Smaller Indian towns like Tezpur ( Assam ), Agartala (Tripura), and Duburi, Jharsaguda and Angul (Orissa) are emerging as the next stops for some of the largest hotel chains, reports The Financial Express.

Keen to tap the mid-market segment of the hospitality market, leading companies like the Indian Hotels Company Ltd (IHCL) and East India Hotels (EIH), owners of the Taj and Oberoi groups respectively, are focusing their attention on these places, where there's a large and growing demand for organised budget accommodation.

Says Pioneer Intermediaries research analyst Amol Rao, "Domestic business travellers are boosting occupancies not only in metros but also in Tier II and Tier III cities. This has a cascading effect on four- and three-star hotels as well. The hospitality market remains buoyant as domestic travel is picking up."

Sarovar Hotels Managing Director Anil Madhok concurs: "The industry seems to have noticed the vast potential offered by the domestic tourist. The industry understands that travellers are looking for more options at reasonable prices."

For the complete story, go to http://www.financialexpress.com