75% hoteliers expect positive business development, up from 69% in 2024: Booking.com
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Tier-3 cities lead in occupancy, ADR and future outlook, along with continued momentum among large (83%) and chain hotels (78%).
Booking.com, in partnership with Statista, released the third edition of its annual India Accommodation Barometer, offering insights from travel leaders across the country focused on current outlook, opportunities and challenges facing the industry. This year, the report highlights rising investments, hirings dynamics, technology adoption trends and demonstrates how Tier-3 cities drive growth.
Indian accommodation providers are entering 2026 with strong confidence, supported by solid performance indicators and a positive outlook. 68% of Indian accommodations rate their past performance as good or very good and 64% view their current economic situation with similar positivity; Future outlook has strengthened year-on-year, as 75% of hoteliers expect positive business development, up from 69% in 2024, reflecting sustained optimism despite global uncertainties; 70% of accommodations report an increase in occupancy rates and nearly two-thirds (~65%) see growth in average daily rates (ADR).
Investment intent remains resilient, with 48% planning to increase capital expenditure. Tier-3 cities show the most positivity across occupancy, ADR and future outlook. Meanwhile 83% of large hotels (250+ beds) and 78% of chain hotels report positive business development, compared to ~60% of independent accommodations seeing ADR growth.
Event-driven travel is emerging as a powerful driver, with 56% reporting increased bookings during low-demand periods and 41% seeing improved revenue per room. As a result, 49% plan to actively partner with event organisers and 45% with tourism boards and local authorities to sustain this momentum.
For Indian accommodations, hiring momentum continues to be driven by tier-1 cities, as operators scale teams to support growing demand. Indian accommodations plan to hire 9.9 employees on average over the next 12 months; tier-1 cities lead with 10.5 planned hires per property, representing around 40% of total workforce size and reflecting both growth and replacement hiring. Operational roles continue to drive recruitment, as housekeeping, food and beverage and front office emerge as the most frequently hired positions and the easiest to fill.
54% cite lack of necessary skills or experience and 51% pointing to high salary expectations as key barriers; in tier-3 cities, 67% identify skills shortages as their primary hiring concern. To bridge this gap, 41% of accommodations are increasing their training budgets, scaling a combination of in-house development and externally supported learning.
Indian hoteliers are adopting technology as AI adoption remains high in trust and security use cases, with 70% of Indian hoteliers viewing AI as (very) helpful for fraud prevention and cybersecurity, followed by marketing and communications (53%) and customer service (51%). Hoteliers are more optimistic toward AI, with comparatively lower confidence in operational applications such as pricing and revenue management (39%) and housekeeping and maintenance scheduling (35%), reflecting a cautious, ROI-led approach.
On the other hand, 36% cite complexity of system integration, 35% point to high implementation costs, and another 35% highlight unclear ROI as key challenges to adopting new technologies. Digital travel platforms such as Booking.com are seen as central to managing seasonality, with 48% of accommodations collaborating with digital platforms to promote off-season availability, and 79% stating these platforms are effective in securing off-season stays - far outperforming traditional media advertising (26% effectiveness).
Santosh Kumar, Regional Manager, South Asia at Booking.com said, “The third edition of our India Accommodation Barometer reveals that our industry continues to build momentum, marked by resilient demand and steady optimism. From the rise of tier-3 cities to the adoption of AI, India’s accommodations are meeting challenges with proactive innovation. At Booking.com, we’re proud to work alongside accommodation partners across India, supporting their ambition and helping ensure the continued strength and diversity of our nation’s hospitality sector.”
