Vacation Rentals vs. 5-Star Resorts: What Indian Families Prefer in 2025

Planning a family holiday in India has always been about balancing comfort, budget, and experiences. Traditionally, 5-star resorts were the go-to choice for families looking for luxury and convenience. But in 2025, the rise of vacation rentals—from Airbnb-style apartments to private villas—has changed the way Indian families are making travel decisions.

So, what’s really winning the hearts of Indian families today: vacation rentals or 5-star resorts? Let’s break it down.

The Appeal of 5-Star Resorts: Comfort Meets Prestige

For decades, 5-star resorts symbolized the ultimate family getaway. They still hold strong appeal in 2025, thanks to:

• Luxury & Facilities: Families enjoy access to pools, spas, kids’ play zones, and multiple dining options under one roof.
• Hassle-Free Stays: Room service, daily housekeeping, and concierge support mean parents don’t need to lift a finger.
• Prestige Factor: For many Indian families, especially when traveling in groups, staying in a well-known luxury chain still feels like a status symbol.

However, this comfort often comes at a steep price. A weekend getaway for a family of four at a luxury resort can quickly touch ₹50,000–₹1,00,000, depending on the destination.

The Rise of Vacation Rentals: Space, Privacy, and Value

In the last few years, vacation rentals have transformed into a mainstream option. In 2025, families are increasingly drawn to them because:

• More Space: Villas, apartments, or homestays often provide multiple bedrooms and living areas, making them perfect for larger families.
• Privacy: Unlike resorts where spaces are shared, vacation rentals offer a homely environment with no disturbances.
• Cost-Effective: A spacious villa with a kitchen often costs less than multiple resort rooms, especially for long stays.
• Local Flavor: Families love the authentic experience of staying in neighborhoods rather than commercial zones, offering a closer connection to culture and local food.

Platforms like Airbnb, Vista Rooms, and MakeMyTrip’s villa offerings have expanded across hill stations, beach towns, and heritage cities, giving families more choice than ever before.

What Indian Families Prefer in 2025

Interestingly, the preference depends on the type of trip:

• Short Weekend Trips: Families still lean toward 5-star resorts for convenience and instant luxury.
• Long Holidays: Vacation rentals win here, as they are more budget-friendly and provide space for children, grandparents, and extended family.
• Celebrations & Group Travel: Villas and vacation homes are becoming the go-to choice for birthdays, anniversaries, or festive getaways where bonding matters more than buffet spreads.

Hybrid Trend: The Best of Both Worlds

Another growing trend in 2025 is the hybrid travel style. Families book a few nights in a resort to enjoy luxury amenities and then shift to a vacation rental for the rest of the trip to save costs and enjoy privacy. This mix is becoming especially popular among millennial parents who want comfort but also value experiences and flexibility.

Final Word

By 2025, Indian families are no longer sticking to one format. Resorts are for pampering; vacation rentals are for bonding. The choice depends on whether the family prioritizes luxury services or shared experiences.

What’s clear is that vacation rentals are no longer just the budget option—they’ve become a lifestyle choice. For Indian families, the debate is less about which is better and more about which suits the trip.