Market Insights Mobility Travel & Tourism

Hotels - EU-27

EU-27

It is projected that the Hotels market in the EU-27 will generate a revenue of US$74.44bn in 2024.
This revenue is expected to grow annually at a rate of 2.90% (CAGR 2024-2029), resulting in a market volume of US$85.89bn by 2029.
The number of users in this market is anticipated to amount to 213.10m users by 2029.
In 2024, the user penetration rate is expected to be 41.5%, which is projected to increase to 48.0% by 2029.
The average revenue per user (ARPU) is expected to be US$0.40k.
Online sales are projected to contribute 83% of the total revenue generated in this market by 2029.
In comparison with other countries, United States is expected to generate the most revenue, with a projected revenue of US$110,600m in 2024.
In EU-27, hotels in Spain are experiencing a rise in demand due to the country’s successful vaccination campaign and relaxed travel restrictions.

Key regions: Vietnam, Indonesia, United Kingdom, Malaysia, Saudi Arabia

Market

Region

Region comparison

Currency

Analyst Opinion

Over the past few years, the Hotels market in EU-27 has been experiencing significant growth and development.

Customer preferences: Customers in the EU-27 have shown a strong inclination towards personalized and unique hotel experiences. They are increasingly seeking accommodations that offer not just a place to stay, but also opportunities for cultural immersion and authentic local experiences. This trend has led to a rise in boutique hotels, eco-friendly lodgings, and properties that showcase the region's rich history and heritage.

Trends in the market: In countries like France and Italy, there has been a noticeable trend towards luxury and high-end hotels, catering to affluent travelers looking for exclusive amenities and top-notch services. On the other hand, in Eastern European countries such as Poland and Hungary, budget-friendly accommodation options have been gaining popularity, attracting cost-conscious tourists and backpackers. Additionally, the rise of digital platforms and online booking services has revolutionized the way customers search for and book hotels, leading to increased competition among hoteliers to enhance their online presence and reputation.

Local special circumstances: Certain countries in the EU-27, such as Spain and Greece, heavily rely on tourism as a key driver of their economies. As a result, the Hotels market in these countries is closely tied to the overall performance of the tourism sector. External factors such as geopolitical events, natural disasters, or global health crises can have a significant impact on hotel occupancy rates and revenue. Moreover, the seasonality of tourism in countries like Croatia and Portugal poses unique challenges for hoteliers, who must adapt their marketing strategies and pricing policies to attract guests during off-peak periods.

Underlying macroeconomic factors: The overall economic stability and growth prospects of the EU-27 countries play a crucial role in shaping the Hotels market. Favorable economic conditions, such as low unemployment rates, rising disposable incomes, and robust consumer confidence, tend to boost domestic and international travel, leading to increased demand for hotel accommodations. Conversely, economic downturns or uncertainties can result in reduced travel spending, forcing hotels to offer discounts and promotional packages to attract guests. Additionally, government policies and regulations related to tourism, hospitality, and labor practices can also influence the operating environment for hotels in the region.

Methodology

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.