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2024

Travel Accommodation Market

Travel Accommodation Market Size, Share, Competitive Landscape and Trend Analysis Report by Type, Application, Price Point ,and Mode of Booking: Opportunity Analysis and Industry Forecast, 2023 - 2032

CG : Travel & Luxury Travel

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Author's: Sugandha Srivastava | Roshan Deshmukh
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The travel accommodation market size was valued at $710.3 billion in 2022 and is projected to reach $2,260.4 billion by 2032, growing at a CAGR of 12.3% from 2023 to 2032.Travel accommodation refers to lodging service rented by travelers for the purpose of stay. Travelers can choose from among various types of travel accommodations available, including hotels, hostels, resorts, vacation rentals, and others. The ideal choice of stay is determined depending upon multiple factors such as purpose & budget of travel accommodation, availability of the property, and mode of booking. Accommodation can be booked through various sources, which include online travel agencies, hotel websites, booking through agents, and direct bookings. 

Travel Accommodation Market

Market Dynamics

The liberalization of visa regulations in many countries such as Africa, India, and China, have eased travel for visitors, which is a key factor expected to positively impact the growth of the travel & tourism industry. This has influenced the travel accommodation market by tourists, since it has made travel convenient. In addition, increase in consumer spending across countries such as India, Australia, and New Zealand significantly contributes toward the growth of the global travel accommodation industry. This is majorly attributed to currency rate fluctuations. 

The rise in the desire for genuine cultural experiences within the tourism sector has propelled the overall growth of the tourism industry. Moreover, modern travelers seek more than conventional sightseeing for immersive encounters with local cultures and traditions. Destinations deeply rooted in the heritage of the respective communities provide an ideal platform for such authentic experiences. In addition, tourists are enticed by the prospect of engaging with local residents, actively participating in traditional rituals, indulging in indigenous cuisine, and delving into age-old customs, increasing the travel accommodation market share.

According to Travel Accommodation market trends, the growing demand has motivated communities to actively preserve and share their cultural treasures for fostering economic opportunities and safeguarding the rich heritage. In recognition of the appeal of authentic cultural immersion, governments and travel operators have supported travel accommodation market initiatives through investments, promotional efforts, and policy frameworks. 

The decrease in a host country’s currency value is expected to attract inbound tourism, which is expected to create a positive effect on the travel accommodation sector. However, scams and rampant fraud attacks in the online travel accommodation booking sector are anticipated to restrain the growth of the global market. On the contrary, the trend of solo travelling has gained significant importance in the recent past, which is expected to boost the demand for budget-friendly travel accommodations such as hostels, capsule hotels, paying guests, and others, thereby offering remunerative opportunities for travel accommodation market growth. 

According to travel accommodation market analysis, expansion of travel accommodation faces notable challenges due to insufficient support infrastructure. This has further affected the Travel accommodation market demand. The success of travel accommodation hinges on active community participation and local benefits. However, issues such as limited transportation options, inadequate accommodation, service deficiencies, ineffective information dissemination, insufficient training, challenges in environmental sustainability, and regulatory hurdles have impeded its growth. Travel accommodation involves remote and marginalized communities, often lacking proper transportation infrastructure, accommodation facilities, and basic services. This creates hesitancy among tourists who seek safe, comfortable, and affordable lodging. Moreover, the lack of essential services such as healthcare, sanitation, and access to clean water diminishes the overall quality of the tourism experience. The absence of training and capacity-building programs, essential for developing skills in tourism management, customer service, and environmental conservation, further hampers market expansion.

Segmental Overview

The global travel accommodation market is segmented into type, application, price point, mode of booking and region. The type segment comprises hotel, hostel, resort, vacation rental, and others. The applications covered in the study include leisure, professional, and others. On the basis of price point, the market is categorized into economy, mid-range, and luxury. Depending on mode of booking, it is segregated into online travel agency, hotel website, and others. Region wise, it is studied across North America (U.S., Canada, and Mexico), Europe (Germany, Spain, UK, Italy, France, Switzerland, and rest of Europe), Asia-Pacific (India, China, Japan, Australia, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).

