India's Hospitality: Redefining Luxury Through Local Experiences

In an interaction with Manjunath Vendan, Correspondent, Homes India magazine, Akash Bhatia, CEO, Alivaa Hotels and Resorts, highlights how India’s hospitality sector is redefining luxury and local experience.

With over 20 years of experience in the hospitality industry, Akash has a proven track record of increasing brand presence, improving customer satisfaction, and enhancing operational efficiency.

How do you view the current growth trajectory of India’s hospitality sector, and what key factors are driving this momentum?

India’s hospitality sector is witnessing robust and resilient growth, entering one of its most dynamic phases in recent history, driven primarily by strong domestic demand for travel, leisure and quality accommodation.

A major catalyst is the surge in domestic tourism, propelled by a growing, aspirational middle class with rising disposable incomes, with projections indicating that domestic travel could more than double in the coming years.

Infrastructure development is further enhancing sectoral growth. Significant government and private investments in air, rail, and road connectivity that include new airports, high-speed rail corridors and improved road networks that are making Tier-II and Tier-III cities, as well as previously inaccessible leisure destinations, more reachable. This expanded connectivity is unlocking new markets and widening the geographic footprint of hospitality offerings.

Furthermore, Shifting travel patterns are also influencing the industry. The rise of bleisure trips and workations, alongside remote work trends, is driving demand for longer, flexible stays and leisure-centric properties near business hubs. Experiential travel is gaining prominence, with Gen Z seeking authentic, wellness-focused, and unique local experiences, prompting hotels to evolve into destination-led properties.

Additionally, the revival of corporate travel and the MICE segment is boosting occupancy rates and Average Daily Rates (ADR), particularly in metropolitan and industrial hubs. Collectively, these factors highlight a strong, multifaceted growth trajectory, positioning India’s hospitality sector as one of the most promising in the country’s travel and tourism landscape.

Tier-II and Tier-III cities are emerging as hospitality hotspots. What opportunities and challenges do you see in expanding into these regions?

Tier-II and Tier-III cities are increasingly becoming key growth frontiers for India’s hospitality sector. For Alivaa, expanding into these regions represents a strategic move to capture the rapidly growing domestic travel demand.

Our expansion into Tier-II and Tier-III cities is not an opportunistic move; it is a core competitive defense strategy. We are proactively building a moat around the domestic mid-market traveler.

Additionally, the company’s strategy focuses on securing a first-mover advantage in these emerging hubs. This approach helps Alivaa lock in prime locations, negotiate favorable initial contracts with asset owners, and establish strong brand recall among the rising consumer base in these cities.

While challenges like local-level red tape and quality control exist, we mitigate this through a highly decentralized procurement and operations structure, empowering regional managers. This allows for swift regulatory navigation and ensures that our service standard is consistent, transforming a national footprint into a robust, local network.

Experience-led luxury, hyper-regional travel and homegrown innovation are not just shaping stays; they’re defining the next decade of Indian hospitality.

Technology is reshaping guest experiences, how is tech transforming India’s hospitality landscape?

Technology is rapidly transforming India’s hospitality sector, enhancing both guest experiences and operational efficiency. Hotels are leveraging AI and data analytics to deliver hyper-personalized services, from customized minibar selections and in-room settings to tailored marketing and loyalty rewards. Post-pandemic preferences have accelerated seamless, contactless experiences such as mobile check-in/out, digital kiosks, smartphone room keys, and QR code-driven services.

Furthermore, IoT-enabled smart rooms improve comfort and energy management, while AI and automation optimize back-end operations, including demand forecasting, 24/7 chatbot support, and inventory management. Together, these innovations enable personalized, efficient, and digitally integrated hospitality experiences while boosting operational excellence.

With international brands expanding their presence in India, how are homegrown hotel chains positioning themselves to stay competitive?

As international hotel brands expand their footprint in India, homegrown chains like Alivaa, The Hoften, and Xenious are leveraging their deep local understanding to remain highly competitive, particularly in the mid-market segment.

Our edge against the global giants is our inherent Indian Cultural IP (Intellectual Property) and our organizational flexibility. Global brands operate under the constraint of a world-standard template; we, on the other hand, are free to innovate based on local sentiment.

These homegrown chains differentiate themselves through a focus on customization rather than replication. They offer menus, décor, and service styles that celebrate regional diversity, appealing strongly to domestic travellers. Unlike global brands bound by standardized operating procedures, they can adapt quickly, whether it’s tailoring wedding packages or accommodating last-minute corporate bookings.

Their asset-light approach enables rapid expansion into non-metro locations, supported by a nuanced understanding of local regulatory frameworks and real estate dynamics. Operational and technological systems that are fully Indian-customized further shorten project lifecycles, allowing them to sign, launch, and scale properties faster than international competitors.

The Owner Value Proposition: Our fee structures, contract terms, and compliance requirements are explicitly designed to be owner-friendly and profitable in the Indian context, making us the partner of choice for local asset owners who value a transparent, performance-driven approach.

By optimizing supply chains and leveraging homegrown technology, these chains deliver a strong value equation, offering a branded experience at competitive costs. The Value Equation: We are masterful at offering a branded experience at a competitive cost structure. By optimizing our supply chain and utilizing homegrown tech, we deliver superior value for money, which resonates powerfully with the Indian consumer base.

In total, this combination of cultural relevance, operational agility, and cost-efficient value delivery allows Indian hotel chains to effectively compete with global players while deepening their connection with domestic travellers.

Also Read: Alivaa Hotels Adds The Hoften Lotus Court in Noida

Looking ahead, what trends will define the next decade of Indian hospitality, and where do you see the biggest opportunities for investors and entrepreneurs?

Over the next decade, India’s hospitality sector is set to be shaped by five key trends, creating significant opportunities for investors and entrepreneurs. Experience-led luxury will dominate, with travellers seeking authentic, immersive stays that integrate local culture, wellness practices like Ayurveda and yoga, mental health initiatives, and sustainable operations. Sustainability will become a non-negotiable expectation, emphasizing energy efficiency, waste management, water conservation, and local sourcing.

Alternative accommodations such as villas, serviced apartments, and branded residences, will grow rapidly, catering to longer stays, family travel, and leisure segments. Improved road and air infrastructure will create hyper-regional travel corridors, enabling weekend getaways, spiritual circuits, and pilgrimage loops near metros. Advancements in AI, machine learning, and biometrics will enhance personalization and streamline service delivery.  Additionally, opportunities lie in mid-to-upscale hotels in Tier-II/III cities, themed experiential resorts, India-specific hospitality technology solutions, and talent development, all driving innovation, regional expansion, and elevated guest experiences across the sector.