New Delhi, June 22 (). Indians will spend more on cultural activities, experiences, hotels and travel than on physical goods between 2025 and 2030. This information was given in the report released on Monday.
According to a report by real estate services and investment firm CBRE Research, during this period, household expenditure on tangible goods is likely to grow at a compound annual growth rate (CAGR) of 9.1 percent, while expenditure related to experiences is likely to increase at a CAGR of 10.3 percent.
During this period, the expenditure on hotel accommodation is expected to grow at the rate of CAGR of 10.6 percent.
The report said that the number of lifestyle hotels in India is still less, hence there is a lot of potential for developers and investors.
Gen Z travelers crave a sleek, uniquely designed environment that can serve as a backdrop for social media. They want personalized service that breaks away from traditional corporate styles, and active communal spaces that host experiences like wine tasting, acoustic performances and local cultural events.
From self-check-in to smart-room automation, wellness integration and seamless technology have now become an expectation, not a unique feature, the report noted.
To meet this demand, a new category is emerging, the lifestyle hotel, which combines the design and locational characteristics of an independent hotel with the operational scale, distribution network and loyalty programs of an institutional brand.
The COVID-19 pandemic accelerated this shift toward experiences and pent-up demand is likely to sustain it through 2022, the report said.
This trend is increasing mainly because of ‘Generation G’. This is currently the largest demographic group in the Asia-Pacific region and their spending is projected to grow faster than any other current generation.
Total hotel supply in the Asia-Pacific region is projected to grow at a steady 5 percent CAGR between 2015 and 2025. However, lifestyle hotels grew by 19 percent during the same period. It is estimated that the supply of lifestyle hotels will grow at a CAGR of 10 percent through 2030, which is five times the projected 2 percent growth rate for the entire hotel market.
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