Luxury is no longer limited to high-end wealthy people and businessmen; it has become easily accessible to well-to-do professionals eager to spend on the premium things in life, whether it be dining, housing, stays or travel.
More people are gravitating towards pricier rooms and unique experiences, regardless of higher rates. Last year's festive season saw a big surge in hotel room rents, surpassing six figures, making bookings difficult. Luxury hotels like The Leela Palace Udaipur and Six Senses Fort Barwara charged over Rs 1,00,000 per room per night during Christmas and still reached full occupancy.
Modern travelers are increasingly opting for luxurious suites and verdant rooms, marking a shift in the Indian hospitality sector where indulgence is now the norm. Data from MakeMyTrip highlights this change, with bookings for super-luxury and premium hotels nearly 150 per cent higher than pre-pandemic levels. This trend shows a growing desire for elite travel experiences among Indian travellers, with luxury stays seeing a 90 per cent increase in demand after the first pandemic wave and a 40 percent increase after the second wave.
“We have seen an approximately 15 per cent increase in guests opting for premium rooms rather than standard rooms. About 24 to 25 per cent of guests opt for premium rooms,” said Kush Kapoor, CEO of Roseate Hotels & Resorts.
He further added that generation-Z and millennials are driving the demand for premium experiences in the hospitality industry. This demographic group, which includes young, affluent professionals, is fueling the economy with their inclination towards regular travel, staycations and weekend getaways, and are, therefore, the ones who prioritise experiential, personalised, and holistic ‘premium’ experiences over the standard, traditional experiences.
“Guests are looking for memorable stays - tangible and intangible values that go beyond just a place to sleep, especially when staying or holidaying in a bustling city like Jaipur, or even a serene national park like Bandhavgarh. Additionally, the trend of conscious consumerism is playing a significant role. From our experience at Samode Haveli and Samode Safari Lodge, we have seen guests are willing to pay more for experiences and stays that align with their values, such as exclusivity, enhanced knowledge about the destination and even sustainability, ethical practices, and supporting local communities,” Yugdeep Singh Rathore, General Manager, Samode Hotels feels.
One key demographic we have noticed showing keen interest in premium experiences at Samode Hotels is the experiential domestic traveller. These often well-travelled travellers are more drawn to properties like Samode Haveli in Jaipur and Samode Safari Lodge in Bandhavgarh, which tend to provide guests with a cocoon of serenity, comfort, and outstanding hospitality.
India's hospitality industry is evolving as middle-class families increasingly opt for experiential stays over traditional lodging. This shift underscores a preference for distinctive and memorable accommodations, with travellers choosing to invest more in their stay experiences rather than usual tourist activities. “In today’s time, customers are more demanding and are not ready to compromise. The overall mindset has changed irrespective of the type of traveller. From a budget to a luxury traveller, everyone now needs customisation and experience when it comes to travel. And for that, people are now ready to spend some penny more,” said Sarbendra Sarkar, Managing Director, Cygnett Hotels & Resorts.
In response to this evolution, major hotel brands like Taj and IHCL are shifting their focus by introducing luxury boutique options tailored to experiential travel. This strategic adjustment emphasises the changing dynamics in travel, where the quality of accommodations plays a crucial role in enhancing the overall destination experience.
“Enthusiasts with keen interests in wildlife and photography, as well as multigenerational families seeking to better understand India's rich landscape, are choosing our lodge. While their primary focus is on wildlife exploration, these travellers demand high standards in accommodation, the quality of jeeps, and the expertise of naturalists. They expect an immersive jungle experience without compromising on luxury and are conscious of sustainable practices and initiatives that align with their values, Rathore further added.
In the search for premiumisation, trends forecast that travellers are ready to move ahead of a regular brick and mortar structure and explore the unconventional, like Glass Houses, Tree Houses resorts or the newly discussed term “Glamping”. Bhavik Sheth, COO, Evoke Experiences, commented that travellers now want to explore beyond the ordinary. “From experiencing the local culture at Rann of Kutch at our Tent City or staying at Statue Of Unity Tent City near the valley of Narmada, to exploring nature at its best at the Kuno Forest Retreat, travellers are now embracing these structures of experiential living, and we have seen an uptick in numbers,” he stated.
The overall new emerging sentiment has fueled a demand for unique, once-in-a-lifetime travel experiences and has prompted hoteliers to rethink their offerings and explore new ways to cater to this emerging trend.
