Country Spotlight

Strengthening Efficiency in India’s Hotel Industry: Infrastructure, Integration, and Opportunity

May 23, 2025
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5 mins
Bakuun

India is one of the world’s fastest growing travel markets, and its hotel sector is keeping pace. The industry is projected to reach USD 13 billion by 2027, supported by rising travel demand and sustained infrastructure investment. In 2024 alone, over 42,000 new hotel keys were added, reflecting strong investor confidence and a strategic shift towards Tier II and III cities. These cities, ranging from established urban centers like Jaipur and Ahmedabad (Tier II) to developing hubs such as Udaipur and Dehradun (Tier III) offer attractive opportunities, improved infrastructure, and rising demand from business and leisure travel. Nationwide occupancy rates climbed to 67.5%, the highest in a decade, with the average daily rate (ADR) reaching ₹8,055. This performance highlights the sector’s potential across both established and emerging destinations.

For hotel suppliers, travel agencies and OTAs, this momentum presents a valuable chance to revisit how supply is managed and distributed. The systems that support these partnerships are functional but often stretched. There is now a clear opportunity to modernize backend processes and improve how travel businesses collaborate.

Upgrading distribution methods, automating contracting processes, and streamlining payment workflows would enable local hotels and international travel partners to collaborate more efficiently and profitably.

Key Challenges in India’s B2B Travel Landscape

1. Optimizing Distribution
Many hotels work with intermediaries, such as OTAs and bedbanks, to expand their reach. While effective, this model often includes commissions and markups that can reduce revenue margins. Transitioning to direct digital connections offers an opportunity to simplify distribution and improve cost efficiency.

2. Improving Contracting and Distribution Processes
Hotels frequently manage multiple agreements across a range of platforms and partners. As these processes scale, manual methods may lead to delays in rate updates and availability, increasing the chance of missed opportunities or booking discrepancies. Introducing automation can streamline these steps and support quicker, more accurate updates.

3. Elevating Matchmaking Between Hotels and Buyers
As the Indian market diversifies across Tier I, II, and III cities, there is a strong opportunity for platforms that help hotels discover and connect with the most relevant demand partners.

4. Expanding Market Access with Agility
Introducing new distribution partners or entering new markets requires a seamless onboarding experience. Streamlining integration processes can help hotels grow and scale their network, and as well as respond quickly to new demand sources without added complexity.

A Digital Solution for a Growing Market

India’s B2B hotel landscape is well-positioned for digital advancement. With the right tools, hotels can enhance collaboration with partners, lower operational costs, and unlock new revenue channels.

Bakuun’s B-Marketplace is designed to help hotels and travel providers improve operational performance without adding complexity. It works alongside existing systems to create a more connected and efficient experience. Here are several ways it helps address common B2B challenges:

1. Direct Distribution Network
Hotels can share inventory directly with OTAs, travel agencies, and demand partners. This reduces reliance on intermediaries and supports transparent pricing structures.

2. Automated Operations
Hotels and buyers can manage agreements digitally, with real-time updates to rates and availability. This allows for quicker coordination and fewer manual touchpoints all from one platform.

3. Centralizing Access to Global Demand Networks
Seamless connectivity with numerous channel managers allows hotels to effortlessly expand their reach, providing demand partners with access to a diverse global network of properties. B-Marketplace serves as a single gateway offering hotels a simplified interface to activate partners through one direct contract, one system, and one set of processes.

Success Story: Ottila x Bakuun

Ottila, a global travel operator, leverages Bakuun to access hotel supply across Asia, including India. Through this infrastructure, Ottila can onboard properties faster and distribute inventory to its network of demand partners more efficiently. For Indian hotels, this unlocks a direct pathway to global travel sellers—expanding reach while preserving control.

4. Transparent Pricing Structure
Integrated payment tools, powered by PayDocker, support automated settlements in multiple currencies. This helps reduce transaction costs and eases reconciliation efforts.

Looking Ahead

India’s hotel sector continues to evolve in scale, diversity, and ambition. As more travelers return and infrastructure expands, there is a strong case for improving how businesses within the sector work together. Travel suppliers and agencies that invest in efficient, digital-first systems are well positioned to take advantage of this growth while improving daily operations.

Learn More About B-Marketplace

Discover how B-Marketplace can help you eliminate intermediary costs, automate contracting processes, and expand your distribution network.

Contact www.bakuun.com/contact today to Schedule a Demo.

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