The State of the Hospitality Market

The State of the Hospitality Market Size (2023 - 2028) 

The State of the Hospitality Market was valued at USD 4,107.60 billion in 2022 and is expected to reach USD 9,950 billion in 2028 with a CAGR of 16.13% during the forecast period 2023 to 2028.

The hospitality sector is defined as an industry that tries to provide consumers with a method to participate in leisure activities, such as staying in a hotel or dining in a restaurant. It encompasses multiple industries, the most important of which are accommodation and food services. The state of hospitality market comprises organizations and businesses that sell accommodation and catering services, to consumers and prepare snacks, meals, and drinks for immediate consumption. Since accommodation and catering, both activities are frequently merged in the same place, the market includes both lodging and catering.

Market Drivers:

Although COVID-19 has caused a sharp decline in the state of the hospitality market. As travel restrictions ease, the hospitality industry is expected to increase in the second half of 2021. Many people around the world are seeing the return of international travel in the near term. Key drivers in this market include falling ticket prices, rising competition from airlines, and a surge in airline companies. The growth of business or business travel due to strong economic growth in developing countries and the growth of experimental travel remains a major driver of tourism. Hotels use technologies that transform the guest experience. Consumers, in general, spend more money on meals, travel, and entertainment, and less money on their physical goods.

Market Restraints:

With growing health concerns, many people around the world are turning to healthier diets. Consumers are now more concerned with how food is raised and prepared and are willing to seek and pay a little more for something they consider healthy. Terrorism has affected tourists' perceptions of travel and the risks associated with it, negatively affecting the hospitality industry.

The COVID-19 health crisis has directly affected the hospitality industry. Limited domestic and international travel due to fear and restrictions due to COVID-19 has resulted in slower growth in the global hotel industry. Consumers are worried about the uncertain future of the declining hospitality industry. The state of hospitality market is the ninth fastest declining global market. The trillion-dollar industry is expected to be halved over the next few years. Domestic tourism is heavily focused, but domestic guests are unlikely to fuel the industry as a whole. Individual countries mainly depend on international arrivals. The state of hospitality market is facing an unprecedented crisis and may not recover in the coming years. Large chains could be forced to lay off large numbers of employees, creating an exodus of workers from the state of the hospitality market.

THE STATE OF THE HOSPITALITY MARKET REPORT COVERAGE:

Market Segmentation:

The State of the Hospitality Market - By Type:

• Accommodation
• Food & beverage
• Leisure
• Travel
• Tourism sectors.

The Food and Beverage sector is the largest hospitality sector, it is made up of establishments that deliver food, snacks, and drinks for immediate consumption, inside or outside the premises. The accommodation sector covers an extremely diverse spectrum of properties and consists of luxury palaces, boutique hotels, bed and breakfasts, campsites, inns, and more. The accommodation industry is expected to be the fastest-growing sector in the state of the hospitality market.

The leisure sector consists of recreational establishments focused on the entertainment and relaxation of customers. Properties like cinemas or amusement parks fall into this category. The travel and tourism industry includes modes of transportation to move travelers from one place to another. Buses, Airlines, trains, and Cruise ships fall into this category. While all sectors are interconnected and reliant on one another, the hospitality industry as a whole is fast evolving due to new technologies and shifting consumer sentiments.

The State of the Hospitality - By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

In 2020, Asia-Pacific was the largest region in the state of the hospitality market, accounting for 45 percent of the state hospitality market.

North America was the second-largest region with 25% of the state of the hospitality market.

The Latin America region is expected to grow at an average pace as businesses recover from the COVID-19 pandemic with an overall recovery by 2023.

Europe was the highest region with revenue per room and occupancy rate and is expected to grow at a very high rate as COVID-19 restrictions are lifted and international travel resumes.

The Middle East and Africa was the smallest region in the state of the hospitality market. The Middle East and Africa region are expected to be the fastest-growing region in this market, followed by Latin America.

Impact of COVID-19 on the state of the hospitality market:

The coronavirus disease (COVID-19) outbreak acted as a massive restriction on the hospitality market in 2020 as governments globally imposed restrictions on domestic and international travel limiting the need for services offered by these establishments. International tourist arrivals fell by 93% in 2020 compared to 2019 and by 65% ​​in the first half of 2020. In total, 2020 is recognized as the worst year in the history of tourism with 1 billion international arrivals and $ 1 trillion in international tourism income. Measures taken by national governments to contain transmission have led to a decline in economic activity, with countries entering a state of lockdown, and the epidemic is expected to continue to negatively impact businesses throughout 2020 and until 2021. However, because this is a "black swan" incident unrelated to weakness persistent to fundamental market or global economic difficulties, the state of the hospitality market is likely to recover during the forecast period.

Leading company:

Marriott International is the world’s biggest hotel company with a revenue of 10.6 billion USD and a market cap of 49.4 billion USD.

The State of the Hospitality Market Key players:

1. Compass Group Plc
2. Subway
3. Marriott International
4. Hilton Worldwide Holdings Inc.
5. Intercontinental Exchange Inc.
6. Starbucks Coffee
7. Sodexo
8. Aramark Corporation
9. McDonald's
10. Chick-fil-A
11. Elior Group

Market Recent Developments:

• In 2021, Marriott International has signed an agreement with International Himalaya Hospitality and Hotel Pvt Ltd to launch the company's Moxy Hotels brand in Kathmandu. With 108 sleek and stylish rooms, Moxy Kathmandu is set to open in 2025.
• In 2020, Sodexo acquired Fooditude, the London-based office catering service provider, taking a controlling stake.