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One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchIndia’s alternative-accommodation sector is projected to reach ₹415 billion in gross booking value (GBV) by FY29, expanding at a 21.2% compound annual growth rate, according to a 2026 forecast from Booking.com and VIDEC Consultants reported by Moneycontrol. GBV is the value of bookings made through the market—not the profit earned by hosts, platform revenue or government receipts.
The category includes homestays, holiday homes and rentals, villas, apartments, serviced apartments, bed-and-breakfasts and aparthotels. Its growth is adding capacity where conventional hotels are scarce while changing how families, remote workers and business travellers use short-term accommodation.
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What the ₹415 billion forecast measures
| Indicator | Reported figure | How to read it |
|---|---|---|
| Alternative-accommodation GBV by FY29 | ₹415 billion | Total booking value forecast by Booking.com and VIDEC Consultants for the fiscal year labelled FY29 |
| Projected growth | 21.2% CAGR | Average annual growth implied by the forecast period |
| Broader Indian travel market | ₹8,200 billion | Forecast market context, not alternative accommodation alone |
| Share of lodging GBV | About 13% | Alternative accommodation’s reported share in the study |
| Digitally distributed listings | 102,200 in FY23 to 215,000 in FY26 | More than a doubling of listings distributed through digital channels |
| Search growth | 6% from FY24 to FY25 | Compared with 2% growth for hotels over the same period |
The listing count covers digitally distributed supply, so it should not be treated as a census of every homestay or rental operating in India. Likewise, GBV does not show host margins: cleaning, staffing, taxes, maintenance, financing and platform costs are deducted before an operator reaches profit.
Booking.com regional head for South Asia Santosh Kumar described the shift this way: “Alternative accommodation is no longer an ‘alternative’; it has become a core driver of modern travel culture across the country.”
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- Creating a record of who has visited the location and from where, which can be useful for marketing purposes.
- Encouraging interaction and conversation among guests
Why travellers are choosing homes and apartments
More usable space for groups
Separate bedrooms, kitchens and living rooms give families and groups options that a single hotel room often cannot. In the survey cited in the forecast, 41% of respondents selected additional living space as a motivation, while 40% cited capacity for family members or colleagues.
Longer and more flexible trips
Workcations, digital-nomad stays and other purpose-driven journeys make self-catering and a work area more valuable than a conventional overnight room. NITI Aayog reports that 87% of travellers were interested in extended trips, and 69% preferred lesser-known destinations.
Local and lower-impact experiences
Homestays can provide regional food, neighbourhood knowledge and direct cultural contact. Authentic local experiences were cited by 39% of surveyed travellers. A study cited by NITI Aayog found that 72% prioritised supporting local communities and 94% sought eco-friendly options, although those figures describe traveller preferences rather than completed bookings.
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Where supply is expanding fastest
Metropolitan areas and established holiday destinations still accounted for 46% of alternative-accommodation inventory in FY26. Growth is spreading into Tier-II cities, religious centres and emerging leisure markets rather than remaining concentrated in Goa and long-established hill stations.
| Location | Reported listing growth, June 2025–June 2026 |
|---|---|
| Greater Noida | 114%–179% |
| Ghaziabad | 86%–163% |
| Indore | 101%–131% |
| Ayodhya | 95%–108% |
The ranges reflect the measures reported for each location, not a single nationwide growth rate. They indicate how quickly new supply can appear around business corridors, pilgrimage traffic and newly popular destinations when digital distribution lowers the barrier to market entry.
Business travel is becoming a larger use case
Business travellers generated 19% of alternative-accommodation room nights in FY26, with the forecast projecting 21% in FY27. Apartments and homes can suit project teams, relocating employees and longer assignments because they combine sleeping space with kitchens, living areas and informal meeting space.
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Operators are also adopting booking, pricing and guest-management software. Across Bengaluru, Goa, Hyderabad, Jaipur, Mumbai, Pune and Siliguri, properties with high dynamic-pricing scores reported 108% to 190% higher revenue per available room than fixed-pricing properties. This is an observed comparison, not proof that dynamic pricing alone caused the difference; location, property quality, seasonality and management practices may also explain the gap.
