22-Sep-2022 | Facts and Factors
According to Facts and Factors, the global hospitality market size was worth around USD 3953 billion in 2021 and is predicted to grow to around USD 6716.3 billion by 2028 with a compound annual growth rate (CAGR) of roughly 10.24% between 2022 and 2028.
Hospitality is the relationship shared between a host & guest and is applied to the food & beverages sector, along with hotels and the tourism industry which are a part of the broader service sector involving a host that provides different services to its consumers in return for goodwill or monetary gains. Even though there is no generally accepted date defining the start of the hospitality segment, it has been in existence for centuries, undergoing revolution depending on the services offered and the demands of the consumers. The goal of the personnel working in the hospitality segment is to provide an enjoyable experience to their customers, and they are well taken care of. Being a part of the service industry, it is most important for working professionals to exhibit qualities like empathy, willingness to provide, and patience. Hospitality is one of the most promising global markets and is projected to reach newer heights in the coming years. Businesses working in the hospitality sector are required to follow standard protocols when it comes to hygiene and safety maintenance since ignorance of these aspects lead to a severe loss of life and money.
Browse the full “Hospitality Market Size, Share, Growth Analysis Report By Ownership (Standalone and Chain), By Type (Accommodation Services, Non-Residential, and Food & Beverages Services), and By Region - Global and Regional Industry Insights, Overview, Comprehensive Analysis, Trends, Statistical Research, Market Intelligence, Historical Data and Forecast 2022 – 2028" report at https://www.fnfresearch.com/hospitality-market
Covid-19 caused a major dip in the global market size since it was one of the first sectors to be directly impacted by the virus. The closure of domestic and international borders, as well as long prevailing travel bands, coupled with restrictions on people sitting in eateries, and functioning only partially, were some of the main reasons that led to downward revenue during 2020 and the beginning of 2021. As listed by Forbes, the global tourism industry was down by USD 935 billion as a result of the pandemic.
The global hospitality market is projected to grow during the forecast period driven by various exhaustive and strategic activities undertaken by market players to increase consumer databases. These strategies involve collaborating with domestic players or online travel agencies, and information technology (IT) firms to help them deliver better customer experience. For instance, in 2021, Blackstone Group, a private investment banking company, took Hilton Worldwide private in a deal of USD 20.5 billion in an all-cash leveraged buyout. All of the outstanding common stock was bought at USD 47.5. The global market cap may also benefit from the tourism industry which has started to pick up pace with the opening of all international and domestic borders and ease of travel, which is further aided by the digitization of the travel industry, leading to increased ease of access to information.
The growing number of unpleasant personnel in the segment may restrict the global market growth while increasing the use of technology in hospitality is expected to provide excellent market expansion opportunities. However, issues with online bookings are major challenges to overcome during the global market growth trend.
The global hospitality market is segmented based on type, ownership, and region.
Based on type, the global market segments are accommodation services, non-residential, and food & beverage services. The market is led by accommodation and food & beverages services with both contributing almost equally to the global market revenue. As estimated, the Indian hotel industry amassed revenue of INR 1.3 lakh crore in the fiscal year 2020-2021.
Based on ownership, the global market is segmented into standalone and chain. The global market generated the highest revenue from the chain segment which deals with multiple units, franchise or corporate, of the same brand. For instance, all eateries of Mcdonald's, a fast-food center operating in almost all parts of the world, are an example of chain units under the ownership of a single brand name. By the end of June 2022, Mcdonald's generated a 12-month revenue of USD 23.59 billion as per official records.
Europe is anticipated to generate the highest revenue in the global hospitality market with the travel and tourism industry leading the regional revenue. European nations travel more frequently than other nations. These travel trips are a combination of business and personal travel. Owing to the high cost of living in EU territories, the tourism industry generated more revenue than other frequently visited places. In 2018, more than 82.8 million people visited Spain, amassing a revenue of 89.9 billion euros.
The market cap in North America is projected to be driven by the United States, as a result of the growing number of international students and working professionals migrating to various cities in the country. Between 2019-2020, more than 1075,400 international students were known to have enrolled for studies in the US, which represents around 4.6% of the country’s total student population.
Report Scope
Report Attribute |
Details |
Market Size in 2021 |
USD 3953 Billion |
Projected Market Size in 2028 |
USD 6716.3 Billion |
CAGR Growth Rate |
10.24% CAGR |
Base Year |
2021 |
Forecast Years |
2022-2028 |
Key Market Players |
Aramark corporation, Chipotle, Marriott International, Starbucks, Compass Group plc, McDonald's., and others. |
Key Segment |
By Ownership, Type, and Region |
Major Regions Covered |
North America, Europe, Asia Pacific, Latin America, and the Middle East &, Africa |
Purchase Options |
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The global hospitality market is led by players like Aramark corporation, Chipotle, Marriott International, Starbucks, Compass Group plc, and McDonald's.
Recent Developments:
- In March 2022, Indian Hotels Company (IHCL) collaborated with EHL Education Group, Switzerland, and the Confederation of Indian Industry (CII) to provide professional degree courses for hospitality students
- In September 2021, Azore raised around €815 million as an investment in the hospitality fund
The global hospitality market is segmented as follows:
By Ownership
By Type
- Accommodation Services
- Non-Residential
- Food & Beverages Services
By Region
- North America
- Europe
- France
- The UK
- Spain
- Germany
- Italy
- Nordic Countries
- Benelux Union
- Belgium
- The Netherlands
- Luxembourg
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Australia
- South Korea
- Southeast Asia
- Indonesia
- Thailand
- Malaysia
- Singapore
- Rest of Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
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