Last Updated:June 10, 2025, 12:21 IST
Young professionals from small-town India are turning travel dreams into thriving hospitality businesses through franchise models.
From hostels in the hills to villas by the beach, young India is building the future of travel—one franchise at a time.
As India’s travel and hospitality sector reshapes itself in the post-pandemic world, a new wave of entrepreneurs is making its mark—young, rooted in regional identity, and deeply aligned with the evolving preferences of modern travelers. At the heart of this shift is a growing reliance on franchise-led hospitality models, which are enabling aspiring business owners to build meaningful, experience-driven enterprises with cultural and economic relevance.
One of the clearest examples of this change is Zostel, India’s pioneering backpacker hostel chain, which has become a launchpad for young, first-time entrepreneurs. These individuals, mostly in their late 20s and early 30s, are blending their passion for travel with a deep understanding of local culture, using the Zostel franchise model to offer authentic, immersive stays.
Take Yuvraj from Aurangabad, Maharashtra, for example. A 28-year-old mechanical engineer, Yuvraj transformed his family’s defunct hospital into a vibrant 48-bed Zostel. With an investment of ₹55 lakhs, the property broke even in less than six months and now enjoys an 80% average occupancy rate. It generates over ₹1 crore annually from stays and an additional ₹70+ lakhs through food and beverage. A visit from digital influencer Nikhil Mumbaikar further amplified its visibility, showcasing how social media can be a powerful accelerator for franchise-led hospitality ventures.
In Poombarai, Tamil Nadu, Bala took a different route—building his Zostel from scratch as a slow travel retreat nestled in the hills. With an investment between ₹1–2 crore, Bala’s model taps into a growing demand for offbeat, hyperlocal travel experiences that resonate with urban audiences seeking authenticity and escape.
Further north in Gangtok, Sikkim, Karma Sonam has expanded from a single property to a 40-bed hostel with over ₹50 lakhs in investment. His ventures see a return of 1.5–1.8x, driven by an emphasis on storytelling, local partnerships, and community engagement.
What unites these entrepreneurs isn’t just their location—it’s their mindset. They aren’t chasing scale in the conventional sense, but rather building purpose-led micro-enterprises with strong returns and distinctive identities. Their ventures are deeply personal yet professionally run, driven by passion as much as performance.
This evolution also signals a broader shift in India’s perception of franchising. Once associated mainly with fast food or retail, the franchise model is now gaining credibility in hospitality, offering lower capital risk, brand credibility, and operational support. Zostel, in particular, balances structure with flexibility—providing partners with brand strength, booking infrastructure, and community programming, while allowing them to craft their own guest experiences. This hybrid approach is particularly appealing to young professionals seeking autonomy with backing.
StayVista, a premium villa rental platform, also echoes this entrepreneurial sentiment. Inspired by the Japanese concept of Ikigai—the pursuit of purpose and passion—many young Indians are choosing hospitality not just as a profession, but as a way of life. The desire to “work from paradise” has led many to turn dream destinations into viable businesses.
With India’s appetite for travel surging, StayVista has seen a rise in young entrepreneurs onboarding villas across Goa, Himachal Pradesh, Assam, and Kerala, managing them under the brand’s umbrella. These ventures allow owners to not only build sustainable income streams but also embrace freedom at work—a defining value for today’s generation.
The New Blueprint for Hospitality Entrepreneurship
What’s emerging across India’s Tier 2 and Tier 3 cities is not just a trend, but a transformation. These are not cookie-cutter hospitality ventures—they are locally rooted, thoughtfully designed, and purpose-driven. Whether it’s through Zostel’s community-driven hostels or StayVista’s curated villas, young professionals are leveraging franchise models to rewrite the rules of hospitality.
In doing so, they’re not just offering places to stay, they’re offering stories, experiences, and identities. And that’s what makes this new wave of entrepreneurship not just profitable, but powerful.
Swati Chaturvedi, a seasoned media and journalism aficionado with over 10 years of expertise, is not just a storyteller; she’s a weaver of wit and wisdom in the digital landscape. As a key figure in News18 Engl…Read More
Swati Chaturvedi, a seasoned media and journalism aficionado with over 10 years of expertise, is not just a storyteller; she’s a weaver of wit and wisdom in the digital landscape. As a key figure in News18 Engl… Read More
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