As hordes of tourists flock to well-known spots like Goa, Jaipur, and Shimla, travel operators are quickly directing their investments toward unexplored areas of the nation. From dolphin watching off a quaint Arabian Sea island to discovering hidden waterfalls in the Himalayan foothills, the emphasis is on attracting high-spending travelers in search of new and authentic experiences.
Indian Hotels Co., the owner of the Taj brand, has been particularly proactive. Last month, it secured a majority stake in Sparsh Infratech Pvt., which oversees the wellness retreat Atmantan in the Western Ghats—a UNESCO World Heritage Site noted for its lush tropical forests and a diverse range of vulnerable or endangered species. A three-night stay here starts at around $1,260.
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In August, they collaborated with the boutique brand Brij, recognized for its properties in locales like Jawai, a town in western India that is rich in leopards.
“Wellness-focused experiences are set to be a major growth driver for the sector,” Managing Director Puneet Chhatwal mentioned to Bloomberg News, positioning the company to spearhead what he describes as “the future of experiential travel.”
Outlying locations
Other players are adjusting their strategies to keep pace. Leela Palaces Hotels and Resorts Ltd., along with boutique establishments like Untitled Hotels & Resorts Pvt., operators of The Postcard Hotel, are also branching into less-traveled areas.
Analysts suggest that this segment could surpass the more extensive leisure travel market. Luxury accommodations in newer or lesser-known locales offer a viable alternative to overseas travel for wealthy Indians, according to Prashant Biyani of Elara Securities India Pvt.
The market potential is considerable: local travel agency WanderOn anticipates this segment could reach $45 billion by 2027, reflecting global trends. India recorded nearly 3 billion domestic tourist visits in 2024, an 18% increase from the previous year, partly fueled by religious tourism. Outbound departures, a smaller figure at 31 million visits, have also experienced significant growth in recent years.
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Cleartrip Pvt., supported by a Walmart Inc. unit in India, is witnessing this shift firsthand. Akhil Malik, the head of hotels, indicated that the company’s portfolio of wellness-focused activities grew 300% in the July-September quarter compared to the previous year, outpacing the platform’s overall growth.
Cleartrip plans to introduce activities such as stargazing and guided heritage walks next year. According to Malik, the next frontier for local travel lies in “activities and experiences.”
Makemytrip Ltd. is also capitalizing on this trend. Packages that feature boutique properties have increased by 15% compared to last year, with nearly one in three local holiday packages now including at least one unique stay, according to Rajesh Magow, co-founder and group chief executive officer.
“We’re trying to venture where nobody has built before,” stated 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 costs upwards of 4,500 rupees, while its accommodations start at a minimum of 39,000 rupees per night.
While this growth may benefit business, it poses risks of ecological harm to vulnerable areas. India has now become the world’s third-largest contributor to tourism-related greenhouse gas emissions, trailing only the US and China.
Fragile ecosystems
Overtourism has led to unregulated construction in fragile ecosystems, prompting calls from scientists and academics for government regulation.
Additionally, these offerings enhance hotel chains’ revenue per available room—a crucial industry metric—and improve consumer loyalty.
“The target audience may be small, but its profitability is higher,” noted Elara’s Biyani.
