Noesis, India’s leading hotel investment advisory firm presents a‘ Home away from Home’ report – luxury homestay and villa stay sector report – that highlights the trend and opportunity in the luxury rental and boutique homestay sector.
According to the report, the potential for luxury homestays in India is tremendous. While India’s travel market is projected to grow from 11% to 11.5% which has reached around a whopping 48 billion dollars in 2020.
India still needs to add 2.5 million rooms in the homestay segment as reflected by an increase in foreign tourists’ arrival in 2017 which was 16.81 million to 17.81 million in 2019.
Airbnb, Oyo, Vista rooms have already extended their services in this market segment. This paper also portrays a few hospitality brands which have already extended their services in the homestay segment or are in the development stage and also the business model they work on and the requirement and checklist to start a homestay or luxury and boutique rental.
This concept will help hospitality brands to diversify to expand their portfolios as well as help the local population to monetise on their unused assets.
This will also help fill in the gap of demand and supply as well as help brands to reach remote areas where development of the area is slow. This is also a sustainable method of development as it will provide a source of income to many in the surrounding areas.
According to Airbnb India data, travellers are exploring new experiences when they travel. The flexible destinations featured on the Airbnb platform are also helping travellers explore and spotlight interesting places near and far. In addition, their data show a rising interest in unique accommodations.
“Development of the organized luxury rental sector in India is pivotal for the growth of the economy, especially in the underdeveloped and rural areas. This is an untapped industry with major potential and the early adapters will no doubt benefit greatly from it” says Nandivardhan Jain, CEO, Noesis Capital Advisors.
The worldwide luxury travel market was worth $945.6 billion in 2019 and is predicted to increase at a CAGR of 11.1 percent between 2021 and 2027, reaching $1,198.3 billion in 2027.
Luxury travel services provide the most desired and premium experience in terms of opulent lodgings, easy transportation, and unique travel experiences. The service providers strive to give exceptional services to their customers. The luxury travel business has emerged as one of the fastest expanding industries, greatly contributing to global economic growth and development.
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