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1Fix the driver behind crashes, sound loss and screen glitches2Clear out junk files and repair common Windows errors3Scan for outdated or missing drivers - takes under a minuteWhy India needs additional accommodation capacity
A 2025 NITI Aayog report, drawing on Ministry of Tourism material, identifies a shortage of more than 200,000 hotel rooms. Homestays and bed-and-breakfasts can add rooms with less capital than a new full-service hotel, particularly in peak-demand or underserved locations.
Several other measures illustrate the sector’s economic footprint, but they are not interchangeable with the ₹415 billion GBV forecast:
- Cognitive Market Research estimated Indian homestay-market revenue at ₹4,722 crore in 2024, with an 11.0% CAGR projected for 2024–2031.
- MakeMyTrip figures cited by NITI Aayog put homestays at 10% of hotel room-night sales and more than 100,000 rooms.
- An Oxford Economics study cited by NITI Aayog estimated that Airbnb contributed ₹7,200 crore to India’s GDP and supported more than 85,000 jobs in 2022; its guests spent ₹6,400 crore in India that year.
Different studies use different definitions, channels, currencies and accounting methods. Their figures should therefore be read as separate indicators of activity, not added together.
How the main accommodation formats differ
| Format | Typical value for guests | Checks before booking |
|---|---|---|
| Homestay | Host interaction and local knowledge; may suit travellers seeking an immersed experience | Whether the host lives on-site, private-bathroom arrangements, house rules and support hours |
| Holiday home or rental | Privacy and a full home layout for families or longer stays | Kitchen equipment, cleaning schedule, deposit terms and exact access instructions |
| Villa | Large shared spaces for groups, often in leisure destinations | Occupancy limits, transport access, security and whether amenities are private or shared |
| Apartment or serviced apartment | Residential space with varying levels of housekeeping; useful for work and extended stays | Workspace, internet details, service frequency, power backup and building access |
| Bed-and-breakfast | Room-based lodging with a breakfast component and a smaller operating scale | Breakfast inclusions, check-in window, room size and cancellation policy |
| Aparthotel | Apartment-style rooms combined with hotel-style reception or services | Which services are included, front-desk hours and any housekeeping or facility fees |
What hosts must get right
Fast supply growth does not guarantee a good guest experience. The forecast identifies execution and trust as the sector’s main conditions for durable expansion. A host preparing to list should verify:
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- Photos, floor plans, amenities, occupancy limits and location details match the property.
- Check-in instructions work outside office hours and include a dependable local contact.
- Cleaning, linen changes, pest control, water, power and waste disposal are handled consistently.
- Guest questions and urgent problems have a defined response process.
- Locks, fire precautions, privacy, neighbourhood rules and emergency information protect guests and neighbours.
- Pricing reflects seasonality and demand without creating surprise fees.
- Registration, tax and local permissions are completed under the applicable state and municipal rules.
Access to finance is another constraint. NITI Aayog highlights PM MUDRA assistance and the need for capital to improve sanitation and amenities, especially for small operators outside major tourism centres.
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Regulation remains fragmented
India does not have one uniform homestay and bed-and-breakfast regime. NITI Aayog says state rules vary, registration may involve multiple stakeholders and approvals can be delayed. Its policy framing calls for transparent, light-touch systems that still protect tourist and homeowner safety, preserve heritage, build regulator and host capacity and integrate digital platforms.
For travellers, that means a listing’s presence on a platform is not by itself proof of identical licensing or safety standards across states. For hosts, the relevant authority may be a tourism department, local body or another designated agency, so requirements must be checked for the property’s specific jurisdiction.
What FY29 could mean for travellers and hosts
If the 21.2% growth path is achieved, travellers should see more choice beyond India’s established hotel districts: larger homes for family trips, work-ready apartments, stays near pilgrimage sites and accommodation in cities that previously had limited formal supply. More listings also make review quality, cancellation terms, verified contact details and transparent total pricing increasingly important when comparing options.
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For hosts, the opportunity is substantial but operational rather than purely speculative. Demand is moving toward space, flexibility and distinctive local experiences; the properties most likely to retain guests will pair those advantages with accurate information, dependable service, safe premises, compliant registration and disciplined pricing. The ₹415 billion figure is therefore best understood as a forecast of booking activity—and a signal that alternative stays are becoming a core part of India’s lodging infrastructure.
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