The global budget hotels market was valued at $276.3 billion in 2022, and is projected to reach $430.9 billion by 2032, growing at a CAGR of 4.1% from 2023 to 2032.The hospitality sector's budget hotel market serves tourists looking for reasonably priced lodging options without sacrificing comfort and convenience. The increased demand from budget-conscious travelers, including tourists, entrepreneurs, and families, has propelled this market's growth throughout the years. Budget hotels appeal to a wide range of demographics and offer a more affordable option of expensive and luxurious lodgings.
Budget hotels are distinguished by their affordable pricing, with the goal of offering a comfortable stay at a portion of the price of higher-end options. While specific features may vary, these accommodations often provide necessities like functional and clean rooms, minimal toiletries, Wi-Fi connectivity, and convenient locations that are frequently close to transportation hubs, tourist destinations, or commercial areas.
The global budget hotels market is analyzed on the basis of type, guest type, mode of booking, and region. By type, the market is divided into limited-service hotels, capsule hotels, hostels, motels, and others. As per guest type, the market is segmented into business travelers, leisure travelers, families, and others. Depending on the mode of booking, it is classified into online travel agency, hotel websites, direct booking, and others. Region wise, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, the UK, France, Italy, Spain, and the rest of Europe), Asia-Pacific (China, India, Japan, Australia, Thailand, Vietnam, and the rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
There are several factors behind the growth of the budget hotel sector. Firstly, the number of potential clients looking for reasonably priced, yet comfortable housing has increased due to improved travel accessibility and an expanding middle-class population. Second, shifting customer preferences favor adventures and discovery over luxurious lodgings, which increases the demand for affordable accommodations.
Numerous hotel chains and independent operators have moved to the budget hotel market in response to this demand, creating fierce rivalry. This has promoted advances in technological integration, innovative marketing strategies, and efficient operations. Customers can now compare prices, read reviews, and make bookings with ease due to online booking systems and mobile apps, which have helped the industry expand.
But there are still challenges in the market for budget hotels. Challenges must be overcome in order to preserve the fine line between quality and cost-cutting strategies. The reputation of a hotel can be damaged by unfavorable reviews and bad customer service in the era of social media. As a result, in order to foster client loyalty and good word-of-mouth, successful budget hotels emphasize providing dependable services.
As a result, the growing market for budget hotels satisfies the needs of tourists who want to travel affordably without compromising on basic amenities. This industry is still developing in response to shifting consumer preferences and technology improvements because of its focus on affordability, necessary facilities, and advantageous locations. The budget hotel market is prepared to innovate and adapt as the tourism industry continues to be dynamic, ensuring its relevance going forward.
The major players operating in the global budget hotels market are G6 Hospitality LLC., Ibis Budget Hotel, OYO Hotels & Homes, easyHotel, Red roof inn & Suites, Super 8, Toyoko Inn, Travelodge, B&B HOTELS Group, and Premier Inn.
Budget hotels are distinguished by their affordable pricing, with the goal of offering a comfortable stay at a portion of the price of higher-end options. While specific features may vary, these accommodations often provide necessities like functional and clean rooms, minimal toiletries, Wi-Fi connectivity, and convenient locations that are frequently close to transportation hubs, tourist destinations, or commercial areas.
The global budget hotels market is analyzed on the basis of type, guest type, mode of booking, and region. By type, the market is divided into limited-service hotels, capsule hotels, hostels, motels, and others. As per guest type, the market is segmented into business travelers, leisure travelers, families, and others. Depending on the mode of booking, it is classified into online travel agency, hotel websites, direct booking, and others. Region wise, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, the UK, France, Italy, Spain, and the rest of Europe), Asia-Pacific (China, India, Japan, Australia, Thailand, Vietnam, and the rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
There are several factors behind the growth of the budget hotel sector. Firstly, the number of potential clients looking for reasonably priced, yet comfortable housing has increased due to improved travel accessibility and an expanding middle-class population. Second, shifting customer preferences favor adventures and discovery over luxurious lodgings, which increases the demand for affordable accommodations.