By Type

As per type, the hotel segment dominated the Travel Accommodation market in 2022 and is anticipated to maintain its dominance throughout the Travel Accommodation market forecast period. Hotels offer a range of services primarily based on budget considerations. Luxury hotels target high-paying guests seeking exceptional services and premium room features, while budget-friendly accommodations provide cost-effective options to a broader demographic. The hotel industry has experienced substantial growth, driven significantly by the expanding tourism sector. The increasing number of individuals traveling for leisure and vacations has multiplied over the decades. This surge in leisure travel has directly stimulated the demand for hotels as preferred accommodation options for travelers. Simultaneously, the rise in international business activities across various regions has given impetus to professional tourism. Business-related events such as meetings, conferences, and exhibitions have witnessed an uptick, consequently fueling the demand for hotels as a preferred choice for travel accommodation.

Travel Accommodation Market by Type

By Application

As per application, the leisure segment dominated the Travel Accommodation market in 2022 and is anticipated to maintain its dominance throughout the forecast period. Travelers make decisions about their destination and lodging based on their travel objectives and financial considerations. A contemporary trend in the hotel industry involves the popularity of Capsule Hotels, particularly widespread in Asia. Furthermore, resorts are adapting to the demand for experiential adventure services, recognizing the growing trend of consumers investing in unique travel experiences. The surge in the number of millennial travelers globally has led to a rapid increase in the demand for hostels, prompting the adoption of attractive amenities and innovative infrastructure by various hostels. This include rooms crafted into mountainsides, beachfront hostels, and other distinctive offerings, which presents travel accommodation market opportunities.

Travel Accommodation Market by Application

By Price Point

As per price point, the mid-range segment dominated the Travel Accommodation market in 2022 and is anticipated to maintain its dominance throughout the forecast period. In areas facing challenges like inflation, businesses are tightening their budgets, favoring mid-range accommodations over luxurious options. Travelers aiming to balance cost savings with a desire for a comfortable stay and amenities often opt for mid-range accommodations. Moreover, the increasing size of the middle-class population has contributed to the heightened demand for mid-range lodging.

Travel Accommodation Market by Price Point

By Mode of Booking

As per mode of booking, the direct booking segment dominated the Travel Accommodation market in 2022 and is anticipated to maintain its dominance throughout the forecast period. Modern travelers increasingly favor experiential journeys, often opting for spontaneous, unplanned trips. These impromptu travels frequently result in walk-in bookings and on-the-spot decisions by travelers. In addition, a considerable number of travelers prefer personally visiting the accommodation to ensure their stay fits their preferences before making a reservation. Direct bookings are particularly favored by last-minute travelers or during emergencies such as delayed flights/trains or unexpected weather conditions. Travel agents have gained popularity as providers of personalized services by attentively listening to and understanding the needs of travelers. They play a crucial role in alleviating the stress associated with navigating numerous available options. Consequently, there is a growing trend of booking travel accommodations through agents, especially among the millennial population.

Travel Accommodation Market by Mode of Booking

By Region

As per region, the Europe segment dominated the Travel Accommodation market in 2022 and is anticipated to maintain its dominance throughout the forecast period. The growth of air connectivity, increased intraregional travel, the proliferation of affordable travel options, and the widespread adoption of digital platforms have collectively contributed to a robust expansion in the travel and tourism sector across European countries. However, factors such as political uncertainty, trade tensions, and a global economic slowdown act as constraints, limiting the overall market growth in Europe. In response to these challenges, the European Commission has introduced a new framework titled "Europe, the world's No. 1 tourist destination" to enhance competitiveness and foster sustainable tourism development. Consequently, the anticipated growth in the travel and tourism industry is expected to have a positive impact on the travel accommodation market. Shifting consumer preferences towards experiential spending, particularly on holidays, has resulted in an increased overall expenditure on accommodation services over the years.

Travel Accommodation Market by Region

Moreover, substantial cross-border investments in countries such as Spain and the UK have driven heightened hotel transaction volumes in Europe, thereby boosting the growth of the travel accommodation market. Another significant trend contributing to market growth is the rise in business travel, particularly in Western Europe.

Competition Analysis

The major players in the global travel accommodation industry that have been analyzed in this report include 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, and Oyo Rooms.

