An increasing number of young, budget-conscious travelers are driving demand for hostel accommodations in India over the last few years, according to Pranav Dangi, founder and CEO of backpacker hostel chain The Hosteller.
The backpacking culture in India is also contributing to this trend. The Hosteller CEO notes that the company has also recorded a surge in Gen Z and millennial travelers looking for immersive experiences over more traditional hotel stays.
To capture this growing market, experiential hotel chain Leisure Hotels Group has also launched a brand called Bedzzz that offers exclusive rooms as well as dormitories for solo travelers. It has also launched an extension of the Bedzzz brand Bedzzz Xclusive: a social hotel concept.
“Hostels provide affordable accommodation as well as a sense of community and shared experiences, which resonates with today’s independent, adventure-seeking travelers,” said Dangi.
The preference for hostels is increasing in urban as well as offbeat destinations, he shared. Solo travelers, digital nomads, and small groups of friends are the biggest takers. “This aligns with a broader global trend where hostels cater to lifestyle choices rather than just budget needs,” he added.
Another significant change is how domestic travelers now form the majority of hostel travelers. Earlier, international backpackers, particularly those from Europe, Australia and North America, were key drivers of hostel occupancy, Dangi explained.
“The growing middle class, improved transportation infrastructure, and increased access to remote work opportunities are all contributing to the sustained growth of domestic hostel demand,” Dangi said.
Oyo Completes Motel 6 Acquisition. What’s Next?
Oravel Stays, the parent company of Indian hospitality company Oyo, on Tuesday completed its $525 million acquisition of G6 Hospitality from private equity firm Blackstone Real Estate, Skift Asia Editor Peden Doma Bhutia has reported. This deal brings the Motel 6 and Studio 6 brands, synonymous with affordable lodging, into Oyo’s fold, furthering its plans to strengthen its foothold in the U.S. hospitality market.
Now, Oyo aims to add over 150 new properties under Motel 6 and Studio 6 by 2025. The hospitality company said it would target key markets with a focus on property upgrades and tech-driven growth.
It is also looking to develop a broader network of distribution partners beyond traditional online travel agencies as well as strengthening direct booking channels and corporate booking demand. Oyo has said it will develop advanced digital solutions, including dynamic pricing tools and improved mobile and web booking platforms.
Vacation exchange service RCI has affiliated with Rashi Eco Tourism in Karnataka. With this partnership, RCI members will have access to three of Rashi Eco Tourism’s resorts across Karnataka: Guhantara in Bangalore, Jhari Eco Stay in Chikkamagaluru, and Shilhaandara in Ramanagara.
In a statement, RCI said that the partnership will allow its members more unique and eco-friendly experiences. Rashi Eco Tourism resorts offer varied experiences, including underground cave-like rooms, private waterfalls, and ziplines.
Antara Cruises Launches New River Cruise in Sundarbans
River cruising company Antara Cruises has launched a new cruise voyage in the Sundarbans — a UNESCO World Heritage Site and the largest delta mangrove forest in the world. The cruises are set to commence in March next year.
The company is offering two packages — a 4-night journey and a 6-night voyage. Antara first introduced operations in 2009 and till March 2024, it has hosted about 20,000 passengers. Around 90% of its patrons are international travelers, Skift had earlier reported. The scope for river cruising in India is immense, according to Raj Singh, chairman of Heritage River Journeys, which operates Antara River Cruises. However, Indian tourists are not aware of this activity.
How Indians Are Traveling This Holiday Season
Three online travel platforms — MakeMyTrip, Agoda, and Booking.com — released separate reports Tuesday on how Indians are gearing up for the year-end holidays. Domestic travel continues to be the backbone of Indian tourism, with destinations like Goa, Manali, and Udaipur seeing a surge in demand. Booking.com noted a 40–100% increase in searches for domestic trips compared to last year. MakeMyTrip’s data corroborates this trend, highlighting that 40% of the top 20 domestic searches are hill destinations.
At the same time, international travel is also on the rise. “The rise in outbound travel reflects the growing aspirations of Indian travelers,” said Krishna Rathi, senior country director at Agoda.
Agoda reported a 53% jump in international accommodation searches compared to last year, with Phuket emerging as the most popular destination, replacing Bangkok. Booking.com highlighted surges in searches for culturally rich destinations like Baku and Lapland, up more than 120%. Searches for Tbilisi were up 60%.
A clear trend across all three platforms is the move toward premium travel. MakeMyTrip reported an 80% increase in business-class bookings for international flights and a 27% rise for domestic. Similarly, hotel bookings priced above INR 10,000 surged, making up 57% of overall bookings, compared to 51% last year.
Leisure Hotels Group Launches Business Hotel in Dehradun
Leisure Hotels Group has launched a boutique business hotel in Dehradun: Auradoon. The 54-key hotel is the group’s 18th property in Uttarakhand. The hotel aims to cater to the Meetings, Incentives, Conferences, and Exhibitions (MICE) segment, as well as small events.
The hotel group’s director Vibhas Prasad said that Dehradun has emerged as a key destination for leisure and business, thanks to its improved connectivity, including the upcoming Delhi-Dehradun Expressway.