Numerous hotel chains and independent operators have moved to the budget hotel market in response to this demand, creating fierce rivalry. This has promoted advances in technological integration, innovative marketing strategies, and efficient operations. Customers can now compare prices, read reviews, and make bookings with ease due to online booking systems and mobile apps, which have helped the industry expand.
But there are still challenges in the market for budget hotels. Challenges must be overcome in order to preserve the fine line between quality and cost-cutting strategies. The reputation of a hotel can be damaged by unfavorable reviews and bad customer service in the era of social media. As a result, in order to foster client loyalty and good word-of-mouth, successful budget hotels emphasize providing dependable services.
As a result, the growing market for budget hotels satisfies the needs of tourists who want to travel affordably without compromising on basic amenities. This industry is still developing in response to shifting consumer preferences and technology improvements because of its focus on affordability, necessary facilities, and advantageous locations. The budget hotel market is prepared to innovate and adapt as the tourism industry continues to be dynamic, ensuring its relevance going forward.
The major players operating in the global budget hotels market are G6 Hospitality LLC., Ibis Budget Hotel, OYO Hotels & Homes, easyHotel, Red roof inn & Suites, Super 8, Toyoko Inn, Travelodge, B&B HOTELS Group, and Premier Inn.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the budget hotels market analysis from 2022 to 2032 to identify the prevailing budget hotels market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the budget hotels market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global budget hotels market trends, key players, market segments, application areas, and market growth strategies.
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Key Market Segments
By Type
- Limited Service Hotels
- Capsule Hotels
- Hostels
- Motels
- Others
By Guest Type
- Business Travelers
- Leisure Travelers
- Families
- Others
By Mode of Booking
- Online Travel Agency
- Hotel Websites
- Direct Booking
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- India
- Japan
- Australia
- Thailand
- Vietnam
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
- Key Market Players
- easyHotel
- Oravel Stays Limited
- Travelodge Hotels Ltd.
- B&B HOTELS Group
- Whitbread PLC
- Toyoko Inn Co., Ltd.
- Red Roof Inn
- G6 Hospitality LLC.
- Wyndham Hotels & Resorts, Inc.
- ibis Hotel
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: BUDGET HOTELS MARKET, BY TYPE
CHAPTER 5: BUDGET HOTELS MARKET, BY GUEST TYPE
CHAPTER 6: BUDGET HOTELS MARKET, BY MODE OF BOOKING
CHAPTER 7: BUDGET HOTELS MARKET, BY REGION
CHAPTER 8: COMPETITIVE LANDSCAPE
CHAPTER 9: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report, the budget hotels market was valued at $276.3 billion in 2022, and is estimated to reach $430.9 billion by 2032, growing at a CAGR of 4.1% from 2023 to 2032.Budget hotels are popular with tourists who are on a limited budget because of their comparably lower lodging rates. Budget hotels often offer necessary facilities like cozy mattresses, clean linens, and simple toiletries even though they lack the numerous amenities available in higher-end accommodations. Budget hotels frequently concentrate on the necessities, such as a front desk, housekeeping, and sometimes a small dining area, while full-service hotels offer a variety of services like room service, concierge, and spa facilities.
The market for budget hotels includes establishments that provide travelers looking for economical yet comfortable stays with cost-effective lodging options. Numerous types of visitors are catered to by these hotels, including families, young explorers, business travelers, and tourists on limited funds. Budget hotels are marketed as a sensible alternative since they put an emphasis on providing necessary services while reducing frills and extra costs. These lodgings continue to take a no-frills approach, emphasizing clean and useful areas, cozy bedding, and simple toiletries.
