India travel demand shifts to experiential, value driven stays as Moustache Group of Hotels eyes selective expansion – CNBC TV18
India's travel sector is witnessing a recovery in demand, while traveller expectations continue to evolve beyond basic accommodation toward more immersive and value-driven experiences, according to industry experts.
Founders of Moustache Group of Hotels, Abhishek Khandelwal and Deepak Agarwal, said post-pandemic travel behaviour indicates a shift in how consumers assess trips, with emphasis on overall experience rather than price alone.
Agarwal said travellers are looking for deeper engagement with destinations, including local experiences, food, and a stronger sense of place.
"Travel is no longer limited to reaching a destination and returning. Travellers are seeking a connection with the place," he said.
The comments come against the backdrop of a broader recovery in the sector. Domestic tourism continues to remain a key driver of growth, while international travel has also recovered to levels above pre-pandemic benchmarks.
Industry estimates point to sustained demand, with premium hotel occupancy expected to remain stable in the near term.
Shift toward value-conscious travel
Khandelwal said travellers today are more price-aware but not purely price-driven, with decision-making increasingly focused on overall value.
"Consumers are comparing options more actively, but they are also choosing more intentionally. The focus is shifting to what kind of experience a stay delivers," he said.
This shift is being reflected in segmentation within the hospitality industry, with operators offering differentiated formats across budget, mid-scale, and experience-led stays. Demand is also emerging in niche categories such as pet-friendly travel, as consumers look to align trips with lifestyle preferences.
More flexible travel and booking patterns
According to Agarwal, travel behaviour has become more flexible, with both longer stays and shorter, more frequent trips being observed across segments. Remote and hybrid work arrangements have also influenced how travel is planned.
Booking patterns are split between advance planning for family and peak travel periods, and short-notice bookings for quick trips. Mobile platforms continue to play a growing role in this shift, particularly for last-minute travel decisions.
Expansion strategies linked to destination trends
Hospitality expansion strategies are also being shaped by the shift in demand toward less conventional and experience-led destinations, away from only established tourist hubs.
Khandelwal said destination selection is becoming more important as travellers seek places with distinct character and atmosphere.
He added that the company is adopting a selective expansion approach across different formats, with plans to scale its portfolio over the coming years.
Interest rising in experiential hospitality formats
Investor interest in alternative hospitality formats such as hostels and boutique stays is also increasing, supported by overall sector growth and evolving travel preferences.
Agarwal said experiential formats are increasingly being viewed as part of the mainstream hospitality market rather than niche offerings, supported by stronger demand visibility and evolving consumer behaviour.
Premium segment positioned for selective growth
In the premium segment, differentiated and design-led stays are being positioned around experience, privacy, and location-specific offerings rather than scale.
Agarwal said expansion in such formats is expected to remain selective, depending on destination suitability and demand characteristics.
He added that the broader shift in travel behaviour is favouring stays that are aligned with local context and offer differentiated experiences, rather than standardised offerings.
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