Hotel and Other Travel Accommodation Market Report 2025

The hotel and other travel accommodation market size has grown strongly in recent years. It will grow from $1.3 trillion in 2024 to $1.39 trillion in 2025 at a compound annual growth rate (CAGR) of 6.8%. The growth in the historic period can be attributed to rise in disposable income, growth in mobile applications for hotel, restaurants and travel, improved earning capacity, emerging markets growth, growth in the travel and tourism industries and rising aging population and early retirement.

The hotel and other travel accommodation market size is expected to see strong growth in the next few years. It will grow to $1.8 trillion in 2029 at a compound annual growth rate (CAGR) of 6.7%. The growth in the forecast period can be attributed to economic growth in developed nations, growing millennial travelers, rising participation in outdoor activities, rising spend on leisure, technological developments and a shift in travel trends. Major trends in the forecast period include focus on acquiring companies, focus on bringing more innovative hotel design, investing in 3D printing technology for personalized options, adopt smart room keys to improve customers’ convenience and overall experience, consider adopting the use of artificial intelligence, improve customer experiences, focus on offering attractive packages to solo travelers to maximize profits, and focus on improving their rank on search engines to attract customers.

The tourism and hotel industries are experiencing a positive impact from the increasing use of social media and widespread access to mass media. As tourists share their travel information, photos, and videos on social platforms, global awareness of tourist destinations and recreational experiences offered by various countries is on the rise. For example, a report from Kepios Pte. Ltd. in October 2022 revealed a significant increase in social media users by 227 million over the past year, reaching 4.7 billion by the beginning of July 2022. The global social media user base expanded by more than 5% in the last year, constituting 59 percent of the world's total population. On a daily basis, the world collectively spends over 10 billion hours on social media platforms, equivalent to nearly 1.2 million years of human existence. Consequently, the growing use of social media and broader access to mass media are contributing to increased demand in the hotel and other travel accommodation market.

The expanding tourism sector is anticipated to boost the growth of the hotel and other travel accommodation markets in the future. Tourism is a cultural, social, and economic phenomenon that involves individuals traveling to countries or locations outside their usual environment for personal, business, or professional reasons. Hotels and various travel accommodations are essential components of the tourism industry, providing visitors with comfortable and convenient lodging options while significantly contributing to local economies through tourism-related spending and job creation. They play a vital role in attracting and accommodating tourists, enhancing their overall travel experiences. For instance, in May 2024, the Office for National Statistics Census, a UK-based government agency, reported that UK residents took 6.3 million international business trips in 2023, up from 4.9 million in 2022. Consequently, the growth of the tourism sector is driving the expansion of the hotel and other travel accommodation markets.

The hotel industry is undergoing transformation through the adoption of technologies that enhance customer experiences, resulting in significant improvements and cost savings. Key trends in the accommodation industry include the integration of near-field-communication (NFC) technology, infrared technology, and the use of robots. NFC facilitates data exchange between devices, enabling instant and secure mobile payments. Infrared sensors address customer complaints related to housekeeping interruptions. Hotels are also deploying robots for tasks such as delivering amenities to guest rooms. Hotel operators are investing in automated systems and technologies to streamline processes, reduce costs, and personalize guest experiences.

Major companies in the hotel and other travel accommodation market are concentrating on developing pod hotels to offer affordable, efficient lodging options that maximize space and meet the needs of cost-sensitive travelers seeking unique and modern experiences. A pod hotel is a type of accommodation that includes compact, modular sleeping units or pods. For example, in September 2024, JPOD Hotels Group, an Ireland-based company, opened a Pod Hotel at the Rajiv Gandhi International Airport (RGIA) in Hyderabad. This facility is strategically positioned near the City Side Check-In area at the car park level, aimed at enhancing the travel experience for passengers by providing a contemporary and convenient lodging choice. The JPOD Hotel provides travelers with a private space to rest, work, or relax, equipped with modern amenities tailored to the needs of busy passengers. Each pod is designed for comfort and privacy, making it an excellent option for both business and leisure travelers.

