Feasibility Study And Market Research Help In Starting A Homestay, Rental Villa, And Hospitality Business In India

Indian tourism is reviving, backed by the growth in economy, surge in employment market, and growing importance of rejuvenation among Indian households. In 2022, the contribution of tourism in Indian GDP amounted to 9.2%, up by 7% in 2020. It created a total of 44.5 million jobs during the same time period. 

In 2023, foreign tourist arrival in India amounted to 9.2 million, growing at a rate of over 60% in the 12 months. As the Market Research For Hospitality Sector is done, domestic tourist number has amounted to ~2000 million. Besides leisure and business tourism (business retreats, MICE, etc.), other forms of tourism such as wellness, weddings events, weekend gateways, medical purpose, spiritual, etc. are also thriving. Few years back, these were in peripheries. However, now they are becoming more main stream, underscoring the rich tapestry of Indian tourism market. 

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Hospitality Industry is Thriving in India

As tourism is spiraling, incremental growth visible in hotel demand and thus, Market Research For Hotel Industry is essential. Average occupancies are rising across various categories of hotels, from budget accommodations to premium 5-star assets. Average occupancy has reached ~70% in India, much higher than the post-pandemic period, when it was in the range of 30-35%. 

The concept of Bleisure is becoming popular, where in many corporate professionals wants to indulge in leisure activities and explore nearby places, once business meetings are over. India’s destination wedding market is also booming, which is further helping the hotels register higher growth. The destination wedding industry in India is presently pegged at around USD 50 billion, making it the second biggest market in the world after USA. 

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Meanwhile India’s current supply of hotel is still lesser than the growing demand and needs to get the Feasibility Study Of Hotel. India has presently 165,000 hotel rooms with additional supply lines of around 35,000 rooms, slated to enter by 2028. This is not sufficient to manage the growth in tourism number. 

Homestay becoming a complimentary force to mainstay hospitality

The Homestay segment is thriving in India. It is growing both vertically as well as horizontally. The conventional definition of a homestay built in traditional houses with fresh home-cooked meal, a comfy stay, and a chance to interact with local people are also evolving. 

Modern homestays offer much more. New homestays are built in bungalows, coffee or tea plantations, vintage havelis, and farmhouses, etc. They offer picturesque views amid tranquil environs and natural endowments. They are becoming an essential part of the hospitality landscape becoming a complimentary force to mainstay hospitality. So, it gets important to do the Feasibility Study Of Homestays. 

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Mentioned below are the factors that are driving the homestays market in India

• Many Indian households now don’t want to stay in a compact 250-300 sq. ft. hotel room. Rather they now prefer more personalized, comfortable, and private spaces in homestays, and rental villas. In a homestay they can enjoy a more tailor made hospitality rather than signature services. 
• Homestays are no more just limited to a single customer segment. From millennial remote workers to multi-generational families, many now prefer to stay in homestays during vacations. Thus, getting the Feasibility Study Of Homestays.
• The rise in WFH culture now allow many corporate, freelancers, technopreneurs,   media professionals stay in idyllic environs and continue working. This not only enables them to work seamlessly but also immerse in nature and refresh their mind and body. 
• The concept of weekend gateways is now increasing amongst Indian households. The pandemic has taught Indians the importance of having regular breaks, taking care of their physical & mental wellbeing, and striking the right work-life balance. This is making weekend gateways very popular. During extended weekend many hotels and homestays now operate at 100% occupancy, this was revealed through Feasibility Study Of Hotel.
• The trend of concurrent rental incomes are rising amongst affluent and higher mid-income households, NRIs, and business owners. They are investing readily in second home properties, farm stays, villas, etc. in picturesque location. Besides personal use for a month or two in a year, such properties can be leased out for rest of the year making attractive rental yields. 
• Growing organization in the segment is also incentivizing many property owners to explore the lucrative business. After the Market Research For Hospitality Sector, Recent years have seen emergence of 3^rd party operators such as Saffron Stays, Lohono Stays, Rental gram, Stay Vista, etc. which are helping property owners to design, manage, and market their properties. 

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Market research for the emerging homestay segment in India

If you are a hospitality business owner, private home owner, or a discerning investor looking to enter the homestay segment (or related business ventures such as rental villas, farm stays, etc), The India Watch can be of help to get your Market Research For Hotel Industry done and many more other services. We can assist you with a feasibility study reports, market research advisories, commercial viability report, etc. 

For any further assistance, feel free to drop us a mail at info@theindiawatch.com 

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