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.
A hotel room may offer convenience, but many travellers now want their accommodation to feel connected to the destination itself. The trend is also spreading beyond familiar holiday destinations. That could become particularly significant in places where hotel supply struggles to keep pace with visitor numbers.
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. 87% of travellers surveyed said alternative stays can help create more meaningful holiday memories, according to the research. 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. 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. The report cites NITI Aayog’s 2025 homestay report, which estimates that India has a shortage of more than 200,000 hotel rooms.
5 reasons your next family holiday should be to Hong Kong: From easy flights and Indian food to Disneyland fun 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.
