The hotel and other travel accommodation market is expected to grow from $ 956.2 billion in 2021 at a compound annual growth rate (CAGR) of -0.5% till 2021. The decline is mainly due to the economic slowdown in countries due to the COVID-19 pandemic and measures to contain it. Then the market is expected to recover and grow at a CAGR of 10% starting in 2021 and reach $ 1227.4 billion by 2026.
The hotel and other travel accommodation market consists of the sale of short-term lodging services by entities (organizations, sole proprietorships or partnerships). The hotel and other travel accommodation market is segmented into hotels and motels, hotels with a casino, guest rooms and all other accommodations for travellers.
Covid-19 has affected all fragments of the world and the hotel industry is among the most impacted. Investors have similar views on the prospects for hotel companies, as evidenced by the underperformance of US real estate investment funds (REITs). Like many industries, the hospitality industry will also experience subtle and substantial changes in the post-pandemic era. Many American and European hotels are closed, especially luxury ones. Occupancy rates show what is happening. As of early May, occupancy rates were below 15 percent for luxury hotels and around 40 percent for budget hotels. Looking ahead, we expect budget hotels to return to pre-pandemic levels as the fastest, and luxury and mid-prices hotels to be the slowest.
Part of the reason is that budget hotels are better able to take advantage of demand segments that remain relatively strong despite travel restrictions, including truck drivers and extended-stay guests. At all hotels, revenue is based on average daily rate, number of rooms and occupancy, as well as food and drink where applicable. For homeowners considering going out of business, variable and semi-fixed costs are factors, as fixed costs don't change no matter what. Better demand and lower operating costs suggest that budget hotels will recover faster. It would be consistent with what we have seen in past crises. But there are likely to be pockets of resilience and recovery in the market. Hotels that rely on revenue from meetings, incentives, conferences and events (MICE) could face large deficits. Owners will need to carefully monitor reserves to distinguish between single peaks of growth and a sustained recovery.
Travel agencies and hotels are launching new offers to boost their sales. From special bubble vacations that promise personalized services from start to finish to 72-hour flash sales that offer free nights and up to 40% off select five-star hotels, chains and travel agents implement other promotions during the holidays getting closer.
As the travel industry recovers during the Christmas season following the pandemic, Leisure Hotels Group, a leading chain of experimental resorts with a presence in scenic destinations in North India and Goa, announced the opening of The Hideaway Bedzzz in Rishikesh, first property in this alternative accommodation segment.
Hotel and Other Travel Accommodation Market Trends:
Hotels use technologies that transform the guest experience. Some technologies lead to big improvements and savings for hotels and other lodging markets. The most significant trend in the lodging industry is the use of near field communication technology (NFC), infrared technologies and robots. NFC gives users the ability to exchange data between devices, making mobile payments an instant and secure process. Infrared sensors are used in hotels to address guest complaints about service interruptions. Hotels also use robots to provide room amenities and for other functional purposes. Hoteliers invest in systems and technologies capable of automating processes, reducing costs and personalizing the guest experience.
Hotel and Other Travel Accommodation Market Drivers:
Technological advances allow companies to provide personalized services by obtaining information from customers. Businesses offer personalized offers and promotions by collecting vital information about consumer likes, dislikes, and preferences through the use of social media and technologies such as mobile software applications that track customer behavior. Hotels now provide personalized menus, lighting, and other services on the basis of customer information present from past visits or information collected on social media. The Four Seasons Hotel has spent $ 18 million to revamp its website, which will offer personalized dynamic web pages to potential guests.
Hotel and Other Travel Accommodation Market Restraints:
The coronavirus pandemic acted as a massive strain on the market for hotels and other travel accommodations in 2020, with governments globally imposing restrictions on domestic and international travel that limit the need for the services offered by these establishments. Measures taken by national governments to contain transmission have led to a decrease in economic activity, with countries in a state of lockdown and the outbreak is expected to continue to negatively affect companies during 2020 and into 2021.
Opportunities in the Hotel and Other Travel Accommodation Market:
The increasing use of social media and access to the media is having a positive impact on the tourism and hospitality industries. With tourists sharing their travel information, photos and videos on social media platforms, people are becoming more and more aware of the tourist destinations and leisure experiences that the different countries of the world offer. According to a WeSwap survey, 37% of millennials were inspired by social media content, and 61% of travellers want to share their experiences online. In addition, social media plays an important role in helping countries promote tourism by making people aware of their culture. This growing awareness is reflected in large numbers of people traveling abroad and is foreseen to drive growth in the hospitality and other tourist accommodation sectors during the outlook period.
Hotel and Other Travel Accommodation Market Segmentation:
By type:
By mode of booking:
By application:
By price point:
By ownership:
Hotel and Other Travel Accommodation Market Regional Analysis:
North America
Europe
Asia Pacific
Latin America
Middle East & Africa
Asia-Pacific was the biggest region in the worldwide industry for hotels and other travel accommodation, accounting for 36% of the industry in 2021. North America was the second largest region with 27% of the global market. Africa was the smallest region in the world that is estimated to offer promising opportunities in the coming years.
