India’s hospitality sector is witnessing a shift in growth patterns, with Tier II and III markets outperforming metro cities amid global uncertainties, said Nikhil Sharma.
At the Iconic Travel & Tourism Summit 2026, Sharma noted that key metro markets such as Bengaluru and Hyderabad have seen a 25–27% dip in occupancy compared to last year.
In contrast, non-metro destinations are recording steady growth of 3–4% year-on-year, driven by strong domestic demand and improving infrastructure.
He added that better highway connectivity and rising regional travel are supporting this shift, positioning domestic tourism as a key stabiliser during global disruptions.
