. No longer a support function, it is a strategic enabler of scale, service, and personalization. Hotels are investing in unified booking platforms that let guests seamlessly bundle stays, spa, dining, and experiences. An overwhelming 93% of Indian hoteliers plan to adopt such systems. The goal: not just operational efficiency, but delight at scale.
Yet technology alone isn’t enough. Its success depends on alignment across strategy, systems, and people. When all three are synchronized, the result is consistent, high-quality service and new revenue potential.
India’s Moment to Lead: India is not just entering the next chapter of hospitality—it is poised to shape it. Reinvention here does not mean erasing legacy. It means enhancing it with insight, agility, and innovation. With the right blend of traveler understanding, business model experimentation, loyalty reinvention, and tech-forward execution, India’s hospitality industry can go beyond participation. It can lead.
Sources:
- skift.com/2024/01/09/is-the-world-ready-to-meet-the-indian-middle-class-megatrends-2024/
- skift.com/2025/05/20/indian-hotel-industry-to-reach-13-billion-by-2027-whats-driving-this/
- www.bwhotelier.com/article/indias-growing-market-fuels-hospitality-boom
- www.cnbctv18.com/business/marriott-india-new-brand-series-by-marriott-concept-hospitality-partnership-19609100.htm
- https://skift.com/2024/04/15/accors-sebastien-bazin-bets-big-on-indias-middle-class/
- https://www.cnbctv18.com/market/earnings/indian-hotels-targets-12-15-revenue-growth-%E2%82%B91000-crore-from-new-businesses-in-fy26-19599642.htm
- https://skift.com/2024/01/09/is-the-world-ready-to-meet-the-indian-middle-class-megatrends-2024/
 Siva Viswanathan, FICCI Member and Managing Director, Travel Americas, Accenture, Advanced Technology Centers in India (ATCi) and Siva Viswanathan | LinkedIn |  Manish Ahuja Assistant Secretary General & Head – Tourism & Culture and Sports Federation of Indian Chambers of Commerce and Industry (FICCI) Manish Ahuja | LinkedIn |
 Sankar Subramaniam, FICCI Member and Senior Principal, Global Travel Research Lead, Accenture, Advanced Technology Centers in India (ATCi) Sankar Subramaniam | LinkedIn |  Neha Sansanwal, FICCI Member and Travel Research Associate Manager, Accenture, Advanced Technology Centers in India (ATCi) Neha Sansanwal | LinkedIn |
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