Mid-scale and budget hotels to account for over 50% of branded hotel rooms

According to a report titled ‘Demystifying the Indian Online Traveller’ commissioned by BCG and Google, the Indian hospitality space is expected to accelerate to $13bn worth of gross bookings in 2020, $10bn of which constitutes hotel bookings and the remaining is constituted by bookings of short-term rentals and other lodgings. Players in these alternate spaces have the potential to innovate as travellers, both domestic and foreign, become more open to alternate stay options. In 2020, budget and luxury hotels are expected to be areas of growth. The former is expected to grow at 13.5 per cent driven by the growth of the Aspirers segment on the demand front and the consolidation, standardisation and branding of currently upbranded properties through aggregator-based start-ups on the supply front. Mid-scale hotels or the two-and three-star properties will continue to maintain their dominance.