Mumbai, Jan 19 (PTI) A significant percentage of hoteliers expect positive business growth in the coming months, reflecting sustained optimism amid global uncertainties, largely driven by rising demand
from tier III markets, fresh investments and events-led travel, Booking.com said in a report on Monday.
Booking.com’s third edition of the annual India Accommodation Barometer, in partnership with Statista, revealed that 75 per cent of hoteliers expect positive business development, up from 69 per cent in 2024.
“Our industry continues to build momentum, marked by resilient demand and steady optimism. From the rise of tier III cities to the adoption of AI, India’s accommodations are meeting challenges with proactive innovation,” Booking.com Regional Manager, South Asia, Santosh Kumar said.
According to the report, Tier III cities show the most positivity across occupancy, ADR (Average Daily Rate) and future outlook.
Further, it revealed that event-driven travel is emerging as a powerful driver, with 56 per cent reporting increased bookings during low-demand periods and 41 per cent seeing improved revenue per room.
As a result, 49 per cent plan to actively partner with event organisers and 45 per cent with tourism boards and local authorities to sustain this momentum, said the report, adding that investment intent remains resilient, with 48 per cent planning to increase capital expenditure.
The report is based on a survey conducted by Statista among 285 executives and managers from the Indian travel accommodation sector from July 7 to September 1, 2025.
The report revealed that hoteliers are more optimistic toward AI, with comparatively lower confidence in operational applications such as pricing and revenue management (39 per cent) and housekeeping and maintenance scheduling (35 per cent), reflecting a cautious, ROI-led (Return on Investment) approach.
On the other hand, 36 per cent cite complexity of system integration, 35 per cent point to high implementation costs, and another 35 per cent highlight unclear ROI as key challenges to adopting new technologies, it said.
The report further noted that for Indian accommodations, hiring momentum continues to be driven by tier I cities, as operators scale teams to support growing demand.
While operational roles are easier to fill, persistent skill gaps and salary pressures are sharpening the focus on upskilling, with hoteliers increasing investment in training to build a more future-ready workforce, it stated.
In tier III cities, 67 per cent identify skills shortages as their primary hiring concern, the report said.
To bridge this gap, 41 per cent of accommodations are increasing their training budgets, scaling a combination of in-house development and externally supported learning, it added. PTI SM DRR