Hotel and Other Travel Accommodation Market Key Players:
Major companies in the global market include Marriott International, Hilton Worldwide, Wyndham Corporation, Hyatt Hotels Corporation, Four Seasons Hotels & Resorts and others.
1. Introduction
1.1 Market Definition
1.2 Scope of the report
1.3 Study Assumptions
1.4 Base Currency, Base Year and Forecast Periods
2. Research Methodology
2.1 Analysis Design
2.2 Research Phases
2.2.1 Secondary Research
2.2.2 Primary Research
2.2.3 Data Modelling
2.2.4 Expert Validation
2.3 Study Timeline
3. Report Overview
3.1 Executive Summary
3.2 Key Inferencees
4. Market Dynamics
4.1 Impact Analysis
4.1.1 Drivers
4.1.2 Restaints
4.1.3 Opportunities
4.2 Regulatory Environment
4.3 Technology Timeline & Recent Trends
5. Competitor Benchmarking Analysis
5.1 Key Player Benchmarking
5.1.1 Market share analysis
5.1.2 Products/Service
5.1.3 Regional Presence
5.2 Mergers & Acquistion Landscape
5.3 Joint Ventures & Collaborations
6. Market Segmentation
6.1 Hotel and Other Travel Accommodation Market, By Type
6.1.1 Hotel and Motel
6.1.2 Casino Hotels
6.1.3 Bed and Breakfast Accommodations
6.1.4 All Other Traveller Accommodations
6.1.5 Market Size Estimations & Forecasts (2021-2026)
6.1.6 Y-o-Y Growth Rate Analysis
6.1.7 Market Attractiveness Index
6.2 Hotel and Other Travel Accommodation Market, By Application
6.2.1 Tourist Accommodation (Leisure)
6.2.2 Official Business (Professional)
6.2.3 Market Size Estimations & Forecasts (2021-2026)
6.2.4 Y-o-Y Growth Rate Analysis
6.2.5 Market Attractiveness Index
6.3 Hotel and Other Travel Accommodation Market, By Mode of Booking
6.3.1 Online Bookings
6.3.2 Direct Bookings
6.3.3 Market Size Estimations & Forecasts (2021-2026)
6.3.4 Y-o-Y Growth Rate Analysis
6.3.5 Market Attractiveness Index
6.4 Hotel and Other Travel Accommodation Market, By Price Point
6.4.1 Economy
6.4.2 Mid-Range
6.4.3 Luxury
6.4.4 Market Size Estimations & Forecasts (2021-2026)
6.4.5 Y-o-Y Growth Rate Analysis
6.4.6 Market Attractiveness Index
6.5 Hotel and Other Travel Accommodation Market, By Ownership
6.5.1 Chained
6.5.2 Standalone
6.5.3 Market Size Estimations & Forecasts (2021-2026)
6.5.4 Y-o-Y Growth Rate Analysis
6.5.5 Market Attractiveness Index
7. Geographical Landscape
7.1 Global Identity Governance and Administration Market, by Region
7.2 North America - Market Analysis (2018 - 2024)
7.2.1 By Country
7.2.1.1 USA
7.2.1.2 Canada
7.2.2 By Type
7.2.3 By Application
7.2.4 By Mode of Booking
7.2.5 By Price Point
7.2.6 By Ownership
7.3 Europe
7.3.1 By Country
7.3.1.1 UK
7.3.1.2 France
7.3.1.3 Germany
7.3.1.4 Spain
7.3.1.5 Italy
7.3.1.6 Rest of Europe
7.3.2 By Type
7.3.3 By Application
7.3.4 By Mode of Booking
7.3.5 By Price Point
7.3.6 By Ownership
7.4 Asia Pacific
7.4.1 By Country
7.4.1.1 China
7.4.1.2 India
7.4.1.3 Japan
7.4.1.4 South Korea
7.4.1.5 South East Asia
7.4.1.6 Australia & NZ
7.4.1.7 Rest of Asia-Pacific
7.4.2 By Type
7.4.3 By Application
7.4.4 By Mode of Booking
7.4.5 By Price Point
7.4.6 By Ownership
7.5 Latin America
7.5.1 By Country
7.5.1.1 Brazil
7.5.1.2 Argentina
7.5.1.3 Mexico
7.5.1.4 Rest of Latin America
7.5.2 By Type
7.5.3 By Application
7.5.4 By Mode of Booking
7.5.5 By Price Point
7.5.6 By Ownership
7.6 Middle East and Africa
7.6.1 By Country
7.6.1.1 Middle East
7.6.1.2 Africa
7.6.2 By Type
7.6.3 By Application
7.6.4 By Mode of Booking
7.6.5 By Price Point
7.6.6 By Ownership
8. Key Player Analysis
8.1 Marriott International
8.1.1 Business Description
8.1.2 Products/Service
8.1.3 Financials
8.1.4 SWOT Analysis
8.1.5 Recent Developments
8.1.6 Analyst Overview
8.2 Hilton Worldwide
8.3 Wyndham Corporation
8.4 Hyatt Hotels Corporation
8.5 Four Seasons Hotels & Resorts
9. Market Outlook & Investment Opportunities
10. Appendix
List of Tables
List of Figures
