India’s branded alternate vacation market has reached a valuation of USD 483.7 million in 2024, according to a new study by Axon Developers in collaboration with SKYE, a hospitality and tourism consulting firm. The segment has jumped by 46.8% from 2023, when it stood at USD 329.6 million—marking one of the fastest-growing trends in the Indian tourism landscape.

The sharp rise comes at a time when travellers are increasingly choosing immersive and authentic holiday experiences over traditional hotel stays. Instead of standardised rooms and conventional itineraries, many prefer personalized getaways that reflect local culture, food, and natural surroundings—a demand being met by the burgeoning short rental and villa market.

In 2024 alone, India added over 550 new branded rental villas, taking the total count to 1,711. Over the next five years, that number is projected to cross 5,000, with the overall market value forecasted to hit USD 1,560.7 million by 2029, growing at a CAGR of 26.4%.

Sharing insights on this evolving trend, Ankit Kansal, MD of Axon Developers, stated:

“The nature of tourism is transforming. People are no longer satisfied with just ticking landmarks off their lists. With urban fatigue and hectic lifestyles, today’s travellers are seeking authentic, nature-centric experiences. That’s where private villas and farmhouses with bespoke services come into play—offering a level of customization that mainstream hotels simply cannot match.”

Another key trend fuelling the surge is the growing interest in offbeat travel trails, especially as mainstream destinations become overcrowded. Areas such as the Konkan coast, Himalayan valleys, Nilgiris, and Sahyadris are attracting travellers looking for serene, less-explored escapes. In many such regions, traditional hotels are scarce, and vacation villas, bungalows, and farmhouses are stepping in to meet the demand.

The vacation rental space has also caught the attention of hospitality giants. IHCL’s Ama Stays & Trails crossed 250 private properties as of January 2025, while ITC’s Storii brand is actively expanding into states like Uttar Pradesh, Himachal Pradesh, and Goa.

“This indeed is a watershed moment for India’s alternate hospitality segment,” said Ms. Taran Chabra, Director of SKYE Hospitality.

The ripple effects of this growth will extend beyond tourism. According to Kansal,

“Sectors like real estate, aviation, and F&B are bound to benefit. Notably, the demand for second homes and vacation properties will see an uptick. While weekday occupancy for villas averages around 30–40%, weekend occupancy often peaks at 80–100%, pushing average occupancy to ~50%. This makes it a lucrative leasing option for second home owners.”

With branded villas becoming mainstream, and major players doubling down on this segment, India’s alternate vacation market is clearly poised for a new era of growth—one that is personalized, sustainable, and driven by experience over excess.