Hotels Market – Global Industry Analysis and Forecast (2023-2029)

Hotels Market was valued at USD 898.56 Billion in 2022, and it is expected to reach USD 1663.82 Billion by 2029, exhibiting a CAGR of 9.2% during the forecast period.

A hotel is a maintained facility or institution that offers guests a place to stay overnight - in return for money - on a short-term basis. The exact amenities and services supplied to visitors can vary greatly from one hotel to the next, and hotel owners often attempt to target a specific sort of consumer through their pricing model and marketing approach, or by the range of services they offer. The hotel business is the branch of the service sector that deals with visitor accommodations. To know about the Research Methodology :- Request Free Sample Report

Most definitions of the hotel sector include not only hotels, but also many other types of overnight lodging, such as hostels, motels, inns, and guest homes. It does not, however, generally include long-term or permanent kinds of lodging. The current emerging trend in hotel industry which are expected to drive the growth of the market are smart hotel technology, sustainable hotels, mobile bookings, robot staff, VR&AR, sharing economy, online travel agents, digital guest experience, bleisure travel, voice tech, drone tech, flexible check-in & check-out, AI, hassel-free payment, smart rooms, green hotels, multicultural employment, hotel designs, and business strategies.
Research Methodology
The research report relies heavily on both primary and secondary data sources. The research process entails the investigation of various factors affecting the industry, such as government policy, market environment, competitive landscape, historical data, current market trends, technological innovation, upcoming technologies, and technical progress in related industries, as well as market risks, opportunities, market barriers, and challenges.

All conceivable elements influencing the markets included in this research study have been considered, examined in depth, validated through primary research, and evaluated to provide the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalised, and the impact of inflation, economic downturns, regulatory & policy changes, and other variables is factored into the market forecast. This data is combined and added with detailed inputs and analysis, and presented in the report.
Hotels Market Dynamics
Hotel Companies Aiming on Technological Innovations to Gain Competitive Advantage & Make Maximum Profit: The concept of "business as usual" in the hotel sector is rapidly changing. While generic and so-called "cookie-cutter" services were formerly sufficient, this is no longer the case. Guests are increasingly expecting more personalised options so that hotels may fit their specific needs. Furthermore, the rise of the digital community indicates a high level of rivalry. Hotels must thus use the tools and processes at their disposal to retain loyal customers. Hotel technology is already playing an important role, and its influence is only anticipated to grow in the future years. Let us now examine eleven future and intriguing hotel technology developments in the hotel business.

On a global level, the hotels market is one of the most-highly competitive market. Key players in this market are competing on countless aspects to gain maximum profits over their competitors. In isolation, key players in the hotels market are inventing world-class pricing and revenue management strategies, which would be cost effective to their customers and would generate high revenue for themselves. They are introducing dynamic pricing techniques that are supported by innovative technicalities like, advanced machine learning and artificial intelligence (AI) tools to achieve finest effects for customers as well as hotel owners.

Exponential Growth of Travel & Tourism Industry a Key Driver: Rise in consumer purchasing power, growth of economies, digital innovation and increasing usage of internet are cumulatively fuelling the expansion of the travel and tourism industry, which is consequently driving the global hotels market. Since the past few years, travelling frequency of people around the globe has increased tremendously, whether it’s in national travelling or on international level. This trend is anticipated to grow even more in the forecast period, thus enriching the booking frequency of hotels for business and commercial purpose as well as for tourism purpose, subsequently contributing to higher occupancy rates. Globally the U.S. is a major hotels market, yet, the China hotels market is estimated to grow at a rapid pace during the forecast period.

The Indian tourism and hospitality industry has emerged as a crucial engine of growth in India's services sector. Tourism, like many other nations, is a significant source of foreign exchange in India. Foreign exchange profits increased at a CAGR of 7% from 2018 to 2022, but fell in 2022 because to the COVID-19 pandemic. Indian tourism and hospitality are expected to earn US$ 50.9 billion in visitor exports by 2029, up from US$ 28.9 billion in 2022. The Indian hotel industry, encompassing domestic, inbound, and outbound travel, was assessed at US$ 32 billion in FY20 and is expected to reach US$ 52 billion by FY27, driven by rising traveller demand and ongoing attempts by travel agencies to increase occupancy.

Digital Guest Experiences & Social Media Influence: For a long time, digital marketing has been used to reach out to travellers, but its popularity is growing. Customers are connecting with digital experiences more than ever before, and they increasingly expect to be interacted with through digital channels. Apps, in particular, are becoming increasingly popular, and there are several ways hotels may utilise apps to manage their relationships with potential and existing guests.

