Non-Residential Accommodation Services Market

Non-Residential Accommodation Services Market Size (2023 - 2028):

The Global Non-Residential Accommodation Services Market is expected to grow from US$ 856.87 billion in 2022 at a compound annual growth rate (CAGR) of 19.90%. The growth is mainly due to companies reorganizing their operations and recovering from the impact of COVID-19, which previously generated restrictive containment measures involving social distancing, remote work, and business closures that resulted in operational challenges. The market is expected to reach US$ 2,524.53 billion in 2028. The non-residential housing market offers short-term housing or lodging for travelers, vacationers, and others. In the context of the trade war between China and the United States, the volatility and uncertainty of the world economy will have a great influence on this market.

Market Trends:

The market for non-residential accommodation services offers a forward-looking perspective on critical factors such as growth drivers and constraints affecting industry dynamics. It also offers various risk prevention plans to help industry players seize opportunities with high-profit potential. Wellness travel is on the hype in the accommodation industry. That includes classic yoga retreats and spa experiences, a detox menu, meditation sessions, extreme fitness boot camps, hot springs, and hot springs, cycling vacations, and more. More and more travelers are seeking holistic vacation experiences and are adding amenities to their properties that include yoga classes, expanded gyms, and spas. For example, major hotel and resort brands such as Starwood Hotels and InterContinental Hotels Group have launched their own hotel brands dedicated to wellness.

Market Drivers:

The increasing use of social media and access to the media is having a positive impact on the tourism and non-residential accommodation 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. 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 estimated to drive the growth of the non-residential accommodation industry during the foreseen period.

Market Opportunities:

Hotels are using technologies to improve the guest experience and reduce operating costs. The most important trends include 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. Hotel operators are investing in systems and technologies that can automate processes and personalize the guest experience.

NON-RESIDENTIAL ACCOMMODATION SERVICES MARKET REPORT COVERAGE:

Market Segmentation:

Non-Residential Accommodation Services Market - By Entities:

• Organizations

• Sole Traders

• Partnerships

Market Regional Analysis:

• North America 

• Europe 

• Asia Pacific

• Latin America 

• Middle East & Africa 

North America was the largest region in the market for non-residential accommodation services in 2021, accounting for about 35% of the market share. Asia-Pacific was the second largest region with around 25% market share. Africa was the smallest region with around a 3% market share. European nations also contribute significantly to this market with the presence of several tourist attractions like Rome, Paris, Venice, Amsterdam, and many more. Middle Eastern nations like Dubai, Turkey, etc., are also significant growth promoters of this industry.

Impact of COVID-19 on the Non-Residential Accommodation Services Market:

The outbreak of the coronavirus disease (COVID-19) acted as a massive strain on the non-residential accommodation services market in 2020, as governments globally impose restrictions on domestic and international travel that limit the need for services offered by these establishments. COVID-19 is an infectious disease with flu-like symptoms, including fever, cough, and shortness of breath. The virus was first identified in 2019 in Wuhan, Hubei province in the People's Republic of China, and has spread throughout the world, including Western Europe, North America, and Asia.

Measures taken by national governments to contain transmission have led to a decline in economic activity, with countries in a state of lockdown, and the outbreak is foreseen to continue to negatively affect companies throughout 2020 and into 2021. The non-residential lodging services market is expected to recover from the shock during the outlook period, as this is a "black swan" event that is not linked to fundamental weaknesses in the market or the worldwide economy.

Market Key Players:

Major companies in the market include

1. Starwood Hotels
2. Marriott International
3. Hilton Worldwide
4. InterContinental Hotels Group
5. Hyatt Hotels Corporation
6. Four Seasons Hotels & Resorts

Market Recent Developments:

• Welcomhotel has introduced its first area in Himachal Pradesh, Welcomhotel Shimla, parent hotel chain ITC Hotels. The Welcomhotel Shimla has 47 rooms and suites overlooking the Mashobra Valley.

• Booking.com launches a fund for sustainable travel startups. The startups to be funded will be selected as part of the travel platform acceleration program. Participants offering innovative products and services, including accommodation, will have the opportunity to win grants from the company's Rs 18.5 million funds.