- Both luxury and mid-segment brands now doing everything to cater to diverse guest segments without diluting core identity – Aditya Sanghi
- Midscale and upscale properties have become increasingly attractive for their combination of comfort and premium – Ajay Bakaya
- For mid-segment hotels, value-driven offerings cannot compromise quality – Abinash Manghani
- Post-pandemic, guests now prefer personalized small-scale events and tailored experiences – Varun Sahani
- Bleisure travel has surged, as remote work enables extended stays, while domestic tourism has gained unprecedented traction – Rohit Arora
The hospitality industry has seen a paradigm shift in customer expectations, especially in the post-COVID era. Luxury hotels, renowned for their personalized services, are now striving to meet even higher expectations by leveraging technology and investing heavily in staff training. High-end amenities such as private pools, exclusive tours, gourmet dining, and cutting-edge wellness facilities are becoming standard offerings. Moreover, these hotels are aligning with sustainability and experiential travel trends, providing immersive and conscious luxury experiences to appeal to a broader customer base.
In contrast, the mid-segment hotel market is gaining significant traction as a viable alternative to luxury hotels, especially in emerging economies like India. The gap between luxury and budget hotels has created a sweet spot for the ‘mid-market’ segment to grow exponentially, offering a blend of quality, convenience, and affordability, catering to domestic middle-class segment and international budget travellers. With rising demand in Tier II and Tier III cities, domestic mid-market brands are flourishing, supported by their ability to adapt to local needs and overcome operational challenges faced by international luxury chains.

Sharing insights about the ground reality, Aditya Sanghi, Co- Founder & CEO, Hotelogix mentioned to T3 that the premium luxury hotel segment has recovered slowly but is already showing promising signs, indicating a positive outlook for the future. Occupancy rates in this segment of hotels have shown a steady increase, from an abysmal 30% in 2021 to 42% in 2022, to 67% in 2023, to about 70% in 2024. Their focus has shifted from luxury for luxury’s sake to providing experiential stays, wellness offerings, and personalized services. Business travel, though slower to pick up pace, is being offset by increased demand for weddings, social events, and leisure vacations.
He also revealed that the mid-segment hotels have become the key growth driver for the Indian hotel industry. The rising number of domestic travelers searching for affordable, yet quality experiences has driven this segment’s impressive growth, constituting approximately 60% of the country’s branded inventory in 2023-2024. Leisure trips, staycations, and tier-2 and tier-3 city explorations have led to a steady surge in demand.
According to Sanghi, post-pandemic, premium and mid-segment brands quickly adapted to the changing market scenario and guest expectations. For example, they realized that digitization is imperative to their long-term survival in this fiercely competitive market. Due to this, we have seen the adoption of cloud-based solutions, including Hotel PMS, Revenue Management System, Channel Manager, Booking Engine, Guest-facing Mobile Apps for contactless services, etc.
Market trends & growth trajectory

Talking about the market trends, Vibhas Prasad, Director, Leisure Hotels Group shared that the hospitality sector has evolved significantly, with a growing preference for short getaways and experiential travel to drivable destinations offering unique experiences. “In response to this trend, we have expanded our presence to include Dehradun, Manali, McLeodganj, and Vrindavan, with Ayodhya soon to join the list. Strong demand from travellers in Delhi NCR, one of our key markets, has driven our focus on hill destinations, ensuring a robust presence in these sought-after locales”, added Prasad.
With regards to the growth trajectory, LHG has embraced adaptability and innovation as key drivers of growth. These efforts have yielded tangible results, reflected in a 12% year-on-year revenue growth and a 5% increase in occupancy. Prasad noted, “As we look ahead to 2025, Leisure Hotels Group remains steadfast in its mission of innovation and guest-centricity, ensuring that we continue to set benchmarks in the hospitality industry.”

Ajay K. Bakaya, Chairman, Sarovar Hotels & Director, Louvre Hotels India, also added that the post-pandemic era has reshaped traveler preferences, with a strong emphasis on health, hygiene, and personalized services. The midscale and upscale hospitality segments have experienced a surge in demand, particularly from domestic travelers seeking quality stays at accessible prices. While luxury hotels cater to a niche audience, midscale and upscale properties have become increasingly attractive for their combination of comfort and premium offerings.
Sarovar Hotels has adapted to these trends by enhancing the guest experience through technology and sustainability. Initiatives like contactless check-ins, mobile-based personalized services, and eco-friendly practices have positioned us as a preferred choice among travelers. “Our properties in Tier II and Tier III cities have particularly thrived, leveraging the growing demand for thoughtfully designed, high-quality hospitality in emerging markets”, shared Bakaya.
“In 2024, Sarovar Hotels achieved remarkable year-on-year growth in both occupancy and revenue. This success reflects the ability to cater to evolving guest needs while maintaining a strong presence in midscale and upscale segments”, said Bakaya. “As we expand into new cities, we aim to further enhance our offerings and continue delivering exceptional hospitality experiences.”

