In case you believe that being in the right place at the right time for any company to be successful I would say that India is the best place to be and it is the best time to launch a business of renting out vacation homes in India. This is evident by the fact that major vacation rental companies such as Homestay in kerala , etc. have significantly expanded their operations to India.
As of 2016, the industry of hospitality in India was estimated at $36 billion, with 84% of that being spent by travellers from India. There is a gap of almost 100,000 rooms across the nation this is a huge opportunity to grow. Another thing to consider is the budget and value segment, 200,000 rooms are booked every day. I’m sure to label India as a ” vacation rental huge because of the following elements.
Increasing vacant homes
A report released by the ministry of housing in India states that among those 17.95 million dwelling units constructed throughout the nation between 2007-2012 11.09 million homes, or 62% were “vacant or shuttered”. In cities like Bangalore where, of 32.6lakh homes, around 3.6 lakh were vacant. This means each 10 10th house that you take into account is empty. The number of vacant homes is increasing because the number of Indians who are moving to other countries is growing. This means there is a greater possibility that these houses will be turned into rental properties for vacations. The population of the rural areas in India is declining rapidly, and this is causing the rural homes in India to be vacant. Many of these houses are occupied by older people who are looking to lease their homes as an alternative source of revenue.
Growing GDP
In the years between 2011 and 2014, the Indian economy was hit by the twin challenges of high inflation among consumers and the inability of the Manmohan Singh government to implement structural reforms that would increase private investment, which was down for a total of 10 quarters. Consequently, the country’s GDP has grown to 5.4% this year and is expected to reach 6.7% by 2019. Due to this economic optimism and the increase in confidence among consumers, confidence in the economy has increased. It is believed that the IMF also known as The International Monitory Fund was the latest institution to reiterate it, stating that the Indian economy is expected to grow by 6.5 percent in 2016. This means that India is the most rapidly growing economy around the globe. It is estimated that Indian GDP growth expected in the coming year .
Natural Beauty
The “incredible India is rich in natural beauty and providing guest houses such as Homestay in Thrissur, Kerala and biodiversity and is the most stunning country on earth. States such as Goa, Jammu and Kashmir, Kerala, Maharashtra, and the northeastern states are among the most exotic locations on the planet. Every state government is competitively advertising their respective states in the global and national tourism spaces. For instance of this, the Kerala tourism sector received the Golden Gate award or the travel Oscar on 14.04.2008 at the ITB Berlin to promote their film campaign called “The amazing Backwaters in Kerala”
Cost-effective living
It is essentially an efficient method to enjoy holidays. In the case of India, the concept is more concrete as the cost of living in India is significantly lower than the average. You could rent a luxurious property in India for three days in the range of Rs 30, 000 to 50 000 Rupees but it’s just 1 – 660 US dollars. This is for a luxury 3-bedroom apartment located in the desired location. Food is significantly less expensive in India than in western countries.
Challenges
In addition to all these advantages, There are a few issues to be overcome in the business. I was fortunate enough to attend a Homestay or Vacation rental owners gathering this past month in Kerala. It is in India, Kerala is the most visited vacation spot for vacation homes and homestays with a lot of tourists.
And in Kerala, Homestays in Thiruvilwamala are at the top of the list. It is closely followed by Thrissur district and being the following most popular tourist destination for vacation rentals in Kerala.
The most important problems faced by vacation homeowners included:
- Lack of support from Government agencies such as water, police power, electricity, labour, and tourism.
- Unstructured bookings – Bookings are easy for them, however, the process of booking is a mess, unplanned, and hard to control.
- There is a vast distinction between the expectations of guests and what they encounter after they arrive in India.
- If Indian property owners can conquer these hurdles and offer the most pleasant experience for their guests with help from the government. officials, I can say the industry of vacation rentals in India is going to be the next big thing. The “incredible giant” is asleep, all you need to do is awaken him
