NEW DELHI: Luxury hotel chains are rolling out premium staycation packages this summer as they seek to attract affluent Indians who may be rethinking overseas holidays amid disruptions linked to the West Asia conflict and Prime Minister Narendra Modi's recent appeal to curb overseas travel and prioritize tourism within India.
Hotels including ITC Hotels, The Leela, Marriott International and Roseate Hotels are packaging butler services, chauffeur transfers, spa treatments, dining credits and club access into short-break offers aimed at travellers looking for luxury experiences closer to home.
The push comes as schools close for summer vacation, while disruptions to international travel and a weaker rupee make overseas holidays less attractive. Industry executives say affluent travellers are increasingly opting for shorter, premium domestic getaways, creating an opportunity for city hotels and urban resorts.
A family of four in Delhi is considering checking into ITC Maurya for three nights in the second week of June instead of taking a longer holiday. Arjun Kapoor, 39, said the family wanted to just “chill out” and spend time being pampered at a hotel.
“Urban and in-city hotels are seeing stronger relevance as consumers look for premium experiences without long-distance travel,” Anil Chadha, managing director of ITC Hotels Ltd, told Mint.
HVS Anarock, in its India Hospitality Industry Overview 2025 report, said demand for shorter, more frequent breaks, wellness escapes, family celebrations and premium leisure stays is expected to support city hotels this year. While summer is a peak travel season, April to June is typically a softer period for occupancies at city hotels as corporate travel slows, prompting operators to pursue leisure guests more aggressively.
“Long weekends have emerged as a big magnet for those who want to make the most of the 72-hour window," Chadha added.
Luxury pivot
The Leela Palaces, Hotels & Resorts said it is seeing strong demand for what it calls “slow luxury”.
“Luxury travellers today are prioritizing emotional value, convenience and highly personalised experiences, and city staycations are exceptionally well-positioned to deliver that,” Anuraag Bhatnagar, chief executive officer of the company, told Mint.
The company has introduced packages that include butler services and club-access experiences. Offers such as 'Royal Summer Escape', which allows guests to pay for two nights and stay for three, are aimed at encouraging longer holidays across destinations.
Such stays can also boost spending on dining and other on-property experiences, according to industry executives. During FY26, Leela Palaces' same-store revenue per available room (RevPAR) grew 14% year-on-year, while food and beverage revenues increased 15%.
At Roseate Hotels & Resorts, the focus this year is on wellness-led staycations, with Ayurveda-inspired therapies, hammam rituals, personalised spa treatments, premium suite stays and brunch experiences.
“Travellers are prioritizing wellness, mindful luxury and personalised experiences over conventional vacations,” said Kush Kapoor, chief executive officer of Roseate Hotels & Resorts.
Such premium add-ons—from butler services and luxury transfers to club access and spa privileges—are increasingly being used by hotels to support higher room rates.
At The Ritz-Carlton Pune, suite packages starting at about ₹28,000 a night plus taxes include cocktail- and sushi-making sessions, spa and wellness access, complimentary stays and dining for children, and curated family activities ranging from baking classes to scavenger hunts and night safari-themed experiences.
Marriott International said it is seeing stronger demand at its resort properties during the school holiday season and expects city hotels to benefit from the staycation trend.
Monisha Dewan, vice-president, sales and distribution for South Asia at Marriott International, said there has been little impact so far from the government's call for spending restraint, though the industry remains in a “wait-and-watch” mode regarding international conference business. She added that loyalty-led offerings, member-exclusive rates and food-and-beverage benefits are helping attract leisure guests seeking greater value from short breaks.
"Any moderation in outbound travel could further support domestic luxury tourism, particularly as affluent Indians increasingly choose shorter but more frequent premium getaways, but we will have to wait and watch," she added.
Grand Hyatt Gurgaon said demand for staycations has started the season on a strong note, with families, couples and professionals gravitating towards packages that combine accommodation with dining, wellness and family experiences.
Domestic cushion
The growing focus on domestic travellers comes as hotels navigate a mixed international demand environment. While India's inbound tourism has moved beyond pre-pandemic levels, the recovery has been uneven. Foreign tourist arrivals reached 20.57 million in 2024, around 15% above pre-covid levels, before easing to a provisional 20.09 million in 2025, a decline of 2.4%. Nearly half of these visitors were people of Indian origin.
The resilience of domestic travel is helping offset pockets of weakness in inbound tourism. Speaking on Oberoi Hotels parent EIH's fourth-quarter earnings call on Friday, managing director and chief executive officer Vikramjit Singh Oberoi said foreign travel into India had been affected by developments in West Asia, but the impact had been "more than compensated" by strong domestic demand.
HVS Anarock's recent report added that in the first three months of 2026, the hotel sector sustained strong momentum with average room rates of ₹10,000-10,200, occupancy of 67-69%, and RevPAR of ₹6,700-7,038.