Major companies operating in the hotel and other travel accommodation market include Marriott International, MGM Resorts International, Intercontinental, Ctrip.Com International Ltd, Hilton Worldwide Holdings, Accor Hotels, Shanghai Jin Jiang International Hotels (Group) Company Limited, The Ascott Limited, Btg-Jianguo Hotels & Resorts Co., Ltd, Guangdong (International) Hotel Management Holdings ltd, Jining Hotel Corporation, Ltd, Hyatt Hotels Corporation, Radisson Blue Hotels, Shangri La Hotels & Resorts, Taj Hotels Resorts & Places, The Lalit Hotels, The Leela Palace, The Oberoi Group, Relais Bourgondisch Cruyce (Belgium), Nh Collection Brussels Grand Sablon (Belgium), Hotel Academie (Belgium), Thon Hotel Bristol Stephanie (Belgium), Pillows Grand Boutique Hotel Reylof(Belgium), Boutique Hotel Am Stephansplatz (Austria), Hotel Sans Souci Wien (Austria), Hotel Kaiserhof Wien (Austria), Cap Estel (France), Aman Le Melezin (France), Shangri-La Hotel Paris (France), Hotel Residence Agnes (Czech Republic), Hotel Pod Vezi (Czech Republic), Grandium Hotel Prague (Czech Republic), Metropolitan Boutique Hotel (Poland), Puro Krakow Kazimierz (Poland), Puro Warszawa Centrum (Poland), Am Resorts, Moon Palace Golf & Spa, The Venetian Resort Las Vegas, The Signature, Citycenter, Wynn Las Vegas, Encore Las Vegas, Luxor Las Vegas, Resorts World Las Vegas, Host Hotels & Resorts Inc, Huazhu Group Ltd, Wyndham Hotels & Resorts Inc, Park Hotels & Resorts Inc., Louvre Hotéis, Choice Hotels International, Nh Hotel Group, Saleh Bin Lahej Group, Emaar Hospitality Group, Jumeirah Group, Al Khozama Management Company, Rotana, Tsogo Sun, City Lodge Hotel Group, Louvre Hotels Group, Radisson Hotel Group.

Asia-Pacific was the largest region in hotel and other travel accommodation in 2024. North America was the second largest region accounting in the global hotel and other travel accommodation market. The regions covered in the hotel and other travel accommodation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the hotel and other travel accommodation market report are Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The hotel and other travel accommodation market includes revenues earned by entities by providing short-term lodging services such as hotels, motor hotels, resort hotels, and motels. The establishments in this industry may offer food and beverage services, recreational services, conference rooms, convention services, laundry services, parking, and other services. This market includes revenues from sales by restaurants to a delivery service but not the revenues of the delivery service itself. Only goods and services traded between entities or sold to end consumers are included.

A hotel or any other form of travel accommodation denotes a place where lawful travelers can obtain food and shelter, provided they possess the means to pay and are in satisfactory health for acceptance. Accommodation refers to a collection of rooms or a structure where individuals can live or stay, and it is imperative for any tourists embarking on a journey to another destination, as they will invariably require a place to stay, such as hotels, caravan parks, campgrounds, and similar establishments.

The primary categories of hotel or other travel accommodations encompass hotels and motels, casino hotels, bed and breakfast accommodations, and all other types of traveler accommodations. Bed & breakfast accommodation is a lodging arrangement that incorporates an overnight stay along with the first meal of the day in the overall fee. Various modes of booking, including online bookings, direct bookings, and others, are available, and they come in different ownership structures such as chained and standalone. Services are offered at different price points, including economy, mid-range, and luxury, catering to both tourist accommodation (leisure) and official business (professional) purposes. The property types encompass hotels, serviced residences, apartment hotels, co-living spaces, and other relevant options.

The hotel and other travel accommodation market research report is one of a series of new reports that provides hotel and other travel accommodation market statistics, including hotel and other travel accommodation industry global market size, regional shares, competitors with a hotel and other travel accommodation market share, detailed hotel and other travel accommodation market segments, market trends and opportunities, and any further data you may need to thrive in the hotel and other travel accommodation industry. This hotel and other travel accommodation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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