The budget hotel industry has seen numerous major shifts in recent years. With mobile check-in, keyless entry systems, and guest service automation improving efficiency and guest experiences, technology integration has become crucial. In an effort to attract environmentally conscious guests, several budget hotels have also adopted sustainability programs by implementing energy-saving techniques and eco-friendly facilities.
The global budget hotels market is analyzed on the basis of type, guest type, mode of booking, and region. By type, the market is divided into limited-service hotels, capsule hotels, hostels, motels, and others. As per guest type, the market is segmented into business travelers, leisure travelers, families, and others. Depending on the mode of booking, it is classified into online travel agency, hotel websites, direct booking, and others. Region wise, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, the UK, France, Italy, Spain, and the rest of Europe), Asia-Pacific (China, India, Japan, Australia, Thailand, Vietnam, and the rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
Budget hotels cater to particular segments of the traveler population that are on fewer resources, such as eco-conscious or solo travelers, families, or digital nomads. Offerings with a niche market differentiate them and attract loyal clients. For queries from visitors, advice from staff, and problem-solving, chatbots and artificial intelligence are used more frequently. As a result of this technology, staff workload is decreased, and guest interactions are streamlined. By sponsoring neighborhood gatherings, organizing workshops, and forming alliances with surrounding companies, budget lodgings become important hubs for the community. In doing so, the hotel creates a sense of community and becomes more than just a place to stay. The"workation" trend, in which people combine work and leisure during extended visits, has an impact on budget-friendly hotels. In addition to providing cozy workstations and amenities, hotels provide packages that are geared toward remote workers.
The market for budget hotels has been severely impacted by the COVID-19 outbreak. Budget hotels faced extraordinary difficulties as a result of travel bans, lockdowns, and health concerns that caused a dramatic fall in travel demand. Declining occupancy rates, cancellations, and revenue losses were common at many budget-friendly hotels.
Hotels now frequently accept direct reservations through their websites, bypassing third-party booking sites in exchange for special benefits and discounts. Budget hotels frequently use adaptable room designs in order to compete, taking into account the changing needs of visitors, including those who work remotely. Improved guest services, including free breakfasts and faster Wi-Fi, provide travelers with more for their money without raising hotel rates.
Budget hotels have traditionally provided affordable lodging alternatives, but they are now modifying their services to meet the needs of a wide range of customers by incorporating new trends and preferences. The global traveler population continues to demand comfort, convenience, and affordability as the hospitality business develops, and the market for budget hotels keeps coming up with new and creative solutions.
The major players analyzed for the global budget hotels industry are G6 Hospitality LLC., Ibis Budget Hotel, OYO Hotels & Homes, easyHotel, Red roof inn & Suites, Super 8, Toyoko Inn, Travelodge, B&B HOTELS Group, and Premier Inn. Players are constantly adapting to shifting consumer tastes and preferences, technological developments, and market trends in this dynamic competitive environment. Differentiation is essential, whether it be accomplished through pricing plans, service offers, branding, or technological integration. The demand for affordable yet decent lodging across various travel segments drives the market for budget hotels.
KEY FINDINGS OF STUDY
By type, the limited-service hotels segment was the highest revenue contributor to the market.As per guest type, the leisure travelers segment was the highest revenue contributor to the market.
Depending on the mode of booking, the online travel agency segment was the highest revenue contributor to the market.
Region wise, the North America region was the highest revenue contributor in the market.
Companies Mentioned
- easyHotel
- Oravel Stays Limited
- Travelodge Hotels Ltd.
- B&B HOTELS Group
- Whitbread PLC
- Toyoko Inn Co., Ltd.
- Red Roof Inn
- G6 Hospitality LLC.
- Wyndham Hotels & Resorts, Inc.
- ibis Hotel
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 250 |
| Published | October 2023 |
| Forecast Period | 2022 - 2032 |
| Estimated Market Value ( USD | $ 276.3 billion |
| Forecasted Market Value ( USD | $ 430.9 billion |
| Compound Annual Growth Rate | 4.5% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
