India Online Accommodation Market, By Region, Competition, Forecast & Opportunities, 2020-2030F

The India Online Accommodation Market was valued at USD 8.24 Billion in 2024, and is expected to reach USD 14.58 Billion by 2030, rising at a CAGR of 10.04%. This market is expanding rapidly due to increased internet access, smartphone adoption, and a rising middle class. Online Travel Agencies (OTAs) and aggregators have revolutionized the way accommodations are discovered and booked, enhancing visibility for hospitality providers and convenience for travelers. India’s appeal as a culturally rich and diverse travel destination - boosted by religious, historical, and wellness tourism - continues to draw both domestic and international visitors. The government’s focus on enhancing tourism infrastructure through initiatives like developing key tourist hubs, MUDRA loans for homestays, improved connectivity, and e-visa expansion is expected to further catalyze online accommodation growth across the country.

Key Market Drivers

Increase in Smartphone Penetration and Internet Accessibility

A key driver of the India online accommodation market is the widespread penetration of smartphones and affordable internet access. With over 600 million smartphone users and expanding 4G and 5G networks, more people - especially in semi-urban and rural regions - can access digital booking platforms. The availability of budget-friendly data plans and the convenience offered by mobile apps and user-friendly websites have enabled users to browse, compare, and reserve accommodations instantly. This digital transformation has opened new avenues for platforms like OYO, MakeMyTrip, and Booking.com to serve a broader and more diverse customer base. Tailored content, regional language interfaces, and secure payment options have further enhanced consumer confidence and fueled adoption, particularly among younger travelers and those new to digital transactions.

Key Market Challenges

Price Sensitivity and Unpredictable Consumer Behavior

The India online accommodation market faces the challenge of a highly price-sensitive consumer base. Many travelers prioritize cost savings over brand loyalty, often switching between platforms in search of the best deal or discount. This leads to inconsistent demand and increased reliance on promotional offers, which compresses margins for both OTAs and hospitality providers.

The unpredictability in booking behavior - such as last-minute reservations, cancellations, or changes in travel plans - makes revenue management and demand forecasting difficult. Additionally, while this benefits budget-centric providers, it limits the growth potential of mid-tier and premium accommodations trying to establish steady occupancy and brand loyalty. To navigate this landscape, platforms must strike a balance between competitive pricing and profitability while building customer retention strategies.

Key Market Trends

Shift Towards Budget and Alternative Accommodation Options

A notable trend reshaping the market is the growing consumer shift toward budget-friendly and non-traditional accommodations such as homestays, hostels, and vacation rentals. OTAs like OYO, Airbnb, and MakeMyTrip are expanding their listings to include these alternatives, appealing to travelers who value affordability and immersive local experiences. Younger generations, in particular, seek out accommodations that offer cultural authenticity, comfort, and personalization over conventional hotel stays. The demand for these formats has also been fueled by post-pandemic domestic travel, as consumers seek short getaways and cost-effective lodging options. This trend is expected to gain momentum as both hosts and travelers embrace flexible, digitally managed stays that align with value-driven travel behaviors.

Key Market Players

MakeMyTrip.com
Booking.com
IRCTC
EaseMyTrip.com
Goibibo
OYO Rooms
Trivago
Cleartrip
Agoda
EaseMyTrip

Report Scope:

In this report, the India Online Accommodation Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

India Online Accommodation Market, By Platform:

Mobile Application
Website

India Online Accommodation Market, By Mode of Booking:

Third Party Online Portals
Direct/Captive Portals