Travel accommodation market to reach $893 billons globally
Increase in global tourism, high-end developments in corporate travel industry, and rise in the inclination among consumers to shift from product to experience fuel the growth of the global travel accommodation market
Allied Market Research published a report, titled, "Travel Accommodation Market by Type (Hotels, Hostels, Resorts, Vacation Rentals, and Others), Application (Leisure, Professional, and Others), Price Point (Economy, Mid-range and Luxury), and Mode of Booking (Online Travel Agency, Direct Bookings, and Others): Global Opportunity Analysis and Industry Forecast, 2019–2026." According to the report, the global travel accommodation industry garnered $632.8 billion in 2018, and is estimated to reach $893 billion by 2026, growing at a CAGR of 4.50% from 2019–2026. The report also provides a detailed analysis of the drivers & opportunities, top investment pockets, top winning strategies, market size & estimations, competitive landscape, and wavering market trends.
Drivers, restraints and opportunities-
Rise in global tourism, developments in corporate travel industry, and surge in the inclination among consumers to shift from product to experience drive the growth of the global travel accommodation market. On the other hand, increase in incidence of forgery and fluctuating fortunes for destinations restrain the growth to some extent. However, innovation through artificial intelligence and eco-friendly accommodations for solo travelers are expected to create lucrative opportunities in the near future.
The hotel segment to lead the trail by 2026
Based on type, the hotel segment contributed to around three-fifths of the global tourist accommodation market revenue in 2018 and is expected to retain its dominance during 2019–2026. The fact that hotels provide short-term paid accommodation, meals, and other facilities according to the exact needs of travelers and tourists has propelled the growth of the segment. The vacation rental segment, on the other hand, is projected to grow at the fastest CAGR of 6.7% throughout the estimated period. Increase in the drift toward renting large homes enables to lower the cost of accommodation which is appealing to budget-cost travelers. Also, booming tourism business in emerging markets has fueled the growth.
The leisure segment held the largest share in 2018
Based on application, the leisure segment garnered the largest share in 2018, holding nearly two-thirds of the global tourist accommodation market. This is attributed to increase in the number of travelers who travel for the purpose of relaxation, leisure, entertainment, recreation, religious reasons, visiting relatives and friends. The same segment would also showcase the fastest CAGR of 5.0% till 2026.
Europe, followed by North America, to rule the roost in terms of revenue-
Based on Geography, Europe, followed by North America, accounted for nearly two-fifths of the global tourist accommodation market share in 2018 and is expected to dominate during the study period. In terms of both inbound and outbound tourism, Europe has now topped the list among all the other continents. For this reason, there are a growing number of new investors emerging in the European travel accommodation market. Simultaneously, the Asia-Pacific region would register the fastest CAGR of 20.7% through 2019–2026. International inbound tourist arrivals have grown exponentially over the last five decades. This strong momentum has created a huge positive influence on the travel accommodation sector in the region.
Leading market players
Hyatt Hotels Corporation
Radisson Hotel Group
Hilton Worldwide Holdings Inc.
Red Lion Hotels Corporation
Accor Hotels Group