Travel Accommodation Market Expected to Reach $1,974.30 Billion, Globally, by 2031 at 11.3% CAGR—Allied Market Research
Allied Analytics LLP
8 min read
Allied Analytics LLP
The travel accommodation market is driven by boom in global tourism, growth in corporate travel industry, rise in consumer spending and surge in demand for authentic cultural experience in the tourism industry. Moreover, the rapid advancement in the tourism industry has led to change in dynamics and made it easier for both customers and organizers to organize the market smoothly.
Wilmington, Delaware, Feb. 27, 2024 (GLOBE NEWSWIRE) -- Allied Market Research published a report, titled “Travel Accommodation Market by Type (Hotel, Hostel, Resort, Vacation Rental, and Others), Application (Leisure, Professional, and Others), and Price Point (Economy, Mid-Range, and Luxury), and Mode Of Booking (Online Travel Agency, Hotel Website, and Others) : Global Opportunity Analysis and Industry Forecast, 2023–2032 “. According to the report, the global travel accommodation market was valued at $632.80 billion in 2021, and is projected to reach $1,974.30 billion by 2031, growing at a CAGR of 11.3% from 2022 to 2031.
The growth of the travel accommodation industry is majorly driven by many factors. The short-term rentals and vacation homes, facilitated by platforms such as Airbnb and Vrbo have gained popularity as travelers sought personalized and local experiences. Sustainability has become a key focus, with a rising demand for eco-friendly accommodations and practices. The COVID-19 pandemic accelerated the adoption of contactless services, such as digital check-ins and mobile payments, while technology integration, including AI-driven personalized experiences, became prevalent. The concept of "workation" has emerged combining remote work with leisure travel, and "bleisure" travel has witnessed an increase as business travelers extended trips for leisure purposes. Health and safety measures have become paramount, with accommodation providers implementing enhanced cleaning protocols and transparent communication.
Report coverage & details:
Report Coverage
Details
Forecast Period
2022–2031
Base Year
2021
Market Size in 2022
$632.80 billion
Market Size in 2032
$1,974.30 billion
CAGR
11.3%
No. of Pages in Report
282
Segments covered
Type, Application, Price Point, Mode of Booking, and Region.
Drivers
Boom in global tourism Significant growth in corporate travel industry Shift in consumer spending from product to experience Surge in demand for authentic cultural experience in the tourism industry
Opportunities
Surge in demand for authentic cultural experience in the tourism industry Rise in accommodations for solo travelers Surge in eco-friendly accommodations
Restraints
Rise in fraudulence Fluctuation in fortunes for destinations Inadequate support infrastructure challenging market expansion
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The apparel segment to maintain its leadership status throughout the forecast period By type, the hotel segment held the highest market share in 2022, accounting for more than three-fifths of the travel accommodation market revenue and is estimated to maintain its leadership status throughout the forecast period. The well-established infrastructure and global presence of hotels provide a wide range of accommodations, catering to diverse traveler preferences and budgets. Their appeal is further heightened by amenities tailored for business and corporate travelers, including conference facilities and meeting rooms. Moreover, chain hotels, known for maintaining consistent quality standards, have built strong global brand recognition, instilling trust among consumers. The adaptability to online booking channels and the implementation of loyalty programs also contribute to hotels' market dominance. In addition, the sector's adherence to stringent regulatory compliance and safety standards enhances the sense of security for guests.
The leisure segment to maintain its leadership status throughout the forecast period By application, the leisure segment held the highest market share in 2022, accounting for more than three-fifths of the travel accommodation market revenue and is estimated to maintain its leadership status throughout the forecast period. The increased volume of individuals and families engaging in recreational travel contributes significantly to this dominance. The segment's appeal is broadened by the availability of accommodations spanning various budgets and preferences, with vacation rentals and short-term stays playing a pivotal role in the market. Seasonal travel peaks, especially during holidays and school breaks, contribute to increased demand. Moreover, the rising trend of cultural and experiential tourism, coupled with a preference for flexible booking options, further solidifies the leisure segment's market share. In addition, accommodation providers actively target leisure travelers through marketing strategies that emphasize unique experiences, contributing to the sector's continual growth and influence.
The mid-range segment to maintain its leadership status throughout the forecast period By price-point, the mid-range segment held the highest market share in 2022, accounting for more than two-fifths of the travel accommodation market revenue and is estimated to maintain its leadership status throughout the forecast period. The mid-range segment has a substantial role in the travel accommodation market, appealing to a broad spectrum of travelers for various reasons. Positioned between budget-friendly options and luxury establishments, mid-range accommodations strike a balance by offering affordability without compromising on quality and amenities. Moreover, this balance makes it attractive to a diverse audience, including both leisure and business travelers seeking value for money. The mid-range sector is often characterized by properties that provide comfortable stays with amenities such as Wi-Fi and business facilities, making them particularly appealing to corporate travelers. Furthermore, the adaptability of mid-range accommodations to market trends, coupled with the global presence of well-known mid-range brands, contributes to their widespread popularity.
The direct-booking segment to maintain its leadership status throughout the forecast period By mode of booking, the direct-booking segment held the highest market share in 2022, accounting for more than two-thirds of the travel accommodation market revenue and is estimated to maintain its leadership status throughout the forecast period. The direct booking has been appealing to travelers and hotels for several reasons. Hotels often offer a best price guarantee for direct bookings, assuring customers of competitive rates. Exclusive loyalty programs and benefits, including discounts and room upgrades, incentivize guests to book directly and foster brand loyalty. Booking directly allows hotels to have greater control over the entire booking experience, providing a more personalized and seamless service. By avoiding third-party fees associated with online travel agencies (OTAs), both hotels and guests can benefit from cost savings. Moreover, direct communication between guests and hotels enables special requests and customization, enhancing the overall guest experience.
The Europe segment to maintain its leadership status throughout the forecast period By region, Europe held the highest market share in 2022, accounting for more than one-third of the travel accommodation market revenue and is estimated to maintain its leadership status throughout the forecast period. Europe has traditionally held a significant position in the global travel accommodation market due to a combination of factors that make the continent a diverse and attractive destination for travelers worldwide. Renowned for its rich cultural heritage, historical sites, and varied landscapes, Europe offers a wide range of experiences, drawing a broad spectrum of tourists. The continent boasts a well-developed tourism infrastructure with accommodations ranging from hotels to vacation rentals, catering to diverse preferences and budgets. High volumes of international tourists visit Europe, attracted by the efficient transportation networks, picturesque destinations, and a blend of business and leisure opportunities. The presence of luxury and boutique accommodations further enhances Europe's appeal. The government support and favorable regulations in some European countries contribute to a positive environment for the travel accommodation sector.
Leading Market Players: -
Marriott International
Hyatt Hotels Corporation
Wyndham Destinations
Hilton Worldwide Holdings Inc.
Accor Hotels Group
Radisson Hotel Group
Airbnb Inc.
A&O Hotels and Hostels GmbH
Red Lion Hotels Corporation
Oyo Rooms
The report analyzes government regulations, policies, and patents to provide information on the current market trends and suggests future growth opportunities globally. Furthermore, the study highlights Porter’s five forces analysis to determine the factors affecting market growth.
Country Reports We Have on Travel Accomodation Industry:
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