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Hospitality Industry In India Market Size (2024 - 2029)

The market size of the hospitality industry in India is set to grow significantly, with a robust CAGR expected during the forecast period. This growth is attributed to the country's rich culture and diversity, which attracts tourists globally, and the increasing domestic travel due to a growing middle class with rising disposable income. Changes in hospitality scenarios, such as flexible check-in and check-out options, have also contributed to the industry's growth. Despite the COVID-19 pandemic's severe impact on the hotel sector, the government has taken measures to incentivize stakeholders and promote domestic tourism, ensuring the market's continuous growth. India's ranking in the World Economic Forum's travel and tourism competitiveness index and the Ease of Doing Business index also indicate a favourable environment for the industry's expansion.

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Market Size of Hospitality Industry In India

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Hospitality Industry in India Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 247.31 Billion
Market Size (2029) USD 475.37 Billion
CAGR (2024 - 2029) 13.96 %
Market Concentration Medium

Major Players

Hospitality Industry In India Major Players

*Disclaimer: Major Players sorted in no particular order
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India Hospitality Market Analysis

The Hospitality Industry In India Market size is estimated at USD 247.31 billion in 2024, and is expected to reach USD 475.37 billion by 2029, growing at a CAGR of 13.96% during the forecast period (2024-2029).

India has been successful as a leading global destination for leisure and business travelers, which has undoubtedly positively impacted the country's hospitality sector. 

India’s attractiveness as a global travel destination has been further enhanced by its geopolitical stability, world-class infrastructure, and commitment to hosting international events. Therefore, these factors contribute to the growth of the tourism industry and, as a result, keep the hospitality industry firm.

India’s domestic tourism has shown remarkable resilience and strength, and an increasing preference for staycations among Indian residents has been noticed. This preference for staycation is driven by several factors, including convenience, safety, and the opportunity to discover hidden gems within India.

The growth rate of the hospitality and tourism sector has seen a notable increase. India is included in the list of the top 100 countries with favorable conditions for conducting business (EoDB) and holds the first globally regarding greenfield FDI ranking. To enhance the cruise tourism industry, the Government of India (GoI) has chosen to develop the Chennai, Goa, Kochi, Mangalore, and Mumbai ports as cruise tourism hubs. These ports will have various amenities such as hospitality services, retail outlets, shopping centers, and restaurants.

India Hospitality Industry Segmentation

Hospitality is the term used to describe the connection between a host and a guest, where the host shows kindness towards the guest. This involves receiving and amusing guests, visitors, or unfamiliar individuals. A complete background analysis of the hospitality industry in India, which includes an assessment of the industry associations, overall economy, emerging market trends by segments, significant changes in the market dynamics, and market overview, is covered in the report. The Indian hospitality industry is segmented by type. The market is segmented into chain hotels and independent hotels. The market is segmented into service apartments, budget and economy hotels, mid- and upper-middle-middle-scale hotels, and luxury hotels. The report offers market size and forecasts in value (USD) for all the above segments.

By Type
Chain Hotels
Independent Hotels
By Segment
Service Apartments
Budget and Economy Hotels
Mid and Upper Mid-Scale Hotels
Luxury Hotels

Hospitality Industry In India Size Summary

The Indian hospitality industry has seen moderate growth over the past few years, with the potential for further expansion. The nation's rich culture and diversity attract tourists from all over the world, positioning India as a hotspot for spiritual tourism. The growing middle class, increased disposable income, and interest among millennials to travel domestically have contributed to the profitability of the domestic travel industry. Companies like Airbnb and Oyo Rooms have transformed the hospitality landscape globally, offering affordable stays in prime locations with flexible check-in and check-out options to cater to the increasing number of travelers. Despite the challenges posed by the COVID-19 pandemic, the hospitality and tourism industry in India continues to grow, contributing significantly to the GDP. The Indian government has taken several initiatives to bolster the sector, including the development of cruise tourism hubs and financial support for stakeholders to promote domestic tourism. The hospitality market is being driven by an increase in hotel projects, while the government's focus on expanding the tourism industry is expected to further drive market growth. The Indian hospitality sector, which includes major international and domestic players, holds great potential for growth and expansion.

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Hospitality Industry In India Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Growth in Travel and Tourism in India

      2. 1.2.2 Increase in the Number of Hotel Projects

    3. 1.3 Market Restraints

      1. 1.3.1 Lack of Skilled Labor is a Challenge for the Market

      2. 1.3.2 Sustainability and Competition Threaten Industry Success

    4. 1.4 Market Opportunities

      1. 1.4.1 Government Initiatives to Expand the Horizons of the Industry

      2. 1.4.2 Online Marketing can be Leveraged to Expand the Customer Base

    5. 1.5 Impact of COVID-19 on the Hospitality Industry

    6. 1.6 Insights Into Revenue Flows from Accommodation and Food and Beverage Sectors

    7. 1.7 Leading Cities in India with Respect to Number of Visitors

    8. 1.8 Investments (Real Estate, FDI and Others) in Hospitality Industry

    9. 1.9 Technological Innovations in the Hospitality Industry

    10. 1.10 Shared Living Spaces Impact on the Hospitality Industry

    11. 1.11 Insights Into other Economic Contributors to the Hospitality Industry

    12. 1.12 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.12.1 Bargaining Power of Buyers

      2. 1.12.2 Bargaining Power of Suppliers

      3. 1.12.3 Threat of New Entrants

      4. 1.12.4 Threat of Substitutes

      5. 1.12.5 Intensity of Competitive Rivalry

    13. 1.13 Insights Into Types of Tourism and Travel Agencies Present in India

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Chain Hotels

      2. 2.1.2 Independent Hotels

    2. 2.2 By Segment

      1. 2.2.1 Service Apartments

      2. 2.2.2 Budget and Economy Hotels

      3. 2.2.3 Mid and Upper Mid-Scale Hotels

      4. 2.2.4 Luxury Hotels

Hospitality Industry In India Market Size FAQs

The Hospitality Industry In India Market size is expected to reach USD 247.31 billion in 2024 and grow at a CAGR of 13.96% to reach USD 475.37 billion by 2029.

In 2024, the Hospitality Industry In India Market size is expected to reach USD 247.31 billion.

Indian Hospitality Market Report Snapshots

Hospitality Industry in India Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)