Indians likely to spend more on travel, hotels and experiences than goods by 2030: Report

Spending by Indians on experiences recreational and cultural activities restaurants hotels and travel is expected to outpace spending on physical goods between 2025 and 2030 a report said on MondayDuring this period household expenditure on physical goods is likely to grow at a 91 per cent compound annual growth rate while broader experiential spending will likely grow at 103 per cent CAGR the report from real estate services and investment firm CBRE Research saidThe spending on hotel accommodation is expected to grow at an even sharper 106 per cent CAGRWith relatively low lifestyle hotel penetration compared to regional markets India offers substantial potential for developers and investors particularly through the repositioning and conversion of existing independent hotel assetsGen Z travellers demand striking curated design environments that double as social media backdrops personalised service that avoids corporate predictability and activated communal spaces that host experiences such as wine tastings acoustic performances and local cultural eventsWellness integration and seamless technology from selfcheckin to smartroom automation are now expectations rather than differentiatorsA new category the lifestyle hotel is emerging to meet this demand combining the design and local character of an independent property backed by the operational scale distribution networks and loyalty programs of an institutional brandThe report highlighted that the shift toward experiences was accelerated by the COVID19 pandemic and sustained by pentup demand since 2022The trend is being primarily driven by Generation Z which currently accounts for the largest demographic bloc across the Asia Pacific region and their spending is forecast to expand faster than any other living generationThe overall hotel supply across the Asia Pacific region grew at a steady 5 per cent CAGR between 2015 and 2025 However lifestyle hotels grew at 19 per cent over the same period The supply of lifestyle hotels is projected to maintain a 10 per cent CAGR till 2030 five times the 2 per cent growth forecast for the broader hotel marketFor property owners and institutional investors the lifestyle hotel segment represents a compelling doublewin measurable RevPAR and ADR premiums over standardized assets and a capitalefficient conversion pathway that maximizes longterm asset value said Anshuman Magazine Chairman ampamp CEO ndash India SouthEast Asia Middle East ampamp Africa CBREThe report highlighted that upper upscale lifestyle hotels across Asia Pacific in 2025 commanded a 13 per cent revenue per available room RevPAR premium over traditional properties in the same categoryUpscale lifestyle brands added a further 7 per cent premium achieving this despite smaller room sizes by generating stronger food and beverage revenues and running leaner operationsThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever