Homestays, apartments and holiday rentals are gaining favour as Indian travellers seek more space, local experiences and better value on trips. (Canva.com)
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Indian travellers are increasingly choosing homestays, apartments and holiday rentals, with alternative accommodation projected to reach ₹415 billion by FY29.
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.
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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
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A hotel room may offer convenience, but many travellers now want their accommodation to feel connected to the destination itself.
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A hotel room may offer convenience, but many travellers now want their accommodation to feel connected to the destination itself.
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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
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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.
Neha Khandelwal
Content Lead, HT Travel | Travel & Lifestyle Journalist
With over 10 years of content writing experience, Neha Khandelwal is a lifestyle journalist and the Content Lead at HT Travel. She specialises in destinations, hotels, aviation, luggage, travel gear, and practical guides that help readers plan smarter and travel better. Her work combines first-hand experience, expert insights, and extensive research to create stories that are informative, useful, and easy to follow. Career Journey & Experience
Neha began her writing career as a freelance journalist in 2010 before entering mainstream media with The Times of India in 2022. She later joined Hindustan Times, where she has written extensively across travel, lifestyle, home, and consumer trends. Her professional background extends beyond journalism. Before moving into digital media full-time, she spent nearly a decade in interior design, managing residential projects from concept to execution. She also trained in visual merchandising with Shoppers Stop and Pantaloons and worked with women-led startups across design and operations. These experiences continue to shape her storytelling, especially in how she evaluates hotels, design-led stays, hospitality spaces, and travel experiences. A naturally curious learner, Neha has completed beginner certifications in pottery, scuba diving, baking, creative writing, and other creative pursuits. She has read more than 2,000 books, trained in Bharatanatyam for 8 years, and ghostwritten a book on Ladakh tourism. Subject Expertise
Travel is at the heart of Neha's work. She covers destinations, hotels, airlines, luggage, packing strategies, travel accessories, and emerging travel trends through a mix of reporting, product testing, and conversations with industry experts. A frequent traveller herself, she approaches every trip with a journalist's curiosity and a planner's mindset, focusing on experiences that readers can realistically recreate. From choosing the right cabin bag to decoding hotel openings and destination trends, her writing prioritises practical advice over promotional claims.
Her background in interior design also gives her a distinct perspective on architecture, hospitality design, boutique hotels, luxury stays, and thoughtfully designed spaces. Education & Professional Background
Neha holds a Master's degree in Interior Design. Her early experience in interior design, visual merchandising, and design operations gives her a unique understanding of aesthetics, functionality, and user experience, adding depth to her coverage of hotels, resorts, and travel spaces. Editorial Philosophy
"As an avid, research-driven traveller, my goal is simple. To answer the questions you actually have before booking a trip. I cut through the promotional noise with honest reporting and expert insights. Making travel planning seamless, smart, and reliable so you always know where to go next."
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