StayVista: Indians Are Finally Ready to Embrace Alternative Stays

14.07.2024 - 03:23 / skift.com / Peden Doma Bhutia

The demand for alternative accommodations in India is at an early stage but continues to grow.

According to Skift Research’s India on the Move: A Traveler Survey, only 7% of Indian travelers opt for vacation rentals. However, Skift Research’s preliminary analysis also indicates that the Indian short-term rental industry is poised to expand into a $3 billion market by 2033, driven by new brands, a shortage of hotels, and shifting preferences.

Skift recently chatted with Amit Damani, the co-founder of StayVista, one of India’s largest luxury villa rentals brand, to discuss the current market.

The company, founded in 2015, now has 850 properties spread across over 50 destinations in India. The company has also raised capital from consumer brand focused investors such as DSG Consumer Partners, Singapore Angel Network and Singularity Holdings, as well as from Google’s Rajan Anandan.

“The market for alternative accommodations in India is still in its nascent stage,” Damani said.

The shift towards alternative stays, especially luxury villas, is largely driven by the unique preferences of Indian travelers, who form 97% of StayVista’s clients. “Indian travelers often travel in groups — be it family getaways, celebrations, or pilgrimages,” said Damani. “They seek private, exclusive spaces that can accommodate their entire group, which hotels often cannot provide.”

He said the Covid-19 pandemic significantly accelerated the demand for private holiday homes as people valued privacy and preferred driving to destinations rather than flying. “This organic demand boosted our business and we didn’t have to spend a single penny on marketing.”

The preference for alternative accommodations has also evolved. “Travelers want environments that foster uninterrupted conversations and allow them to spend quality time with loved ones. Alternative accommodations offer travelers the freedom to do what they want, be it enjoying a private pool or customizing meals to their dietary needs,” he said.

The design and location of accommodations also play a crucial role. “These properties are often in unique locations, from villas next to waterfalls to those on lakesides. Settings that provide an experience that hotels can’t match,” Damani said.

There’s a trust gap in India when it comes to alternative accommodations, and brands could help.

Damani explained that creating brands within the alternative accommodation sector addresses the trust gap. Travelers want assurances about the quality and consistency of their experiences, which unbranded properties often lack.

“By developing recognizable brands, companies can offer a reliable standard of service, thereby filling the trust void that has historically plagued this sector,” he said.

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