Research Support Specialist, USA
The global hotels market size is estimated to reach USD 591.3 billion by 2028, registering a CAGR of 16.7% over the forecast period, according to a new report by Million Insights. The global market growth is significantly driven by the rising spending on travel and tourism, increased affordability of air tickets, and various government initiatives boosting the tourism sector. The growing middle-class population and increasing interest of these consumers in travel are also expected to fuel the market growth over the forecast period. Moreover, as a result of the COVID-19 pandemic, consumers are likely to seek out a getaway from routine life, driving the market. The market is mainly restrained by the competition from vacation rentals and the rising environmental concerns due to the increased tourist population in certain locations.
The outbreak of the COVID-19 pandemic negatively impacted the global hotel industry. As a precaution, to lower the total cases, many governments restricted and halted the air travels According to the United Nation’s World Tourism Organization, as a result of the COVID-19 pandemic, international tourist arrivals fell by 60% to 80%, negatively impacting the hotel industry from 2019 to 2020. However, with resumed air travel, the market is expected to recover in the next few years. The upscale type segment dominated the global market, in terms of revenue, in 2020. Top players in the market provide a different portfolio of rooms, which is concentrated by the upscale type. Moreover, high consumer preference for upscale rooms due to high-quality services and amenities provided supported the segment growth.
However, the midscale segment is estimated to register the fastest CAGR over the forecast period. many hotels are strategically entering into a midscale portfolio. The OTA distribution channel segment is estimated to register the fastest CAGR over the forecast period. A surge in smartphone usage and penetration of internet services are contributing to the growth of the OTA segment. For instance, Booking Holdings Inc., the parent company of Booking.com B.V., recorded an 11.42% growth in room bookings through its online channel from 2018 to 2019. Also, a growing share of millennials and Gen Z in the travel industry, who are more dependent on the internet is driving the segment growth.
Asia Pacific is anticipated to witness the fastest growth rate over the forecast period due to the rapidly flourishing hotel industry as a result of various initiatives by local governments boosting tourism and the expansion of key players in the region. For instance, on August 16th, 2019, Hilton Worldwide Holdings Inc. announced that it has signed 120 new hotels in Asia Pacific, bringing a total of 845 hotels under construction in the region. In September 2021, IHG Group plc announced its expansion plans in Asia Pacific with 31 hotels scheduled to open in 2022.
The report “Hotels Market Size, Share & Trends Analysis Report By Type (Luxury, Upscale, Midscale, Economy), By Distribution Channel (CRS/Voice, OTA, GDS), By Region (Asia Pacific, EU, North America), And Segment Forecasts, 2021 - 2028” is available now to Million Insights.
Million Insights has segmented the global hotels market on the basis of type, distribution channel, and region:
List of Key Players of Hotels Market