Since the introduction of Facebook and other social media platforms, the ability to influence travellers has grown - and will continue to grow. The amount of media that can be distributed to global audiences is immense and highly enticing. Brands can promote considerably more effectively and are continuously developing new techniques to acquire loyal customers through social media. Meanwhile, one of the most influential elements in influencing people to travel is when travellers share videos and images of their journeys with friends and family. Another advantage of social media's rising dominance is that chatbots and automated messaging make your hotel available to travellers 24 hours a day, seven days a week. Instagram in particular is the place to be for hotels and travel brands given it has one billion monthly users and 500 million users of stories each day. Meanwhile, TikTok also has one billion active users, 61% of which are female.

Metaverse in Hotel Industry: The hospitality sector has always been connected with physical visitor reception, but this has altered with the advent of new technologies and the introduction of the hospitality metaverse. The creation of metaverse hotels is one of the most significant ways in which the hospitality sector is already beginning to manifest itself within the metaverse, and there are several ways to think about this topic. Hotels, for example, can provide virtual reality tours or the chance to explore their property with an avatar during the booking process. Cutting-edge restaurants may employ virtual reality technology to offer consumers with the tools they need to thoroughly explore their menu prior to booking, including choices to see how a meal is prepared or to check out the facilities.

Aside from the hospitality metaverse prospects mentioned above, some organisations are also leveraging non-fungible tokens, or NFTs, which use blockchain technology and act as non-transferable units of data. These digital data units can be sold, exchanged, or utilised as digital assets in various ways. Marriott International was one of the first hotel companies to delve further into the notion of NFTs. In fact, the firm developed its own digital art NFTs that can be sold on the blockchain, which is widely regarded as one of the pillars of what metaverse hospitality will be in the future.

Emergence of Shared Accommodation a Key Restraining Factor: Rise in the trend of shared accommodation offered by some players in the market is expected to adversely impact growth of the hotels market. These shared accommodation service providers have relatively lower overhead costs compared to chain hotels, which enables them to provide their customers with a personalized experience at relatively lower cost. The low cost of shared accommodation services adversely impacts the revenue of hotels; however, the impact might vary across different fragments of the hotels market. Additionally, constant improvement in the quality of shared accommodation services is likely to negatively impact the market of chain hotels.
Hotels Market Segment Analysis
Based on the Hotel Type, the market is segmented into Business/ Commercial Hotels, Boutique Hotels, Resort Hotels, Casino Hotels, Transit Hotels, Bed & Breakfast Hotels, and Others. Business/ Commercial Hotels segment is expected to grow rapidly at a CAGR of xx% during the forecast period. An increasing demand of consumers for business/commercial hotels as it provides lots of benefits to the customers is the major factor that drives the growth of the Business/Commercial Hotels segment in the global market during the forecast period.

Based on the Price Level, the market is segmented into Luxury, Upscale, Midscale, and Economy. Luxury segment is expected to grow rapidly at a CAGR of xx% during the forecast period. The factors that drives the growth of the luxury segment are an increasing tourism, rising disposable income, the growing standard of living of the people, and an increase in the inclination for leisure travel. These are the key factors that drives the growth of the global market during the forecast period.

Based on the Room Capacity, the market is segmented into Small, Medium, Large, and Mega. Small room capacity segment is expected to hold the largest market shares of xx% by 2029. While exploding major metropolitan areas around the world, small hotels are marked by their compact rooms, space-saving design and lower-than-average rates. The trend of small hotels is holding largest share in North America, which makes this region as a favourable investment option for players in the hotels market. The number of millennial travellers is increasing who required hotel stays for short-period with high-quality furnishings and large number of amenities, these requirements can be fulfilled by small hotels. Developments in the hospitality industry are mainly dominated by the launches of new hotels in high-demand urban locations. Major players are focused towards expanding their services to offer guest rooms in central locations of urban cities. These are the major factor that drives the growth of the small room capacity segment in the global market during the forecast period.Based on the Business Model, the market is segmented into Individual, and Chain. Chain business model segment is expected to grow rapidly at a CAGR of xx% during the forecast period. The business of chain hotels is expected to shift from US$ 74 billion in 2021 to US$ 178.6 billion by the end of the forecast year 2029. This shift shows increasing investment by players is moving from independent hotels to chain hotels in the hotels market. Since the trend of chains/franchises is gaining status in upscale and midscale-level hotels, owners of hotel are streamlining operational procedures for managers by employing predictable and affordable tariffs for customers with the help of innovative digital devices & advanced software technology. Hotel owners are trying to create end-to-end solutions for hotel managers by empowering them as much as possible helps in generating more revenues. These are the key factor that drives the growth of the chain business model segment in the global market during the forecast period.
Hotels Market Regional Insights
North America region held the highest market share in 2022 and is expected to dominate the market with an expected revenue of USD xx billion by 2029. North America is expected to hold the largest market shares of xx% by 2029. Hence market is witnessing the high investments by branded hotel giants and independent hotels in micro hotels in the urban cities of North America, followed by Asia the Pacific and Europe regions, owing to high demand. For instance, in January 2022, a leading American multinational smart hospitality company Marriott International, declared the launch of its chain of Moxy hotels in Southeastern U.S. These are the key factors that drives the growth of North America region in the global market during the forecast period.