Rohit Arora, VP North & Goa Operations & Head of Leisure Sales, Apeejay Surrendra Park Hotels Limited (ASPHL), revealed that travellers now seek personalized experiences, enhanced safety, sustainable practices, and a demand for value-driven luxury. Bleisure travel has surged, as remote work enables extended stays, while domestic tourism has gained unprecedented traction.
According to him, “We have adapted by focusing on technology-driven experiences, such as contactless check-ins, robust Wi-Fi for remote workers, and data-driven guest personalization. Additionally, we have enhanced our focus on sustainability and wellness offerings, ensuring alignment with contemporary traveller priorities. Zone by The Park brand caters to the mid-segment with a vibrant design and flexible spaces for modern needs, while THE Park Hotels continue to redefine premium luxury with curated, local experiences”. Despite challenges, the revenue and occupancy rates have shown positive growth for ASPHL.

Adding to above, Abinash Manghani, Chief Executive Officer, WelcomHeritage Hotels, shared that the Indian travelscape has witnessed a dramatic shift toward domestic and experiential travel, with guests prioritizing personalized experiences and sustainable stays. For premium and mid-segment hotels, this translates into providing an overall experience that is more than luxurious – authentic, meaningful experiences, intuitive services along with the hotel’s philosophies now play a vital role. For mid-segment hotels, value-driven offerings cannot compromise quality.
“We’ve also observed a significant increase in demand for weekend getaways, eco-conscious stays, and boutique properties that offer privacy and safety. We’re constantly adapting and refining our offerings to not just meet but surpass guest expectations – we do this by leveraging technology through tools such as SIMPL for flexible payment, making our hospitality experiences more accessible. In addition to introducing initiatives such as Buy now, pay Later’ that eased the financial burden on our guests, we recently launched a Flexible EMI Option.”
Mentioning about the growth trajectory, Manghani said that WelcomHeritage has consistently achieved 19% year-on-year revenue growth, with occupancy levels increasing by 7%, driven by the rising demand for domestic travel.

Varun Sahani, VP Operations, Kamat Hotel India Ltd shared post-pandemic trends indicating several key changes. Once a baseline expectation, health and hygiene have now become top priorities for guests. Features like touchless payments, contactless check-ins, and enhanced sanitation standards are now essential. The prevalence of remote work has led to reduced corporate travel. However, this has given rise to demand for long-stay options and work-friendly rooms designed for comfort and productivity, shared Sahani.
Pre-pandemic luxury was often associated with fine dining and exclusive events. Post-pandemic, guests now prefer personalized small-scale events and tailored experiences. Previously a buzzword, sustainability is now a core concern for guests. Guests increasingly value eco-friendly practices and thoughtful environmental stewardship.
“We’ve embraced innovative strategies focusing on personalization, technology, wellness, and sustainability. Initiatives like contactless technology, express check-ins/checkouts, e-bills, and smart room features ensure convenience and safety”, added Sahani. “Moreover, we’ve strengthened our focus on creating eco-friendly ecosystems, with heightened visibility for our sustainability efforts. By aligning with these evolving trends, we aim to enhance guest satisfaction and maintain a competitive edge.”

