Booking.com’s India Accommodation Barometer Reveals How Indian Hoteliers Are Future-Proofing Growth

One of the world’s leading online travel platforms 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.

Industry Optimism
- 75% of hoteliers expect positive business growth in 2026 (up from 69% in 2024).
- Tier-3 cities are emerging as growth engines, leading in occupancy, ADR (Average Daily Rate), and outlook.
- Large hotels (83%) and chain hotels (78%) show stronger confidence compared to independents (~60%).

Growth Drivers
- Occupancy & ADR: 70% report higher occupancy, ~65% see ADR growth.
- Investments: 48% plan to increase capital expenditure.
- Event-driven travel: 56% report increased bookings during low-demand periods; 49% plan partnerships with event organizers and 45% with tourism boards.

Talent & Skills
- Hiring momentum strongest in Tier-1 cities, averaging 10.5 hires per property.
- Operational roles (housekeeping, F&B, front office) are easiest to fill.
- Skill shortages remain a challenge, especially in Tier-3 cities (67% cite this).
- 41% of accommodations are increasing training budgets to upskill staff.

Technology & AI
- AI adoption: - 70% see AI as helpful for fraud prevention & cybersecurity.
- 53% for marketing/communications, 51% for customer service.
- Lower confidence in operational AI (pricing/revenue management at 39%, housekeeping scheduling at 35%).
- Challenges: High costs (35%), unclear ROI (35%), and system integration complexity (36%).
- Digital platforms: 79% say Booking.com helps secure off-season stays, far outperforming traditional advertising (26%).

Quote
Santosh Kumar, Regional Manager, South Asia at Booking.com:
> “From the rise of tier-3 cities to the adoption of AI, India’s accommodations are meeting challenges with proactive innovation.”

This report paints a picture of resilient demand, tech-driven efficiency, and workforce upskilling, with Tier-3 cities becoming the new frontier for hospitality growth.