Hotels - Montenegro

Montenegro

Highlights

By 2024, the Hotels market in Montenegro is projected to reach a revenue of US$6.81m.
This is expected to grow annually at a rate of 2.85% (CAGR 2024-2029), resulting in a projected market volume of US$7.83m by 2029.
As for the number of users, the Hotels market is expected to have 65.20k users users by 2029.
In 2024, the user penetration rate is 8.1% and is expected to increase to 10.5% by 2029.
The average revenue per user (ARPU) is projected to be US$134.70.
By 2029, 76% of the total revenue in the Hotels market will be generated through online sales.
It is worth noting that in a global comparison, United States is expected to generate the most revenue (US$111bn in 2024) in the Hotels market.
Montenegro's hotel market is experiencing growth due to the country's stunning natural beauty and increasing interest from international travelers.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Hotels market in Montenegro has been experiencing significant growth in recent years, attracting a diverse range of tourists from around the world.

Customer preferences: Tourists visiting Montenegro are increasingly looking for unique and authentic experiences, driving the demand for boutique hotels and eco-friendly accommodations. Many travelers seek personalized services and cultural immersion during their stay, leading to a rise in the popularity of locally-owned hotels and guesthouses.

Trends in the market: One notable trend in the Montenegrin hotel market is the increasing focus on sustainable practices and green initiatives. Hoteliers are incorporating environmentally friendly features such as solar panels, water-saving systems, and locally sourced materials to appeal to eco-conscious travelers. Additionally, the growing popularity of wellness tourism has led to an increase in spa resorts and wellness-focused accommodations in Montenegro.

Local special circumstances: Montenegro's picturesque landscapes and rich cultural heritage make it a desirable destination for both leisure and business travelers. The country's strategic location along the Adriatic coast has also contributed to the growth of its hotel market, with many hotels offering stunning views of the sea and easy access to beaches and outdoor activities. The government's efforts to promote tourism and improve infrastructure have further boosted the development of the hotel sector in Montenegro.

Underlying macroeconomic factors: Montenegro's stable economic growth and increasing foreign investment have had a positive impact on the hotel market, attracting international hotel chains and leading to the development of luxury resorts and high-end accommodations. The country's favorable tax policies and pro-business environment have also encouraged hotel development and expansion. Additionally, Montenegro's growing popularity as a tourist destination in Europe has driven up demand for hotel rooms, resulting in a thriving hospitality industry.

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.