The world’s largest hotel brands are expanding their footprint in India but this time, the rules of the game are entirely new. The world’s biggest hotel brands are expanding their footprint in India, but this time the rules of the game are completely new. – ..

India’s hospitality (hotel and tourism) sector is currently going through an unprecedented transformation. The world’s largest and leading global hotel chains like Marriott International, Hilton, Accor and Hyatt are expanding their expansion in India very aggressively. But the most interesting thing is that these international giants have now changed their old and traditional ways of doing business in India. They are now playing under ‘new rules’, reflecting the changing mindset of Indian travelers and the new story of the country’s economic growth.

Disillusioned with metros, now eyes fixed on Tier-2 and Tier-3 cities

Till now, whenever the name of big international hotels came to mind, metropolitan cities like Delhi, Mumbai, Bengaluru or Kolkata came to mind. But now the game has completely changed. The biggest rule of the new strategy of global brands is – ‘Go beyond elite cities’. Now these brands are signing their new hotels in tier-2 and tier-3 cities of India like Siliguri, Gorakhpur, Rishikesh, Indore and Rewa. There has been a huge surge in demand for mid-scale (medium budget) and premium hotels in these emerging cities, which foreign companies are desperate to capitalize on.

Domestic tourism and religious tourism became the biggest game-changer.

The biggest reason behind foreign hotels coming to India and changing their strategy is India’s strong domestic tourism. Now hotels are not just dependent on foreign guests, but Indians themselves are now spending lavishly on weekend getaways, road trips and destination weddings. Along with this, the development of infrastructure in religious and spiritual centers like Ayodhya, Varanasi, Puri and Tirupati has forced these big brands to change their policies. Now they are opening hotels with international level comforts in these holy cities.

Unprecedented growth in luxury segment, entry of new and unique brands

Given the increasing number of millionaires and high income groups in India, a huge gap (Supply Shortage) has arisen between the demand and supply of luxury hotels. To meet this demand, Hilton has signed its most premium and ultra-luxury brand ‘Waldorf Astoria’ in India for select locations like Jaipur and Goa, while ‘LXR Hotels & Resorts’ is going to debut in Bengaluru. Similarly, Accor Group is preparing to bring its prestigious ‘Sofitel Legend’ to Rajasthan.

Not just a room, now the emphasis is on selling ‘experience’

The new age Indian traveler is no longer satisfied with just a clean room and a good bed. He wants a unique experience (Experiential Travel). This is why global brands are now introducing ’boutique’ and ‘lifestyle’ brands in India. A glimpse of local culture, food and art can be clearly seen in these. Apart from this, the economics of hotel business has also changed. Due to skyrocketing land prices in metros, companies are now working on an asset-light model, where they partner with local developers and use only their brand name and management. This new hospitality boom of India is going to completely change the definition of tourism in the country in the coming days.