The global Hotel and Resorts market size in 2023 is $1.5tr (measured by revenue), expected to experience a growth of 12.3%.
The global Hotels and Resorts annualized market growth per year on average between 2018- 2023 is 1.1%.
The global hotel and other travel accommodation market is expected to reach $1052.84 billion in 2025 at a CAGR of 7% and $1,453.44 billion by 2031 at a CAGR of 8.5%.
In 2023, the hospitality industry contributes $4.7 trillion to the global economy every year.
b.) Region-wise performance:
Asia Pacific was reported as the largest region in the hotel and other travel accommodation market, accounting for 35.8% of the global market in 2021, followed by North America, Western Europe, and other regions.
In the future, the fastest growing regions in the hotel and other travel accommodation market globally would be Africa and South America, where growth will be at CAGRs of 20.1% and 16.0% respectively from 2021-2026.
Las Vegas, Nevada is one of the top cities worldwide with the most hotel rooms. It has over 150,000 hotel rooms.
First World Hotel Malaysia is the biggest hotel globally with 7,351 rooms.
c.) Leading hotel companies worldwide:
The largest hotel company in the world, in terms of the number of properties, is the global chain, Wyndham Hotels & Resorts, with over 9,200 hotels as of mid-2020. Marriott International comes next on the list, with over 7,600 properties, followed by Choice Hotels International with over 7100 hotels.
While Wyndham has the most properties, Marriott International has the largest portfolio of hotel rooms/ guest rooms. Marriott had about 1.4 million guestrooms in 2021, over 400,000 more than runner-up Hilton Worldwide in that year.
The most valuable travel and tourism brand in the world, according to Brand Finance’s 2021 list is Booking.com. It has a brand value of $8.9B.
d.) Hotel occupancy statistics and room rates:
The global average daily rates (ADRs) were up 3.4% annually by the end of Q1 in 2023. Occupancy increased by 17.6% since the last year.
Global revenue per available room (RevPAR) is 21.6% ahead of 2022.
This segment includes hotel and motel, casino hotels, bed and breakfast accommodations, and all other traveler accommodation.
The hotel and motel market accounted for 68.9% of the total market in 2021, making it the largest segment of the hotel and other travel accommodation market by type.
The hotel and motel market is further forecasted to be the fastest-growing segment in the hotel and other travel accommodation market, growing at a CAGR of 13.6% between 2021-26.
The most growth potential in the hotel and other travel accommodation markets by type will arise in the hotel and motels market. It will gain $394.8 billion in global annual sales by 2026.
b.) By mode of booking
This segment includes online bookings, direct bookings, and other modes of booking.
The direct bookings market accounted for 49.7% of the total market in 2021, making it the largest segment of the hotel and other travel accommodation market by mode of booking.
The online bookings segment, projected to be the fastest-growing segment in the hotel and other travel accommodation market, would grow at a CAGR of 18.2% during the 2021-26 period.
With the highest growth potential, the online bookings market will gain $226.6 billion of global annual sales by 2026.
c.) By application
This segment includes tourist accommodation (leisure) and official business (professional).
The official business (professional) market was the largest segment of the hotel and other travel accommodation markets by application. It accounted for 64.1% of the total market in 2021.
Expected to be the fastest-growing segment in the hotel and other travel accommodation markets, the official business (professional) market is expected to grow at a CAGR of 12.7% during the forecasted period.
The official business (professional) market will gain $339.3 billion of global annual sales by 2026.
d.) By price point
This segment includes economy, mid-range, and luxury.
Accounting for 63.5% of the total market in 2021, the mid-range market was the largest segment of the hotel and other travel accommodation market by price point.
However, the luxury market is expected to be the fastest-growing segment in the hotel and other travel accommodation markets in the forecasted period, with growth at a CAGR of 13.1%.
Furthermore, the highest growth potential in the hotel and other travel accommodation markets by price point will arise in the economy market. It will gain $107.2 billion in global annual sales by 2026.
e.) By ownership
This segment includes chained and standalone.
The standalone market accounted for 68.4% of the total market in 2021, making it the largest segment of the hotel and other travel accommodation market by ownership.
But the chained market is forecasted to be the fastest-growing segment in the hotel and other travel accommodation market. It is expected to grow at a CAGR of 14.5% during 2021-26.
The standalone market is seen as the one with the highest potential growth, gaining $317.5 billion of global annual sales by 2026.
f.) By property type
This segment includes hotels, serviced residences, apartment hotels, co-living, and other property types.
The hotel market was the largest segment of the hotel and other travel accommodation markets by property type. It accounted for 54.2% of the total market in 2021.
The hotel market is further expected to grow at a CAGR of 13.0% during 2021-26, expected to be the fastest-growing segment in the hotel and other travel accommodation markets.
Hotels market has the top growth potential and will gain $293.7 billion of global annual sales by 2026.
Hospitality industry statistics as per guest/customer preferences
In 2023, 61% of people also intend on planning their vacations further in advance.
Nostalgia gateway is the most sought types of vacations and experiences in 2023, followed by community minded and splurge vacations.
Sustainable traveling and green hotels have been the trends, especially after the pandemic and climate change. In fact 81% of global travelers stated in a survey that sustainable travel matters to them. Furthermore, 50% of the participants said that recent news about climate change has influenced them to make more sustainable travel choices.
Post-pandemic, 78% of millennials feel that they would rather spend their money on experiences than on things.
In 2023, 42% of travelers would like to go on a break that helps them focus on their mental and physical health.
Moreover, in the age of technology, 66% of millennials book their trips using a smartphone, while 74% use their mobile for travel-related research.
Around 70% of millennials prefer to book with hotels that offer technologies like contactless check-in and payments.
In a survey, 80% of hotel guests said that they would prefer to download and check in/out and gather hotel information through the hotel app.
Moreover, 47% of hotel guests will prefer to order room service via an app.
Research estimates that digital nomads could be a $1B new market. This was an estimation for the U.S. alone.
With work and leisure combined these days, 79% of bleisure travelers said that they volunteer more often for business trips where they can extend and enjoy some vacation time.
During the pandemic, more than 6,70,000 hotel industry operation jobs and nearly 4 million hospitality jobs were lost.
The hospitality industry’s contribution to the global economy is forecasted to grow to $5.8 trillion in 2027 at a CAGR of 5.5%.
Hospitality industry technology trends
Around 93% of hoteliers witnessed the biggest gains in terms of efficiency in hotel operations with the use of technology.
Around 89% of on-property respondents are likely to report that technology usage benefitted their teams in a survey.
More than half i.e., 50% of hoteliers feel technology companies don’t understand their needs.
As of 2022, 85.9% of hoteliers reported offering or planning to offer in-room technology, with only 59% of hoteliers using in-room technology before the pandemic.
In another survey, 54% of hoteliers said they were implementing technology that would enhance the front desk experience – or eliminate it completely – by 2025.
As per research, there was a 15% increase in conversion rates when hotels added high-quality images, compared to when they posted low-quality photos on their website.