Key regions: Vietnam, Indonesia, United Kingdom, Malaysia, Saudi Arabia
The Hotels market in GCC is experiencing significant growth and development, driven by various factors influencing consumer behavior and market dynamics in the region.
Customer preferences: Customers in the GCC region are increasingly seeking unique and luxurious experiences when selecting hotels, leading to a rise in demand for high-end accommodations with exclusive amenities and services. Additionally, there is a growing preference for hotels that cater to specific dietary requirements, such as offering halal or vegan food options, reflecting the diverse preferences of travelers in the region.
Trends in the market: In the GCC, there is a noticeable trend towards the development of eco-friendly and sustainable hotels, as environmental consciousness becomes more prevalent among consumers. Many hotels are incorporating green initiatives and practices to attract environmentally conscious guests. Moreover, the use of technology in enhancing customer experiences, such as mobile check-ins and smart room features, is becoming increasingly popular in the GCC hotel market.
Local special circumstances: One of the unique aspects of the GCC hotel market is the influence of seasonality on demand. During peak tourism seasons, such as major events or holidays, hotels experience a surge in bookings and higher room rates. Conversely, off-peak periods can result in lower occupancy rates and the need for promotional strategies to attract guests. Additionally, the presence of luxury hotel brands and the emphasis on opulence and extravagance in the region set it apart from other markets.
Underlying macroeconomic factors: The economic diversification efforts in the GCC countries, aimed at reducing dependence on oil revenues, have led to increased investments in tourism and hospitality infrastructure. This has positively impacted the hotel market, with new properties and international chains entering the market to cater to the growing number of tourists and business travelers. Additionally, government initiatives to promote tourism, such as visa reforms and major events, have further boosted the hospitality sector 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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