More about trends, Ashwani Khurana, Founder & CEO, Karma Lakelands shared that travelers are now prioritizing safety, wellness, and personalized experiences more than ever before, and seeking destinations that offer privacy, open spaces, and eco-friendly practices, reflecting a shift towards mindful and purposeful travel. Additionally, staycations and short getaways have become increasingly popular, as people look for escapes closer to home.
There’s also a growing demand for experiential travel, with guests seeking activities like wellness retreats, nature immersions, and cultural engagements. Technology has further transformed the landscape, with guests expecting seamless digital experiences from booking to check-out. In the mid-segment, the focus on value-for-money combined with premium amenities has created new opportunities for hybrid offerings.
“We have expanded our wellness offerings, including the launch of the Seven Seas Spa, and continue to enhance our eco-conscious initiatives, such as organic farming and energy-efficient practices, catering to the growing demand for mindful travel”, shared Khurana. “From our curated Independent Art Symposiums to immersive activities like organic farm tours, golf clinics, we provide meaningful experiences that resonate with today’s discerning travelers. We have prioritized seamless digital engagement, offering an easy-to-navigate website, contactless services, and personalized digital communication to enhance convenience and safety for our guests.”
Increasing crossover of hospitality brands
The shift in trend highlights the growing appeal of ‘affordable luxury’ – redefining how travellers perceive and prioritize indulgence in the hospitality industry. As the quest to take the bigger share of the pie persists in between luxury and mid-segment hotels, the question arises: what truly defines luxury in the post-pandemic world? With travelers increasingly valuing sustainability, personalization, and experiential journeys, the definition of luxury is being reimagined. From boutique mid-market properties offering curated local experiences to high-end hotels integrating technology-driven personalization, the hospitality sector is entering a new era.
Sanghi expressed that this strategic shift reflects an industry adapting to evolving guest expectations and economic realities. Luxury chains entering the budget segment aim to cater to value-conscious domestic travelers seeking reliability, aesthetics, and brand trust at affordable costs. Conversely, mid-segment brands are innovating with premium offerings to attract aspirational travelers looking for elevated experiences without extravagant costs.
This shift necessitates a meticulous modification in brand strategy, according to Sanghi. Preserving exclusivity while delivering value requires a leaner operational model, smart design, and technology integration for luxury and high-end brands. Meanwhile, mid-scale brands are focusing on curating experiences by adding premium touches that resonate with travelers seeking indulgence.
“One thing is clear – both luxury and mid-segment brands are now doing everything to cater to diverse guest segments without diluting their core identity. Ultimately, this crossover is about remaining relevant, dynamic, resilient, and attractive in a competitive market for luxury and mid-segment brands”, noted Sanghi.
Sharing opinion on above, Prasad shared that while this trend intensifies competition, it also validates the core philosophy of delivering affordable luxury that blends high-quality experiences with accessibility. “At Leisure Hotels Group, we see this evolution as both an opportunity and a challenge. It drives us to innovate and enhance our offerings to cater to the varied needs of modern travellers, while also contributing to the overall growth of the market.”
He further added that the strategy remains focused on differentiation through unique value propositions, such as community-driven stays under Bedzzz brand, eco-conscious practices, and curated experiential travel.” To stay ahead of these changes, LHG is expanding the Bedzzz brand into urban and semi-urban destinations, providing a perfect mix of convenience, comfort, and unique experiences.”
Bakaya further elaborated that the crossover trend, where luxury brands venture into budget offerings and mid-segment brands introduce premium options, highlights the evolving demands of travelers who seek flexibility and quality across different price points. This shift underscores the need for brands to innovate and adapt while maintaining a strong identity.
Sarovar Hotels embraces this trend by reinforcing leadership in the midscale and upscale hospitality segments. The strategy focuses on expanding into new cities while building on established presence in Tier II and Tier III markets. By tailoring offerings to regional preferences and maintaining a strong commitment to sustainability and personalized service, Sarovar is said to continue meeting the diverse expectations of guests.
In addition, Sarovar also aims to leverage innovation to enhance the guest experience, offering locally inspired stays, wellness-driven amenities, and technology-enabled convenience. “This approach allows us to cater to both price-sensitive travelers and those seeking premium hospitality experiences, ensuring we remain competitive in a rapidly evolving industry”, added Bakaya.
When asked Arora, he highlighted that the increasing crossover of hospitality brands signals a dynamic shift in the industry. This trend reflects evolving consumer preferences, where travellers seek tailored experiences across price points without compromising on quality or brand assurance. ASPHL views this development as both an opportunity as it underscores the importance of brand adaptability and innovation in addressing diverse market needs while maintaining a distinct identity.
