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Hospitality Market Size, Share Global Analysis Report, 2022 – 2028
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
Industry Insights
[226+ Pages Report] According to the report published by Facts 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. The report analyzes the global hospitality market drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the hospitality market.
Market Overview
Hospitality is a definition of the relationship shared between a host and a guest. The process involves the reception of the guest by the host in exchange for some form of goodwill, while also dealing with aspects like providing services and entertainment. Hospitality falls under the broad umbrella of the service industry, which is a tertiary sector of the economy, and includes food & beverages, stay, travel, theme parks, hotels, and event planning amongst others. As per the definition by the Cambridge Business English Dictionary, the hospitality industry mainly consists of food and hotel services. In French, Italian, Dutch, German and Romanian, the industry is referred to as Hotel/Restaurant/Cafe (HoReCa), however, it is not as broad as the hospitality industry covered under American legislation.
Key Insights
- As per the analysis shared by our research analyst, the global hospitality market is estimated to grow annually at a CAGR of around 10.24% over the forecast period (2022-2028).
- In terms of revenue, the global hospitality market size was valued at around USD 3953 billion in 2021 and is projected to reach USD 6716.3 billion, by 2028. Due to a variety of driving factors, the market is predicted to rise at a significant rate.
- Based on ownership segmentation, the chain was predicted to show maximum market share in the year 2021
- Based on type segmentation, food & beverages services were the leading source in 2021.
- On the basis of region, Europe was the leading revenue generator in 2021
Covid-19 Impact
The global market cap growth was severely impacted during the pandemic. It is one of the first industries to register losses from the start of the pandemic until the end of 1st quarter of 2021, which is when most of the travel borders opened up allowing passengers to visit other regions and undertake services offered in the hospitality segment. Even though the global market is still recovering from the losses, it is projected to grow with substantial revenue in the coming years.
Growth Drivers
Growing accessibility to hospitality-related services to propel market growth
The global hospitality market is projected to grow owing to the increasing accessibility amongst the general population to undertake hospitality services. The rise in adoption rate is driven by multiple factors like an increase in disposable income, an increase in the standard of living, and the emergence of food & hotel services for every budget, ranging from low-end to exclusive centers, thus accommodating all consumer segments. Until a few years ago, taking a leisure trip or a long vacation, with hotel stays, and other related services were unaffordable by a large section of end-consumers but with growing globalization, industrialization, and a steady increase in per capita income, more people are now able to afford these services. For instance, the average gross domestic product income in Australia between 1960 and 2021 was USD 38766.31 while the amount reached USD 58781.05 in 2019, which was an all-time high.
Restraints
- Growing number of unpleasant personnel in the segment to restrict the market growth
One of the key factors that contribute to the global market cap is the people involved in the process, a part of technology, and services. Since these factors are only as good as the people handling them. However, with an increasing number of people who may not necessarily have the right skills to be part of such an important sector demanding excellent personal traits, finding a position in the sector is a major restraining factor as it tends to discourage customers from using the services of a particular unit in case of a bad experience.
Opportunities
- Growing use of technology in hospitality to provide excellent market expansion opportunities
The global hospitality market size is projected to benefit from the growing adoption of technology to better services offered at hospitality centers like hotels, cafes, restaurants, and others. For instance, a recent survey concluded that the average spending by hoteliers on technology is 4.59% of the total revenue. Even though, as per official data, IT spending in hotels has currently decreased by 50%, it is estimated that such cost-cutting will lead to further lower revenues since top-notch IT services are important to facilities operating in the hospitality market.
Challenges
- Issues with online bookings are major challenges to overcome during the market growth trend
One of the major factors for the global market to overcome is the rising incidences of issues during online bookings or reservations leading to severe unpleasant situations. The only to tackle this problem is to upgrade the information technology (IT) structure operated by the facility to eliminate any errors due to its malfunction.
Segmentation Analysis
- The global hospitality market is segmented based on ownership, type, and region.
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
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.
Recent Developments:
- In January 2022, Marriott hotels and Ori, an architecture and robotics startup, entered a collaboration to work together under Marriott’s design lab to enable customer experience transportation and reimagine space. The collaboration will entail the use of Ori’s products in the hotel’s guest rooms to allow travelers adaptability and flexibility with new room environments
- In June 2021, hospitality giants OYO, EaseMyTrip, Airbnb, and Yatra announced the collaborative launch of CHATT, with the aim to boost Indian tourism. Chatt is a new hotel and hospitality industry association made of market leaders as well as small-scale hoteliers.
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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Regional Analysis
- Europe to lead market growth in the coming years
The global hospitality market is projected to be dominated by Europe in the coming years majorly driven by the travel and tourism industry. European countries like Spain, Portugal, Netherlands, and the United Kingdom amongst others are some of the most traveled countries owing to the historic places found in these regions. The tourism industry in the EU is known to contribute over 3.8% of the total turnover while generating more than 782 billion euros in revenue in 2018. It contributes more than 10% of the European GDP. North America is projected to grow at a high CAGR, with the United States leading the regional revenue owing to the presence of giants in the hospitality industry. New York, one of the most expensive cities in the world, attracted more than 66 million visitors in 2019. Even during the pandemic, the number was more than 20 million. The Middle-East revenue may be contributed by the growing tourism industry in the UAE as well as a large number of pilgrims visiting the country of Saudi Arabia every year, which hosted more than 1 million pilgrim goers in 2022.
Competitive Analysis
- Aramark corporation
- Chipotle
- Marriott International
- Starbucks
- Compass Group plc
- McDonald's
The global hospitality market is segmented as follows:
By Ownership
- Standalone
- Chain
By Type
- Accommodation Services
- Non-Residential
- Food & Beverages Services
By Regional Segment Analysis
- North America
- The U.S.
- Canada
- Mexico
- Europe
- France
- The UK
- Spain
- Germany
- Italy
- Nordic Countries
- Denmark
- Sweden
- Norway
- 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
Table of Content
Industry Major Market Players
- Aramark corporation
- Chipotle
- Marriott International
- Starbucks
- Compass Group plc
- McDonald's
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