02-Feb-2023 | Facts and Factors
According to Facts and Factors, the global travel accommodation market size was worth around USD 646 billion in 2021 and is predicted to grow to around USD 1161 billion by 2030 with a compound annual growth rate (CAGR) of roughly 12.59% between 2022 and 2030.
Travel accommodation is a crucial part of the travel industry as it is one of the major areas of expense for any traveler. Even the travel accommodation unit chosen is dependent on the length of the stay but in a way, it remains a priority amongst guests of all types including regular travelers or professional guests. There are certain factors that visitors keep in mind before booking any type of travel accommodation. The first and foremost influencing factor is the comfort offered by the unit. Most often than not, time spent in hotels or guest houses is more than the time taken to travel itself.
Browse the full “Travel Accommodation Market Size, Share, Growth Analysis Report By Price Point (Mid-Range, Economy, and Premium), By Type (Hostels, Hotels, Vacation Rentals, Resorts, and Others), By Booking Mode (Direct Booking, Online, Travel Agency, and Others), By Application (Professional, Leisure, and Others), and By Region - Global and Regional Industry Insights, Overview, Comprehensive Analysis, Trends, Statistical Research, Market Intelligence, Historical Data and Forecast 2022 – 2030" report at https://www.fnfresearch.com/travel-accommodation-market
Hence comfort lies at the top of the checklist of the potential traveler. The price point of the stay greatly impacts the final decision of the customer. Some guests may be on tight budgets and hence they may choose from the economical staying units. To make the whole trip more cost-effective some travelers choose the book to stay in advance as their prices are cheaper as compared to the one booked closer to the date of travel.
The global travel accommodation market is projected to grow owing to the changing lifestyle amongst the population. As per multiple surveys and research reports, the way of living amongst a large part of society has changed completely since the pandemic. This changing mindset is expected to help the global market grow as people are inclined to spend more money on traveling activities to gain experience or for a small break from their regular daily life.
A recent survey concluded that almost 2 in every 10 people are planning to go on a domestic trip in the coming few months. The global market may further benefit from the increasing globalization and movement of people across borders for business purposes. Companies are willing to spend more on employees with high potential to help them train or give them higher exposure to how the business works. Other factors like the growing availability of various modes of travel making locations in remote regions more accessible along with the emergence of economical airlines rendering air travel accessible to all.
The global market is projected to witness a dip in revenue due to the ongoing Russia-Ukraine war as international borders become unsafe for traveling. Other countries are also facing similar situations where the political scenario is not friendly for international travelers. Many people completely avoid traveling to countries like North Korea, parts of African continents, and isolated islands due to different types of unpleasant situations.
The growing number of eco-friendly travel accommodations may provide growth opportunities while increasing cyber-attacks may act as a major challenge.
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Segmental Overview
The global travel accommodation market is segmented based on price point, type, booking mode, application, and region
Based on type, the global market divisions are hostels, hotels, vacation rentals, resorts, and others. The global market registered the highest growth in the hotel segment since these units are a preferred choice amongst travelers as they offer higher comfort and overall experience. Hotels fall in the category of flexible price points as guests can find satisfactory hotels ranging from economic price points to luxury prices. Increasing the use of technology to enhance the customer experience may further drive segmental growth in the coming years. Hilton Worldwide Holdings Inc generated a revenue of USD 5.8 billion in 2021.
Based on application, the global market segments are professional, leisure, and others. The year 2021 was dominated by the leisure segment owing to the ‘revenge travel’ trend which emerged after borders were opened for traveling purposes. So many people were housed in small apartments during 2020 which encouraged them to travel as much as possible once the authorities allowed them to do so. Goa, a popular tourist destination in India is expected to make USD 914.2 billion from tourism in 2022-2023.
Regional Overview
North America is anticipated to lead with the highest CAGR in the global travel accommodation market due to the presence of high-income groups in countries like the USA and Canada. Growth in Europe may be propelled by the growing tourism in the country. European nations are some of the most preferred tourist destinations due to their rich culture and architecture. Asia-Pacific may register a high CAGR due to the growing number of students traveling to other countries for studies.
In 2022, the number of Chinese students that went abroad went up by 6% as compared to the number in 2021. 40 million Chinese students are estimated to be located in foreign territories for studies. High revenue in the Middle East is expected to result from the increasing number of people traveling to the United Arab Emirates, Saudi Arabia, and Abu Dhabi for tourist or professional reasons.
Report Scope
Report Attribute |
Details |
Market Size in 2021 |
USD 646 Billion |
Projected Market Size in 2030 |
USD 1161 Billion |
CAGR Growth Rate |
12.59% CAGR |
Base Year |
2021 |
Forecast Years |
2022-2030 |
Key Market Players |
Wyndham Destinations, Hyatt Hotels Corporation, A&O Hotels and Hostels GmbH, Hilton Worldwide Holdings Inc., Radisson Hotel Group, Marriott International, Oyo Rooms., Red Lion Hotels Corporation, Accor Hotels Group, Airbnb Inc., and others. |
Key Segment |
By Price Point, Type, Booking Mode, Application, and Region |
Major Regions Covered |
North America, Europe, Asia Pacific, Latin America, and the Middle East &, Africa |
Purchase Options |
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Competitive Landscape
The global travel accommodation market is led by players like Wyndham Destinations, Hyatt Hotels Corporation, A&O Hotels and Hostels GmbH, Hilton Worldwide Holdings Inc., Radisson Hotel Group, Marriott International, Oyo Rooms., Red Lion Hotels Corporation, Accor Hotels Group, and Airbnb Inc.
Recent Developments:
- In October 2022, OYO, a hotels and homes company, allowed registered hotels to launch their set of promotional ads for the Indian market
- In May 2022, Cofounder of the AxisRooms launched Tiniva, an application especially designed for the hospitality service industry
The global travel accommodation market is segmented as follows:
By Price Point
- Mid-Range
- Economy
- Premium
By Type
- Hostels
- Hotels
- Vacation Rentals
- Resorts
- Others
By Booking Mode
- Direct Booking
- Online
- Travel Agency
- Others
By Application
- Professional
- Leisure
- Others
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