Budget Hotels to Be the Fastest Growing Segment in the Hotel Industry in India

30 Nov 2011 • by Natalie Aster

Mumbai, India – The hotel industry in India thrives largely due to the growth in tourism and travel. Due to the increase in tourism with rising foreign and domestic tourists, hotel sector is bound to grow as it will provide lodging and food to these tourists. Emergence of budget hotels in India to cater to the majority of the population who seek affordable stay has materialized into an effective driver for growth. This sector will benefit due to certain Government regulations that will steer this sector towards growth.

Netscribes (India) Pvt. Ltd., a knowledge consulting solutions company, announces the launch of the report “Hotel Industry in India 2011”. The market is expected to witness strong growth due to the developing tourism sector as well as the rise in low cost carriers leading to an upsurge of tourists. Players are looking to focus on the economy segment to tap the emerging class of people who look for affordable stay. The gap in demand-supply is a strong driver for the market and has led to major domestic and foreign participation. Government initiatives in form of campaigns of ‘Incredible India’ and tax exemption will lead to further growth.

Report Details:

Hotel Industry in India 2011
Published: November 2011
Pages: 51
Price: US$ 475.00

Market Overview:

  • Hotel industry has been growing steadily and is expected to grow with the development of the Indian economy.
  • Hotels in India offer a wide range of options including luxury, upscale, leisure and mid?market or economy.
  • India has become a global destination with many international brands making a foray into the country as part of their expansion plans.
  • Major international events will lead to a dynamically growing hotel industry.
  • Rising occupancy rate reflects the strong demand existing in this market.


  • Growth in tourism;
  • Opening of aviation sector;
  • Emergence of budget hotels;
  • Shortage of hotel rooms;
  • Major events.


  • Socio-political concerns;
  • Lack of infrastructure;
  • Increasing operating costs.

Market Size and Growth

Hotel Rooms in India (Mar 2010)


  • Entry of foreign players;
  • Franchising model of operation;
  • Female guests draw special services.

Key Regulations:

  • Government participation;
  • Tourism enhancement initiatives;
  • Hospitality development and promotion board;
  • Taxation system.

More information can be found in the report “Hotel Industry in India 2011” by Netscribes (India) Pvt. Ltd.

To order the report or ask for sample pages contact ps@marketpublishers.com


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