As large groups of tourists flock to well-known spots like Goa, Jaipur, and Shimla, travel operators are eager to explore untouched areas of the country. From dolphin watching near a small island in the Arabian Sea to discovering hidden waterfalls in the Himalayan foothills, the emphasis is on attracting high-spending travelers in search of fresh and authentic experiences.
The Indian Hotels Co., which owns the Taj brand, has been particularly proactive. Recently, it secured a majority stake in Sparsh Infratech Pvt., the operator of the wellness retreat Atmantan, located in the Western Ghats—a UNESCO world heritage site celebrated for its lush tropical forests and numerous vulnerable or endangered species. A three-night stay here starts at approximately $1,260.
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In August, it formed a partnership with boutique chain Brij, renowned for its properties in unique locations such as Jawai, a leopard-rich area in western India.
“Wellness-centric experiences will be a key growth driver for the sector,” stated Managing Director Puneet Chhatwal in a Bloomberg News interview, positioning the company to spearhead what he describes as “the future of experiential travel.”
Outlying locations
Others are adapting to stay competitive. Leela Palaces Hotels and Resorts Ltd. and boutique firms like Untitled Hotels & Resorts Pvt., which manages The Postcard Hotel, are expanding into remote areas.
Analysts believe this segment may surpass the wider leisure travel market. Luxury accommodations in new or lesser-known areas offer an alternative for affluent Indians hesitant to travel abroad, according to Prashant Biyani of Elara Securities India Pvt.
The market potential is substantial: local travel agency WanderOn anticipates this segment will reach $45 billion by 2027, reflecting global trends. India recorded nearly 3 billion domestic tourist visits in 2024, marking an 18% increase from the previous year, partly fueled by religious tourism. In contrast, outbound trips, amounting to 31 million visits, have also experienced rapid growth in recent years.
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Cleartrip Pvt, supported by a Walmart Inc. subsidiary in India, is witnessing this shift directly. Its head of hotels, Akhil Malik, reported that the company’s lineup of wellness-oriented activities surged by 300% in the July-September quarter compared to a year earlier, outpacing overall platform growth.
Cleartrip plans to introduce activities like stargazing and guided heritage walks next year. The next horizon for domestic travel is “activities and experiences,” Malik shared.
Makemytrip Ltd is also capitalizing on this trend. Packages featuring boutique hotels have risen by 15% from last year, with nearly one-third of local holiday packages now including at least one niche accommodation, according to co-founder and group CEO Rajesh Magow.
“We’re aiming to establish presence in areas where no one has ventured before,” said Kapil Chopra, founder of The Postcard Hotel. The hotel’s dolphin watching excursion in coastal Karnataka involves a boat ride to a secluded island and starts at over 4,500 rupees, while overnight stays begin at 39,000 rupees.
Though this growth is promising for business, it also poses risks of ecological harm to sensitive areas. India is currently the world’s third-largest source of tourism-related greenhouse gas emissions, following the US and China.
Fragile ecosystems
Excessive tourism has led to unregulated construction in delicate ecosystems, prompting scientists and academics to urge the government to implement regulations.
However, demand is only increasing, as these destinations offer a refuge for urban dwellers. In northern India, Aahana Forest Resort, located near Jim Corbett National Park, has seen a rise in visitors, aided by worsening winter pollution in Delhi.
Travelers are escaping the capital’s polluted air by heading to the resort, noted Avni Tripathi, the property’s chief marketing officer, who anticipates at least 20% revenue growth by the end of March 31.
At the same time, these offerings enhance hotel chains’ revenue per available room—a vital industry metric—and foster customer loyalty.
“The target demographic may be small, but its profitability is higher,” remarked Elara’s Biyani.