“Our portfolio, spanning THE Park Hotels, THE Park Collection, Zone by The Park, Zone Connect by The Park, and Stop by Zone positions us uniquely to cater to this spectrum. For instance, while THE Park Hotels emphasizes luxury and curated experiences, Zone by The Park, a social-catalyst brand catering to design conscious price conscious travellers”, added Arora. “This crossover trend influences our strategy to remain customer-centric and agile. We focus on understanding guest expectations and leveraging design, technology, and personalized services to meet them.”
Features traditionally associated with luxury – such as thoughtful design, sustainable practices, and bespoke services – are being adapted to mid-market offerings, creating a seamless experience across price points. This approach ensures catering to diverse market segments without diluting brand essence, fostering both loyalty and growth, said Arora.
Sharing inputs with regards to navigating the crossover trend, Sahani added, “Our response to this evolution is the inception of IRA, a concept designed to bridge the gap between high-end service and affordability”, Sahani said. As guests today are more price-conscious but still desire premium experiences, IRA is said to reflect this balance by offering exceptional service and premium amenities at flexible, value-driven pricing.
“Post-pandemic, we’ve also expanded into Tier-2 and Tier-3 cities, introducing luxury experiences to markets that were previously underserved”, expressed Sahani. “These cities hold immense potential, and through IRA, we’re delivering high-quality, affordable luxury experiences to these regions. This approach has not only diversified our reach but also enabled us to cater to the growing demand for value-based premium hospitality.”
The crossover trend, according to Manghani, underscores the evolving definition of luxury, which is no longer limited to opulence but now encompasses authentic experiences, sustainability, and personalization. This shift has opened opportunities for mid-segment and premium brands to blur the lines and cater to a wider audience.
At WelcomHeritage, this trend aligns with the strategy of offering exclusivity, blending luxury with heritage at accessible price points. “We aim to bridge the gap by maintaining the charm of boutique properties while meeting the expectations of modern travellers”, said Manghani. “The crossover also inspires us to innovate with technology-driven personalization, flexible pricing models, and curated local experiences, ensuring that we remain competitive across varied market segments.”
Khurana told T3 that the increasing crossover of hospitality brands reflects the evolving dynamics of consumer preferences and market demands. Today’s travelers seek value-driven experiences, whether at a luxury or budget price point, and are willing to explore brands that align with their lifestyle, values, and specific needs. This trend underscores the growing importance of adaptability and differentiation in the hospitality industry.
The democratization of luxury and elevation of mid-segment standards ultimately create a more competitive and guest-focused market. He expressed, “At Karma Lakelands, we embrace this shift as an opportunity to refine and expand our offerings while maintaining our core identity of sustainable luxury. We focus on creating customizable experiences that appeal to different demographics, from premium-segment travelers seeking curated wellness retreats to value-conscious guests exploring weekend getaways. Rather than competing solely on price, we prioritize delivering exceptional value through unique experiences, such as nature walks and wellness-driven activities.”
While crossover strategies often focus on expanding offerings, Karma Lakelands is said to double down on sustainability and purpose-driven hospitality, which resonate across luxury and mid-market audiences. This strategic balance ensures that the brand remains competitive in a market that increasingly values brand versatility and guest-centricity.
Challenges in preserving exclusivity amidst growing competition
Talking about setting up a unique preposition, Khuranashared that maintaining all-inclusive luxury experience in the face of evolving guest expectations presents its own set of challenges. The rise of social media and the constant pursuit of “the next best thing” can sometimes dilute the perceived value of the all-inclusive concept. Karma Lakelands addresses this by prioritizing personalized experiences, cultivating a sense of exclusivity, embracing innovative all-inclusive concepts, and maintaining impeccable service standards.
Adding more on challenges,Manghanishared that while guests expect contemporary conveniences, it’s vital for them to retain the timeless charm of their properties. Balancing the two have their own challenges. However, an exceptional team and dedicated hotel partners are equipped to address these effectively. “In a competitive market where affordability is often mistakenly linked to compromise, we differentiate ourselves with an unparalleled level of service across properties”, added Manghani.
Also, Sahani shared that the primary challenge lies in maintaining the essence of exclusivity while positioning in the affordable luxury category. Striking the right balance between offering high-end experiences and keeping prices reasonable is a delicate task. This segment often faces pressures from higher operational costs due to pricing structures. He also added, “While these allow us to drive business, they can sometimes dilute the sense of exclusivity. Another challenge is upholding high-quality service and amenities without inflating costs, as guests expect premium experiences at competitive price points.”
When asked Bakaya, he mentioned that as Sarovar expands into new cities and regions, one of the challenges faced is balancing the growing demand for personalized and upscale experiences with maintaining operational efficiency. This requires continuous investment in staff training, innovative technology, and guest-centric services to ensure Sarovar upholds the highest standards of hospitality while staying true to brand ethos.