Beyond the Palace: Rajasthan bets ₹3,000 crore on mass-premium tourism

Think of it as taking Rajasthan beyond the palace without taking the palace out of Rajasthan. A three-day wedding that can cost ₹2.5-5 crore at the State’s marquee luxury palaces is now getting a ₹35-70 lakh alternative, while a premium room costing ₹25,000-30,000 a night could be replaced by a stay priced at ₹8,500-12,000 for a family of four, without sacrificing the forts, havelis, desert landscapes, cuisine, music and culture that attract visitors to Rajasthan.

Driving this shift are about ₹3,000 crore worth of tourism projects that have moved into execution, alongside an estimated 45 per cent of Rajasthan’s FY26-FY30 hotel pipeline being aimed at the mass-premium and mid-market segment. Industry executives believe this could significantly expand Rajasthan’s appeal for weddings, leisure travel and corporate meetings, incentives, conferences and exhibitions (MICE), attracting visitors from southern and eastern India in addition to the State’s traditional markets in northern and western India.

Travel and hospitality expert Sheldon Santwan told businessline that the trend was clearly visible at the Rajasthan Domestic Travel Mart (RDTM) held in Jaipur from September 17-19, where weddings and events were formally incorporated into the platform for the first time.

According to Santwan, around 41 wedding planners participated alongside travel buyers, while nearly ₹3,000 crore across 40 tourism projects was identified as having moved to the implementation stage. The industry also renewed its demand for extending the Delhi-Jodhpur Vande Bharat service to Jaisalmer.

“Udaipur and Jaipur are sold out nearly 10 months in advance for peak wedding dates. By connecting event planners directly with lesser-known heritage properties in destinations such as Ghanerao and Shekhawati, we are creating an entirely new mid-luxury price band of ₹40-70 lakh,” Santwan said.

“Travellers are not looking for a stripped-down Rajasthan experience simply because it is cheaper,” he added. “They still want Rajasthani music, cuisine, culture, forts and desert dunes. The opportunity lies in delivering that experience at ₹8,500-12,000 a night instead of ₹25,000-30,000.”

The 45% shift

Rajasthan is expected to add an estimated 12,000-15,000 branded hotel rooms by FY30, with nearly 60 per cent of the pipeline located outside Jaipur, Udaipur and Jodhpur.

Mass-premium and mid-market hotels account for an estimated 45 per cent of proposed inventory, compared with 25 per cent in the upper-upscale and premium segment, 20 per cent in luxury and ultra-luxury properties, and 10 per cent in budget hotels.

While brands such as Taj, Oberoi, Leela, Raffles, Fairmont and Marriott continue to dominate the luxury segment, fresh capacity is emerging in destinations including Manpur-Machedi, Tonk Road, Kumbhalgarh, Ranakpur, Ghanerao and Shekhawati.

Tourism-related Memoranda of Understanding signed under the Rising Rajasthan initiative total about ₹1.38 lakh crore, with the ₹3,000 crore currently under development spanning greenfield projects, expansions and heritage-property conversions.

Former Federation of Hospitality and Tourism of Rajasthan (FHTR) President Kuldeep Singh Chandela said havelis in Shekhawati and Bundi are increasingly being restored and converted into tourism assets, while destinations such as Banswara and Rajasthan’s desert interior are also receiving greater attention.

Mice leaves the ballroom

Corporate travel is expected to support occupancy in these properties outside the peak wedding season.

“Corporate clients no longer want conventional hotel ballrooms for offsites. They are increasingly seeking heritage-meets-nature experiences,” Santwan said. “The challenge is not demand, but connectivity.”

Shuchi Tyagi, Secretary, Rajasthan Department of Tourism, said traveller preferences are shifting towards immersive, experience-driven tourism, prompting the State to facilitate private investment across rural, heritage and eco-tourism destinations.

Connectivity follows the rooms

However, lower-priced accommodation outside Rajasthan’s established tourism hubs will succeed only if travellers can reach these destinations conveniently and affordably.

FHTR has sought an extension of the Delhi-Jodhpur Vande Bharat to Jaisalmer, while industry stakeholders have also highlighted the need for improved and more consistent air connectivity to Jodhpur and Jaisalmer.

“Rajasthan is growing, and domestic tourism numbers have remained encouraging,” FHTR President Surendra Singh Shahpura said. “But stronger rail and air connectivity is essential for destinations such as Jodhpur and Jaisalmer.”

Ultimately, the ₹3,000-crore investment wave is not intended to replace Rajasthan’s ₹5-crore palace wedding market. Instead, it aims to build a ₹35-70 lakh tier beneath it, making the Rajasthan experience accessible to a far larger audience.

Published on September 23, 2026

Powered by Reporting Rajasthan Files