Alternative Accommodation is no Longer Just an ‘Alternative’: Booking.com Research

Booking.com, in partnership with VIDEC Consultants, launched the fourth edition of its flagship report: "How India Travels™ 2026 – The Homes Edit." The report highlights the rapid growth of alternative accommodation in India.

Market Growth & Forecast
- Alternative accommodation segment is projected to reach ₹415 billion Gross Booking Value (GBV) by FY29.
- Part of India's broader ₹8,200 billion travel market.
- Expected to grow at a 21.2% CAGR through FY29, outpacing the overall travel industry.

Alternative Accommodation Goes Mainstream
- Digitally distributed listings increased from 102,200 in FY23 to 215,000 in FY26.
- Alternative accommodation now accounts for approximately 13% of lodging GBV.
- Online searches for alternative stays grew 6%, compared to 2% growth for hotels.

Emerging Destinations Driving Growth
- Growth expanding beyond traditional beach and hill destinations.
- Inventory is rapidly increasing in emerging markets such as: Greater Noida, Ghaziabad, Indore, Ayodhya
- Alternative stays are helping address India's estimated shortage of 200,000+ hotel rooms.

Changing Traveller Preferences
Travellers increasingly see accommodation as part of the overall experience:
- 87% say alternative stays create more meaningful memories.
- 85% choose them for authentic local experiences.
- 83% prefer them for family and group travel.
- 83% believe they offer good value for money.
- 83% consider them a more sustainable option.

Business Travel Emerging as a Key Segment
- Business travellers accounted for 19% of alternative accommodation bookings in FY26.
- Share expected to rise to 21% by FY27.
- Key reasons for choosing alternative stays:
- More space and dedicated work areas (41%)
- Accommodation for family or colleagues (40%)
- Localized experiences (39%)
- Better value for longer stays (37%)

Technology & Professionalisation
- Properties using dynamic pricing achieved 108% to 190% higher RevPAR than those with fixed pricing.
- Goa recorded the highest performance gap at 190%.
- The sector is becoming increasingly organized, with professional operators and technology-driven management practices.

Government Support
- Ministry of Tourism highlighted initiatives supporting homestay owners through: Access to finance Mudra loans JanSamarth portal guidance
- Government continues to improve: Connectivity Tourism infrastructure Entrepreneur support Quality standards

Industry Perspectives
- Santosh Kumar, Regional Head South Asia, Booking.com, said alternative accommodation has become a core driver of India's travel economy and tourism growth in non-metro markets.
- Virendra Jain, Co-Founder & CEO, VIDEC Consultants, highlighted the sector's transition from a fragmented market to a more mature and organized ecosystem.

Future Outlook
- Growth will be supported by national initiatives like: MUDRA UDAN PM Gati Shakti Swadesh Darshan 2.0 PRASHAD
- Online travel payments are growing 20%-35% year-on-year.
- Flexible payment options (BNPL and EMI) have increased their share of travel transactions from 6% to 15% over the last 18 months.

Key Takeaway
Alternative accommodation is no longer a niche segment in India. Driven by changing traveller preferences, technological adoption, business travel demand, and supportive government policies, it is becoming a major contributor to the country's future tourism and hospitality growth.