Hospitality operators in India are adapting their financial strategies to match rising demand for eco-friendly practices, wellness experiences, and mobile-first bookings.Indian hospitality is experiencing growth driven by changing consumer behavior, with domestic travel, premium stays, and short leisure getaways shaping revenue and financial strategies, according to Nikhil Sharma, Managing Director & COO, South Asia, Radisson Hotel Group (RHG).

Domestic tourism remains the backbone of the sector, with domestic air passenger traffic reaching 152 million in 2024 -- nearly 20% above pre-pandemic levels -- while international visitor spending hit a record ₹3.1 trillion, the World Travel & Tourism Council reports.

Short leisure breaks and drive-to destinations, including Karjat, Lonavala, Shimla, Mussoorie, and Saputara, now account for a growing share of weekend occupancy.

"This surge in domestic and short-stay travel is prompting hospitality operators to adjust pricing, revenue strategies, and expansion plans," Sharma said, noting that RHG is introducing flexible packages, experiential F&B offerings, and last-minute booking options to meet evolving traveler needs.

Indian consumers are also showing a clear preference for premium stays and curated experiences over budget options.

Comfort, wellness programs, fine dining, and cultural immersion are driving demand, prompting RHG to expand its high-end portfolio.

The Radisson Collection Hotel & Spa, Riverfront Srinagar, opened in April 2024, with additional properties planned in Jaipur and Udaipur.

On the investment front, hotel operators are adopting an asset-light model, partnering with high-net-worth individuals, real estate developers, institutional investors, and hotel groups.

Primary business and gateway cities such as Mumbai, Delhi NCR, Bengaluru, and Hyderabad account for nearly 40% of branded room demand, while leisure destinations like Goa, Jaipur, Udaipur, and micro-markets in Himachal Pradesh and Kerala are witnessing double-digit growth in supply pipelines.

Secondary cities and satellite towns now make up over 30% of RHG's expansion plans.

Evolving consumer preferences are also directly influencing financial models. Sustainability initiatives, wellness tourism, and digital-first bookings are shaping revenue streams and operational planning.

"Eco-friendly operations, wellness tourism, and mobile-driven bookings not only attract premium guests but also optimise long-term operational efficiency," Sharma said.

Industry data shows wellness tourism in India is expected to grow at over 20% CAGR through 2030.

Digital channels now account for more than 70% of RHG's direct bookings, enabling dynamic pricing, targeted upselling, and personalised offers -- all of which are being integrated into financial planning and revenue strategies.

Evolving consumer trends reshape hospitality financial models, says Radisson Hotel Group - CNBC TV18