Over the past two decades, rising incomes in India largely translated into higher spending on homes, automobiles and consumer goods. Today, however, a different set of aspirations is beginning to shape consumption patterns. Increasingly, consumers are placing greater value on experiences over possessions, with travel, wellness retreats, culinary exploration and destination-led getaways becoming an integral part of modern lifestyles.
According to CBRE, spending on experiences is expected to outpace expenditure on physical goods between 2025 and 2030, reflecting a deeper structural shift in consumer behaviour. As disposable incomes rise and premiumisation gathers pace, hospitality, leisure and recreation are emerging as some of the biggest beneficiaries of India’s evolving experience economy.
As consumer preferences evolve, the hospitality sector is seeing a fundamental transformation. Hotels are no longer competing solely on location or inventory; they are increasingly differentiating themselves through experiences that are immersive, personalised and emotionally engaging. From lifestyle properties that seamlessly blend design, gastronomy and local culture to boutique destinations and hybrid formats that combine wellness, work and leisure, the sector is expanding well beyond the conventional idea of accommodation.
The CBRE report highlights that younger travellers, particularly Gen Z, are gravitating towards visually distinctive and curated spaces that offer more than just a stay. They value personalised service, seek communal experiences ranging from live performances to local cultural engagements. The reports indicate that between 2015 and 2025, lifestyle hotels recorded a 19% CAGR. The momentum is expected to continue through 2030, with lifestyle hotel supply projected to grow at 10 per cent annually compared with the broader hotel market.
Another defining characteristic of India’s experience economy is the growing preference for travel that prioritises well-being, meaningful connections and a slower pace of life. Wellness retreats, digital detox escapes, culinary journeys and community-led experiences are increasingly resonating with travellers seeking more than fleeting vacations. The rise of workations and longer stays is further blurring the boundaries between leisure and everyday life, giving rise to a more experiential form of luxury rooted in comfort, authenticity and personal enrichment. In response, hospitality and experience-driven real estate are being designed with a deeper understanding of human behaviour and emotional engagement. Increasingly, the focus is shifting from creating physical spaces to crafting environments that foster relaxation, connection and a sense of belonging, reflecting the changing aspirations of a more mindful and experience-oriented consumer.
As the experience economy gathers momentum, developers and hospitality brands are rethinking the way destinations are conceived and delivered. The focus is gradually shifting from creating standalone assets to building integrated ecosystems that bring together hospitality, retail, entertainment and wellness in a more seamless manner. Partnerships with wellness and experiential brands are further enriching the value proposition, enabling operators to cater to evolving consumer preferences.
Nandini Taneja, CEO, Bhumika Enterprises, says, “The expectations of travellers have changed significantly over the last few years. People are no longer looking at hospitality merely through the lens of convenience; they are seeking experiences that feel distinctive and memorable. Whether it is wellness-led retreats, culturally immersive stays or properties that seamlessly blend leisure with lifestyle, the emphasis has shifted towards meaningful experiences. Consumers today value authenticity and personalization as much as comfort. This shift is also redefining how hospitality assets are conceived, with brands increasingly focusing on creating destinations and communities rather than simply offering accommodation. In many ways, hospitality is becoming an extension of modern lifestyles and aspirations.”
Moreover, the rise of experiential travel is also redefining the role of hospitality in regional development, with destination-led growth emerging as a powerful economic driver. Spiritual and cultural centres such as Shirdi, Ayodhya, Varanasi and Rishikesh are gradually evolving beyond their traditional identities to become vibrant tourism ecosystems supported by improving infrastructure and rising visitor inflows. Pilgrimage tourism, once characterised by short visits, is increasingly giving way to longer stays and more immersive experiences, creating sustained demand for hospitality, retail and leisure offerings.
Neeraj Gulati, Managing Director, Assotech Realty, says, “Hospitality has evolved into much more than a support infrastructure for tourism; it has become an important catalyst for regional development. Markets like Shirdi are a compelling example of how destination-led hospitality can transform local economies. Better accommodation, experiential offerings and improved connectivity encourage visitors to stay longer, which in turn creates opportunities for retail, food and beverage, local businesses and employment generation. There is a virtuous cycle where hospitality is strengthening the overall economic ecosystem of a region. As destinations mature, they begin attracting investments and consumer spending that extend far beyond tourism itself.”
Thus, hospitality’s next chapter is likely to be shaped less by inventory and more by the experiences it creates. As India gradually moves from a consumption model centred on ownership to one increasingly defined by aspirations, emotions and shared memories, lifestyle hospitality is emerging as one of the most significant beneficiaries of this transformation.