Global Budget Hotels Market to 2023: Market data and insights on the global luxury hotels industry

Global Budget Hotels Market to 2023: Market data and insights on the global luxury hotels industry

Summary

The US reported the highest revenue in the budget hotel market in the world, followed by the UK and France in 2018. Its revenue increased mainly due to an increase in Average Daily Rate (ADR). The ADR grew by 2.9% on an annual basis and reached US$64.1 in 2018. The US is likely to retain its top spot in budget hotel market with respect to the total revenue.

The hotel market in the Middle East, which was earlier known for luxury stay, has seen a shift towards budget category with the growing importance of tapping the market of millennial travelers. Growing arrivals from Asian countries, who belong to the middle class category provided opportunities for investors in the Middle Eastern countries to focus on budget friendly hotels.

Furthermore, the budget boutique hotels are increasingly becoming popular among business and leisure travelers who wish to spend less but seek quality and amenities. The new players in the budget hotels market focus on redefining the budget from the earlier perception of basic hotels. The target customers for this model are travelers who wish for Wi-Fi, sumptuous breakfasts and chic furnishings. The rise of budget boutique hotels is observed in the UK.

The traditional budget hotel markets in Southeast Asian countries witnessed disruptions with the entry of OYO and RedDoorz. Young, price sensitive travelers are the target customers for these technology oriented startups, which offer reliable accommodation at a fraction of the price charged at the international hotel chains. The growth is supported by the rapid increase in the internet penetration rate in recent times. There are investment opportunities in non-metro cities across Southeast Asia, where the internet economy is still in the nascent stages. Technology driven business models are expected to be the bridges for the under-banked population in the region to access financial services.

The “Global Budget Hotels Market to 2023” research report provides in-depth analysis of the key market trends that are shaping the future of this segment and an analysis of the budget hotel market globally. Detailed market insight is provided on the Americas, Asia-Pacific, Middle East & Africa, and Europe. It also features profiles of some of the segment’s leading players and looks at how companies can better meet their customers' needs.

Key Highlights

• In 2018, the US reported the highest revenue in the budget hotel market in the world, followed by the UK and France. Its revenue increased by 3.5% year-on-year, mainly due to an increase in Average Daily Rate (ADR).
• Branded budget hotels accelerated growth in the UK. In terms of revenue, the UK was the second largest market for budget hotels in the world in 2018.
• The hotel market in the Middle East, which was earlier known for luxury stay has seen a shift towards budget category with the growing importance of tapping the market of millennial travelers.

Scope

• The Budget Hotels market report provides in-depth analysis of the key market trends that are shaping the future of this segment and an analysis of the budget hotel market globally. Detailed market insight is provided on the Americas, Asia-Pacific, Middle East & Africa, and Europe.
• It also features profiles of some of the segment’s leading players and looks at how companies can better meet their customers' needs.

Reasons to buy

• Gauge which are the biggest and most promising regional markets for the budget hotels market
• Understand the demand-side dynamics within the industry to identify key trends and growth opportunities
• Gain an understanding of the outlook for regional markets and learn from existing successes and our recommendations.