The operators of travel accommodation market are always creating new strategies and modification in their system  to satisfy the change in requirements of their customers. They make investments in R&D to create novel combinations of services with enhanced functionality, stability, and selectivity. The key players of travel accommodation market are frequently working with innovative strategies, regulatory organizations, and other industry players for catering the customers. The operators are expected to increase their capacities, pool their knowledge, and create novel solutions through these collaborations.   

The players of the market have improved their service capacity and cost cutting, which are expected to involve both investing in new facilities and renovating current ones to keep up with the rise in demand for travel accommodation market Furthermore, companies of travel accommodation market are anticipated to merge with or buy other businesses to broaden their service lines, get access to new markets or technologies, or do both at the same time. Companies are expected to benefit from merging and acquiring businesses by expanding their service lines, gaining a larger market share, and enhancing their economies of scale.    

Key benefits for stakeholders

  • This report provides a quantitative analysis of the current trends, estimations, and dynamics of the global travel accommodation market size from 2021 to 2032 to identify the prevailing travel accommodation market opportunity.
  • The key countries in all the major regions are mapped based on their market share.
  • Porter’s five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier-buyer network.
  • A comprehensive analysis of factors that drive and restrict the travel accommodation market growth is provided.
  • An in-depth analysis of the global travel accommodation market helps determine the prevailing market opportunities.
  • The report includes details of the analysis of the regional and global markets, key players, market segments, application areas, and growth strategies.

Travel Accommodation Market Report Highlights

Aspects Details
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By Type
  • Hotels
  • Hostels
  • Resorts
  • Vacation Rentals
  • Others
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By Application
  • Leisure
  • Professional
  • Others
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By Price Point
  • Economy
  • Mid-Range
  • Luxury
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By Mode of Booking
  • Online Travel Agency
  • Hotel Website
  • Others
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Key Market Players

Hilton Worldwide Holdings Inc., Oyo Rooms, Red Lion Hotels Corporation, Accor Hotels Group, Hyatt Hotels Corporation, Wyndham Destinations, Radisson Hotel Group, Airbnb Inc., Marriott International, A&O Hotels and Hostels GmbH

Analyst Review

The demand for travel accommodation is on a rise across the globe. Market players such as Marriott International, Hyatt Hotels Corporation, and Hilton Worldwide Holdings Inc. have adopted key developmental strategies such as business expansion and acquisitions to mark their presence in the global travel accommodation market. Moreover, they acquired brands worldwide and simultaneously took up joint ventures to create a strong global footprint. Rapid boom in the tourism industry, shift of consumer spending from product to experience, upsurge in professional/business travel, and rise in number of people travelling for leisure propel the growth of the global travel accommodation market.

In addition, exploring niche tourist destinations has become a new trend among travelers, and hence, has generated remunerative opportunity for market expansion in countries such as Indonesia, Greece, and Africa, and others. The operating industry players assert that the major factors which contribute toward expansion of the travel accommodation include the flourishing tourism industry, especially in remote and niche markets. The trend of exploring untapped regions and carrying out recreational activities has gained the attention of travelers and shaped travel accommodation in the recent past.

The travel accommodation giants majorly adopted business expansion by means of investment and acquisition as their key developmental strategy to sustain the stiff competition in the travel accommodation sector. By acquiring existing accommodation chains, the key players aim to create a strong market presence and expand their global footprint. However, rise in online scams and fraudulence such as fake calls, credit card scams, and fake online travel agencies, are the major challenges faced by travel accommodation companies, which hamper the growth of the global market.

 

Author Name(s) : Sugandha Srivastava | Roshan Deshmukh
Frequently Asked Questions?

. The travel accommodation market size was valued at $710.3 billion in 2022 and is projected to reach $2,260.4 billion by 2032, growing at a CAGR of 12.3% from 2023 to 2032.

The forecast period in the Travel Accommodation Market report is 2023 to 2032.

The base year calculated in the travel accommodation market report is 2022.

The major players in the global travel accommodation industry that have been analyzed in this report include 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, and Oyo Rooms.

The hotel segment is the most influential segment in the Travel Accommodation Market report

Europe holds the maximum market share of the Travel Accommodation Market.

The company profile has been selected on the basis of revenue, product offerings, and market penetration.

The market value of the travel accommodation market in 2022 was $ $2,260.4 billion.

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Travel Accommodation Market

Opportunity Analysis and Industry Forecast, 2023 - 2032