India's luxury hospitality sector is witnessing a strong summer travel season, with leading hotel operators reporting higher occupancies and booking volumes as affluent travellers increasingly choose domestic destinations over overseas holidays. Industry executives said geopolitical uncertainty in parts of West Asia, airline disruptions and elevated travel costs have encouraged many consumers to explore premium travel experiences within the country.
Luxury hotel chains including ITC Hotels, Radisson Hotel Group and The Leela have recorded robust demand across their leisure portfolios during the current summer season. While international travel continues to remain an aspiration among high-net-worth travellers, domestic destinations are benefiting from changing travel patterns and a growing preference for convenience and predictability.
According to Anuraag Bhatnagar, Chief Executive Officer of The Leela Palaces, Hotels and Resorts, affluent Indian travellers continue to show long-term interest in overseas travel. However, near-term geopolitical developments, disruptions to travel schedules and higher costs have encouraged many consumers to increasingly consider luxury domestic alternatives.
ITC Hotels has also reported stronger booking trends across several leisure destinations compared with the corresponding period last year. Managing Director Anil Chadha stated that the company's leisure portfolio was performing well during the summer season, with demand exceeding year-ago levels in multiple markets. He noted that recent geopolitical developments had prompted some travellers to review international holiday plans and consider destinations within India.
Radisson Hotel Group reported measurable gains from the domestic travel segment. Nikhil Sharma, Managing Director and Chief Operating Officer, South Asia, said overall occupancy across the group's India portfolio had increased by 5 per cent year-on-year. Leisure destinations have emerged as significant growth drivers, with average occupancies approaching 75 per cent and weekend demand remaining particularly strong.
The company said the strongest growth has come from destinations offering cooler climates, cultural experiences and spiritual tourism. Radisson's hill station properties recorded a 69 per cent increase over last year, while spiritual destinations registered 41 per cent growth. Sharma attributed the trend to travellers seeking experience-led holidays combining relaxation, wellness, culture and meaningful engagement with destinations.
Among the strongest-performing locations in Radisson's network are Jammu & Kashmir, Manali, Mussoorie, Udaipur and Ayodhya. Beach destinations including Goa and coastal resorts across South India have also maintained healthy demand levels.
Hotel operators are also observing a broader shift towards experiential tourism. ITC Hotels said travellers are increasingly choosing heritage-inspired accommodation, wellness retreats and nature-focused stays while showing greater interest in experiences centred on gastronomy, wellbeing and destination storytelling. Similar trends have been observed by The Leela, where experiential luxury resorts, heritage properties, wellness destinations and nature-based escapes have attracted strong demand.
The growing appeal of emerging destinations is another notable trend. ITC Hotels reported rising demand from Tier-2 and Tier-3 cities, particularly Prayagraj, Katra, Amritsar and Bhubaneswar, driven by increasing interest in spiritual tourism and cultural exploration. Radisson's data similarly highlighted the rising importance of faith-based travel across the country.
Standalone luxury properties are witnessing comparable trends. Avni Tripathi, Chief Marketing Officer of Aahana Resort & Spa, said domestic summer travel had increased significantly, with travellers increasingly favouring wildlife destinations, wellness retreats, spiritual circuits and experiential luxury offerings. Hari Sukumar, General Manager of Jaypee Palace Hotel & Convention Centre, Agra, reported an approximately 8 per cent year-on-year increase in occupancy levels and noted that affluent travellers were increasingly recognising India itself as a luxury travel destination.
Source - PTI