Tourism and Hospitality Market

Global Tourism and Hospitality Market Size (2024 to 2029):

The Global Tourism and Hospitality Market was worth US$ 8207 million in 2023 and is anticipated to reach a valuation of US$ 9800 million by 2029 and it is predicted to register a CAGR of 3% during the forecast period 2024-2029.

Market Overview:

The tourism and Hospitality Market is the largest industry in the world, contributing 10% of the world’s GDP. Globalization has made tourism a popular leisure activity around the world. tourism has become popular around the world as a leisure activity with easy travelling facilities. The tourism and hospitality market has grown into a multi-billion-dollar industry. The tourism and hospitality sector plays a vital role in the economy of many developing countries like the United Arab Emirates, Nepal, Thailand, Nepal, Maldives, etc.

The growth of the global tourism and hospitality market is due to stable economic growth followed by an increase in per capita income. stable economic growth is expected to drive the global tourism and hospitality market. With improved revenue capacity and the growth of emerging markets, in the tourism and hotel industry, the potential, and scope of the global tourism and hospitality market are expected to increase. Emerging economies now represent a larger market share than developed economies. Government agencies and organizations are promoting tourism to attract various tourists from around the world. These initiatives lead to the growth of the global tourism and hospitality market.

Market Drivers:

The increase in income is driving the growth of the global tourism and hospitality market. Traveling has become increasingly common all over the world. Hence, spending on leisure travel and business travel has seen a yearly increase. This increase in travel has also allowed the number of hotel guests and in turn the hospitality markets to grow. The growth of the international Tourism market also helps other industries to grow such as the airline industry. Key drivers in this market include falling ticket prices, as ticket prices are falling thanks to several factors, from lower fuel prices, competition from airlines, and a surge in airline companies. low cost. The growth of business travel due to strong economic growth in developing countries is a major driver of the tourism and hospitality market.

Market Restraints:

The COVID-19 health crisis has directly affected the tourism and hospitality markets. Limited domestic and international travel due to fear and restrictions due to Covid-19 has resulted in slower growth in the global tourism and hospitality industry. Domestic tourism is being heavily focused on, but domestic guests are unlikely to fuel the industry as a whole. Individual countries mainly depend on international arrivals. The global tourism and 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 global hospitality industry. Terrorism has affected tourists' perceptions of travel and the risks associated with it, negatively affecting the global tourism and hospitality industry. The high-security risks for tourists traveling to underdeveloped and developing countries pose an immense challenge to the global international tourism market.

TOURISM AND HOSPITALITY MARKET REPORT COVERAGE:

Market Segmentation

Tourism and Hospitality Market - By Type:

• Domestic Tourism
• International Tourism

The international tourism market is expected to grow at a high rate due to its popularity mainly due to people around the world having more money in their pocket, as well as the impact of greater globalization.

Tourism and Hospitality Market - By Services Provided:

• Accommodation
• Food & Beverages
• Recreation & Entertainment
• Transportation
• Travel

The Food & Beverages segment is the largest segment in the global international tourism market, it is made up of establishments that deliver food, snacks, and drinks for immediate consumption, inside or outside the premises Facilities.  The accommodation segment is expected to be the fastest-growing segment in the global international tourism market. The accommodation sector covers an extremely diverse spectrum of properties and consists of luxury palaces, boutique hotels, bed and breakfasts, campsites, inns, and other establishments.

Tourism and Hospitality Market - By Travel Model:

• Business Travel
• Leisure Travel
• Other Activities

Business Travel is the fastest-growing market. Nowadays, there is a rise in ‘Bleisure’ travel which is the mixing of business with recreational interests on business trips. Industrial analysis shows that almost 49% of people have extended business trips to a leisure trip or planned a business travel break to save on holiday expenses.

Market Regional Analysis:

• Asia-pacific
• North America
• Europe
• Latin America
• Middle East & Africa

The North American region is anticipated to witness the most significant market growth at an annual rate of 4.2%. Europe is the largest market for the global travel and tourism industry. The Asia-Pacific region is expected to grow at an annual rate of 5%. The Latin American region is expected to grow at a fast pace due to the rise of cruise tourism in the region. The Middle East & African regions are expected to have tremendous growth due to new developments in the region.

Impact of COVID-19 on the Tourism and Hospitality Market:

Due to the COVID-19 pandemic, there was an unprecedented global health, social and economic crisis. tourism is among the most affected sectors with a massive fall in international demand amid global travel restrictions including many borders fully closed, to contain the virus. The global revenue dropped by 17 percent with an estimated loss of 2.4 trillion $. With the launch of vaccines, the industry is expected to recover.

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. However, the fear of Covid-19 among tourists is slowing market growth. A full recovery is expected in 2023. The recent growth is due to countries easing travel restrictions and coming out of lockdowns and businesses resuming operations.

Leading company:

The TUI Group is leading the global tourism group with over 1,600 travel agencies, leading online portals, 5 airlines, over 400 hotels, 15 cruise liners in major tourist spots around the world.

Tourism and Hospitality Market Key players:

1. TUI Group
2. TCS World Travel
3. Expedia Group
4. American Express Global Business Travel
5. Gray & Co
6. Booking Holdings
7. Air BnB
8. Trip.com Group Ltd.
9. TripAdvisor, Inc.
10. Royal Holdings Co., Ltd.
11. Marriott International
12. Hilton Worldwide Holdings Inc.
13. Intercontinental Exchange Inc.

Market Recent Developments:

• In 2021, TUI sold the RIU Group its 49% ownership in the RIU Hotels & Resorts brand. The Riu family already owns 51% of these properties and is currently the sole owner of them.
• In 2021, Tripadvisor announced the launch of Tripadvisor Plus, a subscription service priced at 99$ a year this service will provide customers in the U.S. access to savings, discounts, and other perks.
• In 2021, International Himalaya Hospitality & Hotel Pvt Ltd reached a deal with Marriott International to introduce the company's Moxy Hotels brand in Kathmandu. Moxy Kathmandu, with 108 elegant and contemporary rooms, is planned to debut in 2025.