Noesis, a hotel investment advisory firm, has presented a ‘Home away from Home’ report highlighting 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, which is projected to grow at 11% to 11.5%, reached around a whopping $48 billion 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. It also outlines their business model, the requirement and the checklist to start a homestay or luxury and boutique rental.
This concept will help hospitality brands diversify to expand their portfolios and support the local population to monetise their unused assets. This will also help fill in the demand and supply gap and help brands reach remote areas where development is slow. According to the report, the homestay segment is a sustainable development method as it will provide a source of income to many in the surrounding areas.
According to Airbnb India data, travellers explore new experiences when they travel. The flexible destinations featured on the Airbnb platform is also helping travellers explore and spotlight exciting places near and far. In addition, their data show a rising interest in unique accommodations.
“Development of the organised luxury rental sector in India is pivotal for the economy’s growth, especially in the underdeveloped and rural areas. This is an untapped industry with major potential, and the early adopters 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% between 2021 and 2027, reaching $1,198.3 billion in 2027. Luxury travel services provide the most desired and premium experience in plentiful lodgings, accessible 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, significantly contributing to global economic growth and development.