Europe is expected to have a significant share and the strongest growth during the forecast period. The region getting a big number of international tourists has resulted in a higher occupancy rate, which has aided market growth. According to figures given by the United Nations World Tourism Association, Europe's foreign visitor arrival in 2022 is estimated to be 710 million. Furthermore, prominent destinations in this region include Poznan, Poland, Geneva, Switzerland, and Budapest, Hungary. Braga, Portugal, and other cities that are progressively drawing visitors from all over the world help to develop traction.

Because of the growing expansion of the leading to spike, the utilisation of hotels, Asia Pacific is likely to have a large position in the hotel industry. According to Trading Economics, India's disposable income increased to USD 2,937,239.52 million in 2022 from USD 2,818,144.54 million the previous year. Furthermore, the increased number of business travellers to this region is expected to boost consumption. For example, according to statistics published in May 2022 by Travel Trends Today, India has seen an annual increase in corporate travel expenditures of 11.4 percent.
Report Scope:
The Hotels Market research report covers product classification, product Room Capacity, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, and the most recent dynamic analysis, among other things. The report discusses the global market's drivers, opportunities, and limitations. It discusses the influence of various drivers, trends, and restraints on market demand during the forecast period. The research also outlines market potential on a global scale. The research includes the production time, base distribution, technical characteristics, research and development trends, technology sources, and raw material sources of main Hotels Market firms in terms of production bases and technologies. The more precise study also contains the primary market and consumer Room Capacity sectors, significant regions and consumption, major producers, distributors, raw material suppliers, equipment providers, and their contact information, as well as an industry chain relationship analysis. This report's study also contains product specifications, manufacturing processes, cost structure, and data information organised by area, technology, and Room Capacity.
Hotels Market Scope: Inquire before buying



Hotels Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2018 to 2022
Market Size in 2022:
US $ 898.56 Bn.


Forecast Period 2023 to 2029 CAGR:
9.2%
Market Size in 2029:
US $ 1663.82 Bn.


 Segments Covered:
by Hotel Type
Business/ Commercial Hotels
Boutique Hotels
Resort Hotels
Casino Hotels
Transit Hotels
Bed & Breakfast Hotels
Others


by Price Level
Luxury
Upscale
Midscale
Economy


by Room Capacity
Small
Medium
Large
Mega


by Business Model
Individual
Chain



Hotels Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Hotels Market Key Players are:
1. Accor SA
2. Marriott International
3. Hyatt Hotels Corporation
4. Hilton Worldwide Holdings Inc.
5. InterContinental Hotels Group PLC.
6. Best Western International, Inc.
7. Choice Hotels Internationals, Inc.
8. Wyndham Destinations, Inc.
9. Radisson Hospitality A.B.
10.Indian Hotels Company Limited
11.Oravel Stays Private Limited
12.TC Limited
13.EIH Limited
14.Bharat Hotels Limited
15.Lemon Tree Hotels
16.The Leela Palaces
Frequently Asked Questions:
1] What segments are covered in Hotels Market report?
Ans. The segments covered in Hotels Market report are based on Hotel Type, Price level, Room Capacity, and Business Model.

2] Which region is expected to hold the highest share in the Global Hotels Market?
Ans. North America is expected to hold the highest share in the Global Hotels Market.

3] Who are the top key players in the Global Hotels Market?
Ans. Accor SA, Marriott International, Hyatt Hotels Corporation, Hilton Worldwide Holdings Inc., and Inter Continental Hotels Group PLC. are the top key players in the Global Hotels Market.

4] Which segment held the largest market share in the Global Hotels market by 2022?
Ans. Small Room Capacity segment held the largest market share in the Global Hotels market.

5] What is the market size of the Global Hotels market by 2029?
Ans. The market size of the Global Hotels market is US $ 1663.82 Bn. by 2029.

6] What was the market size of the Global Hotels market in 2022?
Ans. The market size of the Global Hotels market was worth US $ 898.56 Bn. in 2022.