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As domestic travel trends dominate the global market, is the hospitality sector strategically and technologically equipped to delight the ‘inward wanderlusters’?
Why travellers prefer domestic trips
These are many factors driving the preference for travel and vacations inside one’s country over international trips:
- Geopolitical instability: Ongoing uncertainties across many regions, complex visa regulations, and the risk of sudden border shifts compel many travellers to view their country as a “safe haven”.
- Economy and tourism: Rising inflation and high fuel surcharges have made international travel a luxury. Domestic holidays offer better “value for money”, allowing families to enjoy premium local stays over budget international ones.
- Sustainability and purpose: Domestic trips with limited air travel allow travellers to minimise their carbon footprint, support local businesses, and reduce overtourism in popular hubs.
- Ease and spontaneity: Modern travellers crave “whycations” and immediate mental rest. The ability to book a trip today and arrive at a destination tomorrow is appealing for its convenience and spontaneity.
- The “coolcation” trend: As extreme summer heatwaves become more common in international travel hubs like the Mediterranean, many stay local to enjoy temperate climates in domestic coastlines and mountains.
Holidaying closer to home is no longer a niche trend. Now we are seeing many countries and regions experience this surge, boosted also by national tourism reforms.
Domestic tourism boom in numbers
35% of Indians plan to explore more within India in 2026, compared to 25% in 2025.
(Agoda)
Impact of domestic travel growth on the hospitality sector
This surge in local travellers is forcing a rethink of hospitality and tourism management. Hotels that once relied on seasonal international “peak” periods are now seeing more consistent, year-round occupancy from local guests. This shift is forcing the mid-market segment to elevate its offerings, and there is a rising “premiumisation” of local stays. Modern travellers who choose local destinations over international travel increasingly expect the luxury and service they would find in a high-end international resort, with the added warmth of local authenticity.
Hospitality readiness for domestic tourism boom
Some independent hotels may still struggle with the sudden influx of weekend demand due to a lack of staff or system bandwidth. But larger chains and forward-thinking boutique properties have successfully adapted into treating domestic guests as a primary customer base, ensuring that staffing, amenities, and technology reflect this new reality.
How hospitality technology supports domestic travel growth
To keep pace with domestic tourism in 2026 and beyond, properties are increasingly relying on sophisticated digital platforms and travel management software.
1. Integrated hospitality ERP
An ERP system allows hotels to manage domestic demand across multiple departments, from housekeeping to finance. A could-native ERP can handle fast-paced operations and complex guest needs without the rapid turnover of weekend guests leading to staff burnout.
2. AI-driven personalisation
Local guests often return to hotels and accommodations multiple times, and AI solutions are key to satisfying their personalisation demands. These tools can store guest preferences to offer “welcome back” perks, tailored dining recommendations, or bespoke packages.
3. Contactless guest journeys
With domestic travellers valuing speed and efficiency, mobile check-ins and digital keys have become the new standard. Contactless technology reduces friction at the front desk, freeing staff for high-value guest interactions and personalised service.
4. Hyper-local predictive analytics
Advanced software can now predict local spikes based on regional events, weather patterns, or local holidays. This allows hotels to adjust dynamic pricing in real time, ensuring they capture the domestic market effectively while remaining competitive.
5. IoT-enabled smart rooms
“Workationers” are an emerging domestic traveller segment that expect seamless connectivity and comfort. IoT technology allows them to control lighting and climate via personal devices, making hotel rooms high-tech extensions of their home offices.
Embrace Hospitality 5.0 with AI-powered hotel solutions. Contact us today.
The domestic frontier: Adapt or be left behind
The surge in local tourism has set a new baseline in hospitality, with its steady rise as a compelling alternative to the complex logistics of outbound travel. For hospitality establishments to thrive in this landscape, they must stop viewing local guests as “gap-fillers” for international absences. Invest in robust hospitality systems and adapt to the unique demands of local travellers, empowering your business to turn the domestic travel boom into a sustainable, high-growth future.
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Author
Manoj K Mohanty
Senior Vice President – Sales, South Asia & South East Asia
He brings extensive industry experience and a track record of success in selling technology and services to global clients across hospitality markets. He has proven to be essential and crucial Sales personnel who is primary involved and contributing to acquiring new clients in South Asia and South East Asian regions.
