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Why Ibis Is Betting Big on Indian Metros as Competitors Turn to Smaller Cities


Ibis launched its fifth Mumbai property Ibis Mumbai BKC on March 20, 2025.

Skift Take

As Ibis India is on its way to meet its initial pipeline target, it is reluctant to move away from its micro markets-focused strategy. The fact that it does not require large land parcels for hotels lends further edge for expansion in land-strapped metros and Tier-1 markets.
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Ibis India is focusing on metros like Delhi, Mumbai, Hyderabad, Pune, and Bengaluru to drive its growth. The idea is to expand presence in markets that have a clear and present demand along with a need for supply, said JB Singh, president and CEO of InterGlobe Hotels, the development joint venture between Accor and InterGlobe Enterprises for Ibis hotels in India‚ Bangladesh, Nepal, and Sri Lanka. 

“We follow what we call the densification strategy, according to which we enter a market and keep building hotels there,” Singh told Skift on the sidelines of the launch of Ibis Mumbai BKC on Thursday. “Given the urbanization trend and how cities are developing into metropolises with so many micro markets. We like to go to these micro markets.”

Singh said the brand would continue to follow that strategy and build hotels in these markets. “We expect these cities to keep getting bigger and have more micro markets and more demand for quality capacity.”

Location is of utmost importance to the brand, according to Singh. “We are very fussy about our location. It has to be an AAA location, and cannot be even 500 metres away from the AAA location because location is something we commit to our customers.” An AAA location is a prime, highly desirable location within a city which offers accessibility, visibility and amenities. 

However, this does not mean that Ibis will not enter Tier-2 markets at all, he clarified. “As long as Tier-2 markets fulfill the criteria for demand and key location, we will consider them as well. Right now, not many are checking that box, but they are always in our radar, especially the state capitals.”

Ibis’ model of building in tight spaces is also helping it expand in markets that are otherwise lacking land for bigger hospitality projects. 

India-Specific Changes: While Ibis has to meet the global standards of service set by Accor, the India team does localize to cater to the market. “Majority of our guests are Indian and domestic travelers, so we are at the liberty to make certain changes,” said Tejus Jose, director of operations for Ibis and Ibis Styles in India. 

“For instance, in many global locations, Ibis does not provide in-room dining, but we thought it was essential to the Indian market. It was a big deviation from what is done globally, but we believe it is the right thing to do,” Jose told Skift.

Ibis India is now reevaluating its next stage of growth as the initial target of 30 properties is set to be achieved, according to Singh. 

MakeMyTrip Launches AI-Driven Feature for Personalized Stay

Online travel platform MakeMyTrip has launched an AI-powered feature called ‘Collections’ to offer personalized suggestions for hotels and homestays. Collections will use generative AI and deep traveler insights to categorize stay options into themes, the company said, adding that this will help users find accommodations that best match their travel needs and preferences. 

The model will analyze past search intent, bookings patterns, and customer reviews and align the appeal of each destination with the traveler’s core interests. “Moreover, it continuously learns from user interactions, ensuring smarter recommendations with every search. For example, a frequent luxury traveler will see high-end hotel recommendations aligned with their past bookings, while a budget-conscious traveler will receive options optimized for affordability,” the company said in a statement. 

At the Skift India Forum last week, Rajesh Magow, co-founder and group CEO of MakeMyTrip, emphasized that while it's still unclear whether AI will eventually replace OTAs, the company remains vigilant not out of fear of disruption, but to stay ahead of the curve and harness AI's full potential.

Goa’s Plan to Crackdown on Illegal Business Activities on Beaches

Goa’s department of tourism has said that it is taking action against touts and illegal businesses on the state's beaches. The move aims to ensure safety and experience of tourists, it said, while also only allowing authorized businesses to operate in designated areas. 

For this, the government has requested the help of shack operators, beach associations, and other stakeholders by asking them to not allow unauthorized vendors to operate on beach and shack premises. 

“In response to concerns raised by beach associations, they have been asked to take proactive measures. In case they are unable to control the situation, the department of tourism will step in with legal mechanisms to permanently curb unauthorized activities,” the department said in a statement. 

The state is looking to revamp its image and diversify its offerings amid social media controversy. In an interview with Skift last month, Goa’s tourism minister Rohan Khaunte said that he wants the “Goa mein kuchh bhi chalta hai” (anything goes in Goa) image to end. “We need good tourists who come to Goa, enjoy, make some memories, but not create ruckus in the state. Goa has been giving a very clear message that causing nuisance is not welcome.” The state has been working to solve the challenges including those around cab drivers, stray dogs and cattle, and air connectivity.

How GHA Is Catering to India's Demand for Luxury Hospitality

Global Hotel Alliance said its loyalty program GHA Discovery witnessed 18% growth in membership in India in 2024. GHA said it now has 623,000 members in the country.

Chris Hartley, CEO of Global Hotel Alliance, said that in 2024, it witnessed record-breaking stay revenue and membership growth from India. “The rapid growth of India’s luxury travel market is reflected in the soaring engagement of Indian travelers with our brands worldwide.”

International spend by Indian GHA DISCOVERY members surpassed domestic revenue for the first time, with Thailand, the UAE, and Singapore as the top international destinations.

Air India-Air New Zealand Ink Codeshare Deal

Air India has signed an agreement with Air New Zealand to introduce a codeshare partnership on 16 routes spanning India, Singapore, Australia, and New Zealand. One of the most significant aspects of the deal is a commitment to explore the feasibility of a direct flight service between India and New Zealand by 2028.

“This partnership will not only strengthen our presence and simplify customer journeys, but also help us develop traffic so that, in time to come, we may viably operate a non-stop service between India and New Zealand, which we and Air New Zealand have committed to explore together with the respective authorities,” Campbell Wilson, managing director and CEO of Air India, said.

The agreement between the two Star Alliance partners also outlines Tourism New Zealand’s commitment to growing inbound tourism from the Indian market. More than 80,000 international travellers arrived from India last year, a 23% rise on 2019, with 72% traveling during off-peak months. 

Air New Zealand CEO Greg Foran also emphasized India’s growing significance as a travel market: “This codeshare agreement is an important first step, offering more options for customers while we work to understand what a direct service could look like.”

Direct Flights Between Hyderabad and 10 Destinations Soon

The Rajiv Gandhi International Airport (RGIA) in Hyderabad is expected to commence direct flights to 10 new international destinations soon. At present, direct flights to 22 international destinations operate from Hyderabad.

Over the next six months, the airport will have flights operating to Hong Kong, Hanoi, Addis Ababa, and Amsterdam. Discussions are underway for services to Paris, Australia, Kathmandu, Krabi, Jakarta, and Denpasar within a year.

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