The Global Hotel and Other Travel Accommodation Market are expected to grow from US$ 860.09 billion in 2023 to reach a valuation of US$ 1102.17 billion by 2029 at a compound annual growth rate (CAGR) of 4.22% between 2024-2029.
Market Overview:
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 an 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 sustained recovery.
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.
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.
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.
Market Opportunities:
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 travelers 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.
Market Recent Developments
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 – 2029 |
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Base Year |
2023 |
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Forecast Period |
2024 - 2029 |
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CAGR |
4.22% |
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Segments Covered |
By Type, Mode Of Booking, Application, Price Point, OwnerShip, and Region. |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
Marriott International, Hilton Worldwide, Wyndham Corporation, Hyatt Hotels Corporation, Four Seasons Hotels & Resorts, and Others. |
Market Segmentation:
Asia-Pacific was the biggest region in the worldwide industry for hotels and other travel accommodations, 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.
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% for budget hotels. Looking ahead, we expect budget hotels to return to pre-pandemic levels as the fastest, and luxury and mid-priced hotels to be the slowest.
Market Key Players:
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