So far, 2025 has been an interesting year for smaller hotels in India.
Despite high hopes for a strong performance this year, hoteliers have had to contend with quite a few different challenges, like lower footfall in traditional hotspots, competition from bigger and more established chains, and differences in performance between regions.
As you might expect, this has left a lot of smaller hotel owners feeling uncertain about the rest of the year.
The good news is that there’s still plenty of opportunity to turn things around, get more bookings, and finish the year on a high note. One fantastic upcoming opportunity is Diwali, which usually lines up with some of the highest tourism levels
in India.
In this article, we’ll show you how smaller hotel owners in India can make the most of Diwali and get some great results, regardless of how their summer went.
What Went Wrong in Summer 2025?
A lot of hoteliers in India went into summer 2025 with high hopes. The rocky years of the pandemic are a thing of the past, domestic tourism rates are rising steadily, and independent, boutique hotel experiences are in fashion.
However, the reality fell short of the optimism.
Here are some of the challenges Indian hoteliers have been grappling with this
summer:
Economic shifts
Smaller hotels have always struggled to compete with bigger, more established chains, and 2025 has been no exception. A lot of independent hotels have had to cut their rates simply to survive as the giant chains soak up all their potential guests.
Lower footfall
Some hotels in typically busy locations have been dealing with a lower footfall than expected this year. Why is this happening? We can’t say for sure just yet, but it could be due to a few factors, like changing preferences or tourists having less disposable income than usual.
Low Average Daily Rate (ADR)
A lot of smaller hotels are struggling to maintain the average daily rates they need to turn a profit and survive, let alone grow. One reason for this is the squeeze from established chains that we mentioned earlier. Another could be an over-reliance on Online Travel Agencies, which can charge extremely high commission, eating into rates.
Why Diwali 2025 is Different (and More Hopeful)
Now we’ve taken care of the gloomy part, let’s look at the positive side of things. With Diwali on the way, smaller hotels in India have a great opportunity to turn things around and start getting more guests at better rates.
Diwali coincides with the end of the Monsoon season in India and the beginning of the dry season, when tourism rates usually surge. And millions of Indians will travel specifically for Diwali, to visit friends and relatives around the country and take part in celebrations.
Indian parents now travel more than ever, and 75% say it’s a top priority for them. The fact that more families are travelling is promising news for the upcoming Diwali season.
3 Smart Moves Tech-Savvy Hotels Are Making Right Now
So, the opportunities are out there. How can you, as a smaller hotel owner, make sure you make the most of them?
The answer lies in technology. In this section, we’ll look at 3 specific things you can start doing right now to put you in a strong position for Diwali 2025.
Launching Diwali packages early via Robust Booking Engine & Google Hotel Ads
Did you know that search interest for “Diwali Sales” begins as early as August? Indian shoppers are already spending money on Diwali months in advance, and there’s no reason to think their travel plans will be any different.
If you can launch Diwali packages early on, you’ll get ahead of your competitors and start picking up guests who are planning their festive travels in advance.
For this, you’ll need a robust Booking Engine, like ours at Hotel-Spider, to create attractive and appropriate packages for your guests. A good Diwali package could include transport to major events and attractions, traditional meals, and discounts on entry to festivities.
Google Hotel Ads can also help you connect with guests who are specifically searching for Diwali accommodation.
Creating personalized offers with CRM automation
Today’s travellers are tired of generic offers and copy-pasted communications. They want something more personal and meaningful from the hotels they follow.
With the right Customer Relationship Management (CRM) tools, you can deliver this. Your CRM should contain a ton of information about your guests, like their age, stay history, dietary preferences, activities, and more.
You can integrate your CRM with your Property Management Systems (PMS), booking engines, and email/SMS platforms to create personalized ad campaigns, email sequences, and highly targeted offers.
Setting up last-minute direct booking promotions
Last-minute bookings are becoming something of a trend in India. In fact, in 2024, nearly half of Indian travelers booked their flights within a week of their departure.
Smart hotels can capitalize on this trend to get even more bookings during the upcoming Diwali season. Create some exclusive last-minute deals that include perks like free breakfast, hotel transfer, or room upgrades to guests who book close to their dates.
Your Booking Engine is your best friend here. It should allow you to create attractive, clear, and user-friendly packages for last-minute bookers, and it should also allow for dynamic pricing so you can easily adjust your rates during busy times.
How Hotel-Spider Can Light Up This Diwali for You
Hotel-Spider’s Booking Engine is the perfect tool to help you take advantage of Diwali 2025 and get more bookings and more delighted guests.
Here are just a few of the ways it can help:
- A powerful, user-friendly booking engine that allows you to create detailed, easy-to-browse packages and promote them across multiple channels like OTAs and metasearch engines
- Rate parity controls so you can maximize your margins at all times
- A pre-festival consulation call where we’ll personally walk you through everything you need to do to get the most out of our tools during Diwali
