Hotels - Southern Europe | Statista Market Forecast

The Hotels market in Southern Europe is projected to witness a significant increase in revenue, with an estimated value of US$26.48bn in 2024.
Moreover, the market is expected to grow at an annual rate of 2.91% between 2024 and 2029, resulting in a projected market volume of US$30.55bn by the end of 2029.
The number of users in this market is anticipated to reach 101.10m users by 2029, with an expected user penetration of 42.7%, as compared to 35.1% in 2024.
The average revenue per user (ARPU) is expected to be US$318.60.
Online sales are expected to contribute significantly to the overall revenue generated in this market, amounting to 85% of the total revenue by 2029.
It is noteworthy that United States is expected to be the highest revenue generating country in the Hotels market, with an estimated revenue of US$111bn in 2024, as compared to other countries.
Spain's hotel market is seeing a rise in sustainable tourism, with eco-friendly accommodations and activities becoming increasingly popular among travelers.

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.

For further information on the data displayed, refer to the info button right next to each box.

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 in Southern Europe is experiencing a shift in customer preferences, trends, and local special circumstances that are shaping its development.

Customer preferences: Travelers in Southern Europe are increasingly seeking unique and authentic experiences when choosing their accommodations. This has led to a rise in demand for boutique hotels, eco-friendly properties, and culturally immersive stays. Additionally, there is a growing preference for hotels that offer personalized services and cater to the individual needs of guests.

Trends in the market: In Spain, the Hotels market is seeing a trend towards sustainable practices and eco-friendly initiatives. Many hotels are implementing green technologies, reducing their carbon footprint, and promoting responsible tourism. This aligns with the global movement towards environmental conservation and is attracting environmentally conscious travelers to the region.

Local special circumstances: Italy, known for its rich history and cultural heritage, is witnessing a trend where hotels are refurbishing historic buildings and palaces to offer luxury accommodation options. This unique selling point appeals to tourists looking to immerse themselves in the country's artistic and architectural wonders. The blend of tradition and modernity in these hotels creates a distinct experience for guests.

Underlying macroeconomic factors: Portugal's Hotels market is benefitting from the country's stability and economic growth. With an increase in tourism and foreign investment, there is a growing demand for high-end hotels and luxury resorts in popular destinations like Lisbon and the Algarve region. The stable political environment and infrastructure development further support the expansion of the Hotels market in Portugal.

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.

This report presents a comprehensive analysis and additional information on the Mobility market, in a PDF format.