The traditional hotel booking model in India is undergoing a rapid transformation. Previously, travelers were often forced to pay for an entire day even if they only needed a room for a few hours. However, several online platforms are now offering rooms for short durations, catering to the specific needs of modern travelers. This model, known as short-stay or hourly-stay, is gaining immense popularity across the country. The shift is driven by the evolving needs of travelers and the increasing reach of technology-based booking platforms. Today, thousands of hotels in more than 50 cities across India are offering this facility, providing a win-win situation for both guests and hotel owners.
The Genesis of the Short-Stay Concept
The rise of short-stay platforms like Bag2Bag originated from real-life travel challenges. According to reports, the founder of the company realized the need for a flexible booking model after a personal experience where he needed a hotel room for only 6 hours during a trip. The hotel demanded a full day's rent and eventually refused to provide the room for a shorter duration. This incident highlighted a significant gap in the Indian hospitality market. Launched in 2019, the company now collaborates with over 10000 properties, with hourly stay facilities available in more than 6000 locations. The company has reported that its revenue from the hourly stay segment has grown manifold over the past few years.
A Growing Market with Multiple Players
Apart from Bag2Bag, several other platforms like Brevistay, MiStay, Hourly Rooms, and Qwiksta are actively operating in this space. Even major travel companies have started incorporating hourly booking options into their services. Brevistay also started with the aim of solving this specific problem for travelers. In the initial years, convincing hotel owners to adopt this model was a challenge, but they gradually began to understand the commercial benefits. Today, the company has lakhs of registered users and thousands of hotels are associated with its platform.
Expanding Beyond Couples
In its early stages, short-stay was primarily associated with the needs of couples. However, its image has undergone a major change over time. Now, business travelers, passengers waiting between flights or trains, candidates appearing for interviews, students going for exams, professionals attending meetings, and families are also utilizing this facility, while industry experts suggest that the scope of customer usage is constantly expanding, which is the biggest success of this model.
Benefits for Hotel Owners
The short-stay model has opened a new revenue stream for hotels. Typically, many rooms remain vacant for several hours between morning check-outs and evening check-ins. With the help of hourly bookings, hotels can use this idle time. Hotels located near airports and railway stations are benefiting the most from this trend, while by providing the same room to different customers during the day and night, hotels can Notably increase their income.
Technology Paving the Way
Initially, hotel owners found the process of frequent check-ins and check-outs complex. However, modern hotel management systems and channel managers now support slot-based bookings. This allows hotels to easily manage room availability, and customers can also enjoy the convenience of instant bookings.
Positive Outlook from Rating Agencies
The growing trend of short-stays comes at a time when the Indian hospitality sector is experiencing strong growth. Rating agency ICRA estimates that the revenue of the Indian hotel industry could grow by 6 to 8 percent in the financial year 2026. According to the agency, occupancy in premium hotels is expected to remain around 72 to 74 percent, with average room rates also showing strength. ICRA believes that domestic tourism, business travel, weddings, conferences, and MICE activities will keep the demand for the hotel industry strong.
CareEdge Ratings stated in its report that the continuous growth in domestic tourism and corporate travel is a positive sign for the hotel industry. The agency believes that due to limited new hotel supply and strong demand, the industry's earnings could remain healthy, while cRISIL Ratings has also expressed a positive outlook for the Indian hospitality sector, noting that increasing travel activities and strong demand in the premium hotel segment will support industry growth in the coming years.
Persistent Challenges
Although the sector is expanding rapidly, some challenges still remain. Social hesitation, security concerns, apprehensions of some hotels regarding brand image, and a lack of awareness among travelers are major hurdles. Also, operational complexities sometimes arise due to multiple customers using the same room throughout the day.
Experts believe that with the boom in domestic tourism, the growing mix of business and leisure travel, the changing mindset of young travelers, and the increasing reach of digital booking platforms, the short-stay market could grow even faster in the coming years. Just as the pay-per-use model became popular in the transportation sector, the hotel industry is also rapidly accepting this model. Consequently, short-stay is no longer seen as just an alternative facility but as an emerging mainstream trend in the hospitality industry.