The Future of Short-Term Rentals in India
Photo Credit: The Cottabetta Bungalow, shown here, was once the home of the director of Tata Coffee, but is now a vacation home in Coorg, India. It's one of the properties now bookable via the new brand Amã, from Taj Hotels. Plantation Trails by Tata Plantation Trails by Tata
Skift Take
Established brands and rising Millennial and Gen Z demand are transforming India's travel landscape through authentic, immersive short-term rentals.
Vacation rentals still represent a relatively small segment in India's hospitality industry. Research we put out last August (India on the Move: A Traveler Survey) showed around 62% of Indian travelers prefer hotels for domestic trips, and only 7% opt for vacation rentals.
But several factors suggest that the short-term rental market has significant potential.
Skift Research’s preliminary analysis indicates that the Indian short-term rental industry is poised to expand into a $3 billion market by 2033. In a previous report, we estimated that it was expected to generate approximately $1.3 billion in revenue in 2022.
Let’s get into the reasons why there's room for more growth.
1. Not Enough Hotels in IndiaOne important factor is the under-supply and under-penetration of hotels in India. According to Bernstein Research, the country faces a substantial shortage of hotel accommodations, with just 2.6 hotels fo
