Branded Alternate Vacation Market Reached $483.7 mn in 2024

New Delhi, June 24, 2025: India’s branded alternate vacation market has reached $483.7 million in 2024, per latest research by Axon Developers in partnership with SKYE, a hospitality and tourism consulting advisory. The market has jumped by around 46.8 per cent compared to 2023, when it was sized at $329.6 million.

In a time when the demand for immersive tourism, authentic travel experience and curated services is rising, the alternate vacation space and short rental market is rising at an unprecedented speed.

In 2024, India added over 550 branded rental villas, taking the cumulative volume to 1,711. In the next five years, it is estimated that the total volume of rental villas is set to cross 5,000. In terms of market value, the alternate vacation industry is slated to reach $1,560.7 million, growing at a CAGR of 26.4 per cent.

“The nature of tourism is transforming. Marred by hectic lifestyle and urban fatigue, people now want to enjoy tourism in a more authentic, localised and nature-centric ways. Many tourists don’t prefer signature stays in mainstream hotels,” said Ankit Kansal, MD, Axon Developers.

“Rather they want to indulge in curated style tourism pinned on enjoying local food delights, explore cultural heritages and interact with indigenous communities. This necessitates the need for niche private villas and farmhouses with bespoke services. In a mainstay hotel such a degree of localization and versatility is difficult to realise.”

Another factor that has resulted in the sweeping growth of private holiday villas has been jump in demand for offbeat trails. In the midst of many popular tourist destinations becoming overcrowded, demand is unfolding for offbeat trails, especially in places such as Konkan, Himalayan peaks and valleys, Nilgiris, Sahyadri, etc. Spending time in tranquil and less crowded natural destinations can be a great way to relax and refresh.

However, many such places lack conventional hotels and resorts. Consequently, the alternate space, comprising villas, farm houses, bungalows, beach houses, etc. are stepping up to fill the gap.

“The lucrative nature of the vacation rental space is luring bigger players such as ITC and IHCL, who are now coming up with managed villas and boutique hotels,” said Taran Chabra, Director, SKYE Hospitality.

“Ama Stays, which is part of IHCL has crossed over 250 private properties in January 2025. Similarly, Storii, which is part of ITC has added new properties in UP, HP and Goa. This indeed is a watershed moment for Indian alternate hospitality segment.”

Kansal added, “The positive impact of a burgeoning alternate hospitality will cascade to other sectors such as real estate, tourism, aviation, food and beverage, etc. One of the sectors that will see immediate rise in demand will be the second and vacation home industry.”

It is noteworthy that “weekday occupancy of rental villas is modest at around 30-40 per cent. However, during weekends, an 80-100 per cent occupancy is achievable, which can easily take the average occupancy to 50 per cent. This can be a source of commendable leasing income for second home buyers”.