The global hotels market was estimated at USD 485 billion. It is expected to reach USD 590 billion by 2023 with year-on-year growth rate of ~22-26%. With almost every region recovering at different speeds, the industry is driven by travel intensive industries like Manufacturing sector.
Supply Landscape Categorization:
Hotels Market Outlook
Demand for hotels increased throughout 2022. The global spending on business travel is witnessing continuous increase and is expected to surpass the pre-pandemic levels by 2026. With business travel gaining momentum, the demand for hotels is expected to increase throughout the next few years.
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Contactless food ordering, automated check-in via smart phone, contactless payment options, etc., have become the new normal. With huge advancements in technology adoption, hotels are using robots to complete various tasks traditionally performed by humans.
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Corporations are shifting to dynamic/dual pricing models as a part of their hotel negotiation. With dynamic pricing model, corporates can get the lowest competitive room rate, last day cancelation with no penalty, LRA clause, room type guarantee/free upgrade, direct booking, rebates, based on spend level, etc.
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Hotels have been focusing more on adopting new technology to gain trust, as guests have started experiencing safety through technology. Technology, which was considered as a nice-to-have service, has become the determining factor for customer return to hotels.
COVID-19, Russia-Ukraine Crisis, and Economic Headwinds Impact on Hotels
Due to the pandemic restrictions and safety factor, organizations resorted to virtual meetings. Now, most corporations have re-started their travel programs. With the increasing travel cost, corporations are exploring ways to optimize their travel programs and save cost
Hotels Pricing Insights
In 2023, hotels are expected to increase their room rates by about 8 percent from the previous year. Increasing demand and associated operational cost are the major factors for a hotel to increase their rates.
Hotels Supply Outlook
Hotel is a fragmented industry. The market constitutes of global, regional, and independent players, with more than 50 percent of the rooms associated with a global or regional chain. Indirect booking (through a TMC) of a preferred hotel, consisting of a mix of hotel chains and independent hotels, is the prevalent industry practice in hotel sourcing.
With increasing cost and supplier-competition, evolving guest-expectations, hoteliers are embracing sustainability and making it an integral part of the operation.
Regional Market Insights
North America and Europe are considered as the most mature markets. The emerging markets are growing at a significant rate, with the ease of travel restrictions and increase in business travel.
Supplier Intelligence
The category intelligence provides insights on key global and regional players such as Marriott, Hilton, IHG, Accor and Hyatt among others.
