Why are the world’s largest hotel brands rushing to capitalize on India’s tourism boom? Why are the world’s biggest hotel brands rushing to cash in on India’s tourism boom? – ..

India’s hospitality sector is currently going through its golden phase. Big globally renowned hotel chains are no longer limited to just metro cities, rather they are increasingly moving towards small towns, religious places and untouched tourist destinations of India. The world’s biggest hotel brands like Marriott International, Hilton, Accor and Hyatt are working on a completely new ‘playbook’ i.e. new strategies to expand their foothold in India. Interestingly, these big companies are now changing their old global rules by sensing the pulse of India’s domestic travelers.

Beyond Metro: New destination for luxury in Tier-2 and Tier-3 cities

There was a time when five-star or seven-star hotels meant only metropolitan cities like Delhi, Mumbai, Bengaluru or Kolkata. But now the direction of the wind has changed. The world’s largest hotel chains are now signing their luxury projects in tier-2 and tier-3 cities like Rishikesh, Kumbhalgarh, Indore, Surat, and Igatpuri. Recently, Marriott International has entered into an unprecedented agreement with India’s ‘The Fern Hotels & Resorts’ under the ‘Series by Marriott’, under which more than 75 hotels have been signed and more than 50 are already operational. This expansion is spread across 43 different cities of the country, which proves that now the demand for premium and luxurious experiences has increased rapidly even in small cities.

Rules changed: ‘Global Domestic’ passengers become the new kingmakers

The biggest reason behind foreign brands coming to India so aggressively is the change in the behavior of Indian domestic tourists. Industry experts are calling them ‘Global Domestic Travellers’. These are those Indian travelers who travel within the country but require international level facilities. Along with comfortable rooms, reliable high-speed Wi-Fi, and a luxurious welcome experience, they also want a taste of the local culture and cuisine. This is the reason why a big company like Hilton is now bringing its most premium brand ‘Waldorf Astoria’ in Goa, Jaipur and New Delhi, so that the Indian rich can be given international level luxury in the country itself.

Religious tourism and destination wedding became the biggest booster

In this new playbook of the hospitality sector, the biggest bet is being placed on spiritual tourism and destination weddings. Accor Group is bringing its ‘Sofitel’ brand in Rishikesh, while there are preparations to launch ultra-luxury brands like ‘Raffles’ in Ranthambore and ‘Fairmont’ in Agra. Additionally, Hyatt has signed agreements for ‘Andaz by Hyatt’ in Jaipur and ‘Hyatt Regency’ in Kumbhalgarh. The huge expenditure on Indian weddings and the growing culture of weekend getaways have forced these global brands to abandon their traditional business models and adapt themselves to India’s festivals and culture.

Record breaking agreements: Why did India become the first choice?

If we talk about statistics, according to Marriott International, India has emerged as the fastest growing and largest market for them in the entire Asia-Pacific region except China. Within the past year alone, a record 99 new hotel deals have been signed in India, representing more than 12,000 new rooms. Similarly, Wyndham Hotels & Resorts has also entered into strategic alliances with local brands to establish a strong presence in the Indian market, under which it plans to open more than 60 new hotels in India and the subcontinent in the next decade. Despite the global recession and geopolitical tensions, the strength seen in the Indian economy and tourism sector is attracting investors from all over the world.

The way to the future: Branded residences and an influx of new experiences

This new look of Indian hotels is not going to be limited to just overnight rooms. Now the trend of ‘Branded Residences’ is also increasing rapidly, where people are choosing to live permanently in luxurious homes managed by big hotel brands. The coming of ultra-luxury residences along with Taj Hotel in Delhi-NCR is a living example of this. Along with this, the increasing demand for wellness tourism, eco-tourism and boutique hotels clearly indicates that India’s hospitality market is going to become the most attractive and diverse market in the world in the coming times. Foreign brands have now understood that if they want to rule in India, then the rules will have to be changed according to India.