Hotels - Worldwide | Statista Market Forecast

It is projected that the revenue of Hotels market will reach US$426.50bn by 2024 worldwide.
Looking forward, an annual growth rate of 3.72% (CAGR 2024-2029) is expected, resulting in a projected market volume of US$511.90bn by 2029.
By this year, the number of users in this market is expected to reach 1.81bn users.
The user penetration is expected to hit 22.5% by 2029, up from 16.1% in 2024.
The average revenue per user (ARPU) is expected to be US$341.10.
By 2029, it is expected that 80% of the total revenue in the Hotels market will be generated through online sales.
It is noteworthy that United States, the most revenue will be generated in comparison to other countries, which will be US$111bn in 2024.
In Japan, hotels are incorporating traditional cultural elements such as tatami floors and Japanese gardens to attract tourists.

Definition:

The Hotels market includes hotels and professionally-run guest houses. These accommodations can be booked directly via the providers website, through a tour operator, a travel agency, an online travel agency (OTA), or by telephone.

Additional Information:

The main performance indicators of the Hotels market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues. Users represent the aggregated number of guests. Each user is only counted once per year. Well-known providers are Hotels.com, trivago, and Booking.com.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

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Booked directly via the providers website, through a tour operator, an online travel agency (OTA), a travel agency or by telephone

Private accommodation and holiday flats, private room and accommodation rentals (e.g. Airbnb)

The Hotels market is a dynamic and ever-evolving industry that is influenced by various factors such as customer preferences, trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in the Hotels market worldwide are increasingly seeking unique and personalized experiences during their travels. They are looking for accommodations that offer more than just a place to stay, but also provide memorable experiences and exceptional services. This trend has led to a rise in demand for boutique hotels, eco-friendly establishments, and themed accommodations.

Trends in the market: In Europe, the Hotels market is experiencing a trend towards sustainability and eco-conscious practices. Many hotels are implementing green initiatives to reduce their environmental impact and attract environmentally conscious travelers. Additionally, there is a growing popularity of wellness tourism, leading to an increase in wellness-focused hotels and resorts.

Local special circumstances: In Asia, the Hotels market is heavily influenced by the region's diverse cultures and traditions. Many hotels incorporate local elements into their design, cuisine, and overall guest experience to provide an authentic stay for travelers. This localization strategy helps hotels stand out in a competitive market and appeals to tourists seeking an immersive cultural experience.

Underlying macroeconomic factors: The Hotels market in North America is closely tied to the region's overall economic performance. As the economy grows, disposable income increases, leading to higher consumer spending on travel and accommodation. Additionally, factors such as exchange rates, inflation, and government policies can impact tourism flows and hotel occupancy rates in the region.

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.

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