Hill Station Hospitality Trends 2024: Growth in Shimla, Dehradun & Mussoorie

# Hill Station Hospitality Trends 2024: Growth in Shimla, Dehradun & Mussoorie

India’s hill station hospitality sector has witnessed strong growth in 2023/24, driven by domestic leisure tourism, eco-tourism, and destination weddings. Key destinations such as Shimla, Dehradun, and Mussoorie have seen a rise in ADR, occupancy, and RevPAR, fueled by increasing demand for boutique stays, luxury resorts, and experiential travel.

• Shimla, Dehradun, and Mussoorie have seen a 35% increase in tourist footfall in 2023/24, supported by improved air and road connectivity.
• Dehradun Airport handled over 2.9 million passengers in 2023/24, marking a 42% growth from 2.1 million in 2021/22.
• New infrastructure projects, including improved highways and ropeways, are reducing travel time and increasing accessibility to these destinations.

• Shimla ADR increased to ₹9,150, reflecting the premium positioning of boutique and luxury stays.
• Mussoorie’s RevPAR showed strong growth, reaching ₹5,860, supported by the rise in eco-tourism and high-end leisure stays.
• Dehradun’s occupancy rate stabilized at 73.4%, driven by business tourism, education-related travel, and weekend getaways.

• Shimla added 550 new rooms, bringing its total inventory to 6,400 rooms.
• Dehradun saw a 15% growth in mid-market and boutique hotels, aligning with increasing tourist demand.
• Mussoorie expanded its luxury segment, with several heritage properties being refurbished to cater to high-end travelers.

• Shimla recorded ₹6,920 RevPAR, positioning itself as one of India’s top premium leisure destinations.
• Mussoorie’s RevPAR rose by 18% YoY, showcasing strong pricing power in boutique and resort-style accommodations.
• Dehradun, being a mix of business and leisure, saw RevPAR stabilize at ₹5,400.

• Shimla’s total room revenue reached ₹9.3 billion, reflecting steady demand for premium accommodations.
• Mussoorie’s revenue crossed ₹7.1 billion, supported by destination weddings and weekend tourism.
• Dehradun generated ₹6.5 billion in room revenue, driven by corporate stays and educational tourism.

• Luxury and boutique stays in hill stations saw a 25% increase in bookings in 2023/24.
• Eco-tourism and adventure travel are driving demand for sustainable accommodations.
• Wellness retreats, spa resorts, and heritage stays are growing in popularity among high-end travelers.

• Luxury resorts and boutique hotels make up 35% of Shimla and Mussoorie’s inventory.
• Dehradun has a higher share of mid-market and budget hotels, catering to business travelers and students.

• Shimla’s revenue per key stands at ₹25.2 lakh, leading among India’s hill stations.
• Mussoorie follows closely at ₹22.8 lakh, fueled by boutique stays and premium resorts.
• Dehradun maintains ₹19.4 lakh per key, reflecting a mix of business and leisure demand.

• Hill station hotel supply is expected to grow by 20% over the next five years.
• Luxury and boutique accommodations will continue to drive premium pricing.
• Adventure tourism and wellness retreats will shape future hospitality investments.

✅ Air and road connectivity improvements are increasing accessibility.
✅ Luxury and boutique stays are driving premium ADR and RevPAR growth.
✅ Total room revenue in hill stations exceeds ₹23 billion, highlighting market potential.
✅ M.I.C.E., destination weddings, and experiential travel are emerging revenue streams.
✅ Upcoming hotel developments in Dehradun, Mussoorie, and Shimla cater to diverse traveler needs.

• Expand boutique and wellness resort offerings to capture premium travelers.
• Leverage digital marketing to attract high-value eco-tourists and adventure seekers.
• Enhance infrastructure to accommodate increasing demand for luxury and experiential stays.
• Capitalize on M.I.C.E. and destination wedding demand with customized hospitality packages.