Homestays, villas to grow 21% a year to Rs 41,510 crore by FY29: Booking.com
Representative image: peterweideman / Pixabay
India's homestay and villa market is set to grow 21.2% a year to INR 415.1 billion by FY29, says Booking.com's report released on October 14, 2026.
What Happened
Homestays, villas and holiday apartments are growing almost twice as fast as India's accommodation market as a whole, according to a report released on Wednesday, October 14, 2026. The fourth edition of Booking.com's How India Travels series, The Homes Edit, prepared with VIDEC Consultants, estimates that the gross booking value of India's alternative accommodation market rose from Rs 6,890 crore (INR 68.9 billion) in FY23 to Rs 23,310 crore (INR 233.1 billion) in FY26. It projects the market will reach about Rs 41,510 crore (INR 415.1 billion) by FY29, a compound annual growth rate of 21.2 per cent, against 11.2 per cent for the accommodation market overall.
Key Facts
- Alternative stays covered: homestays, villas, apartments, serviced apartments, bed and breakfasts, guesthouses and other non-hotel properties.
- Gross booking value: INR 68.9 billion in FY23, INR 233.1 billion in FY26, projected INR 415.1 billion in FY29.
- Projected growth: 21.2 per cent a year from FY26 to FY29, against 11.2 per cent for all accommodation.
- Online bookings of such stays are forecast to double from INR 93.4 billion to INR 186.6 billion, growing 25.9 per cent a year.
- The online share is expected to rise from 40.1 per cent in FY26 to 44.9 per cent in FY29.
- Online listings of holiday homes, apartments and homestays more than doubled, from 102,200 in FY23 to 215,000 in FY26.
Why It Matters
For a long time, an Indian holiday meant a hotel room or a relative's house. The report shows a third option going mainstream. Travellers looking for local experiences, more space and stays that suit a whole family are choosing homestays and villas, and the growth is spreading geographically. Nearly half the listings are in cities and metros, and the report points to smaller towns and tier-II cities as the new markets.
The shift matters for local economies, because many of these properties are small operations rather than hotel chains. The doubling of online listings in three years suggests many such owners are now putting their properties on booking platforms for the first time.
The report also shows how much of the sector is still informal. Much of the market continues to operate offline, with hosts taking bookings over phone calls and messaging apps. Even by FY29, more than half the business is expected to happen outside online platforms. That makes it harder for travellers to compare quality and for authorities to track safety standards.
The Ministry of Tourism, according to the report's coverage, said the segment needs stronger quality assurance and regulatory frameworks to reach its full potential. For travellers, that is a reminder to check reviews, registration and cancellation terms before booking a private stay.
| Measure | FY23 | FY26 | FY29 (projected) |
|---|---|---|---|
| Gross booking value (INR billion) | 68.9 | 233.1 | 415.1 |
| Online listings | 102,200 | 215,000 | not given |
| Online share of bookings | not given | 40.1% | 44.9% |
Impact
Short-term: Travellers planning festive-season and winter trips will find more homestays and villas listed online, especially in emerging destinations, and more competition with hotels on price.
Long-term: If the projections hold, homestay owners in smaller towns could earn more from tourism, while pressure grows for clearer rules on registration, safety and quality.
Who is affected: Families and groups who prefer private stays, homestay and villa owners, especially in small towns and rural areas, booking platforms, hotels competing for the same guests, and state tourism departments that register such properties.
Key Takeaway
India's homestay and holiday-rental market is projected to grow 21.2 per cent a year to about Rs 41,510 crore by FY29, nearly twice as fast as accommodation overall.
Questions and Answers
How big is India's homestay and alternative accommodation market?
According to Booking.com's How India Travels 2026: The Homes Edit, released on October 14, 2026, its gross booking value was INR 233.1 billion (about Rs 23,310 crore) in FY26 and is projected to reach INR 415.1 billion (about Rs 41,510 crore) by FY29.
How fast are homestays growing compared with hotels?
The report projects 21.2 per cent annual growth for alternative accommodation from FY26 to FY29, against 11.2 per cent for the accommodation market as a whole.
What counts as alternative accommodation?
The report includes homestays, villas, apartments, serviced apartments, bed and breakfasts, guesthouses and other non-hotel stays.
Are most homestays booked online?
Not yet. Online bookings made up 40.1 per cent of the market in FY26 and are expected to reach 44.9 per cent by FY29; many hosts still take bookings by phone and messaging.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
Sourced and fact-checked by the Peepals Global Editorial Team
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