Travel Accommodation Market Size, Share & Industry Analysis, By Type (Hotels, Resorts, Hostels, Vacation Rentals, and Others), By Price Point (Economy, Mid-Range, and Luxury), By Application (Leisure, Professional, and Others), By Mode of Booking (Direct Bookings, Online Travel Agencies, Tour Operators, and Others), and Regional Forecast, 2024-2032

The global travel accommodation market size was valued at USD 786.10 billion in 2023. The market is projected to grow from USD 879.02 billion in 2024 to USD 1.93 trillion by 2032, exhibiting a CAGR of 10.39% during the forecast period.

Travel accommodation includes commercial spaces, such as hostels, resorts, vacation rentals, and hotels, where travelers stay during their trips. These facilities provide travelers with safe and comfortable spaces to sleep and rest. They offer multiple amenities for visitors, including laundry service, massages, toiletries, food service, and parking, and they are also available in various luxurious and budget-friendly options. The increasing opening of new travel accommodations across countries signifies market growth. For instance, in August 2023, jüSTa Hotels & Resorts, an India-based luxury hospitality company, launched its new property, jüSTa Rudra Resort and Spa, in Kolad, Maharashtra, India, covering around a 6-acre area.

The COVID-19 pandemic considerably affected the growth of the global travel accommodation industry, especially in 2020. The novel crisis resulted in the enforcement of lockdowns and other safety measures throughout countries, which led to the closure of accommodation facilities, including hotels, hostels, resorts, vacation rentals, and motels. The tourism industry across countries also significantly declined owing to travel restrictions, which negatively influenced the market.

Travel Accommodation Market Trends

Rising Interest in Exploring New Destinations to Provide Growth Opportunities

The growing trend of visiting attractive destinations, notably among youth globally, fuels demand for accommodation facilities and boosts market growth. The rising consumer disposable income has resulted in individuals spending more on exploring various popular locations across countries, including monuments, heritage sites, natural areas, and beaches. Moreover, traveling to unfamiliar places provides individuals an opportunity to take a break from their busy daily schedule and maintain their mental and physical wellness. Furthermore, the rising Gen Z and millennial population's interest in participating in adventure activities in new locations triggers demand for accommodation services for safe stay during the trip. In recent years, increasing awareness regarding attractive locations and affordable accommodations globally through social media influencers has also supported market expansion.

Travel Accommodation Market Growth Factors

Increasing Online Accommodation Booking to Boost Market Growth

Increasing online booking of accommodation throughout countries is a significant factor driving market growth. Numerous individuals prefer reserving rooms in hotels, hostels, and resorts through online sources, such as hotel websites, online booking platforms, and vacation rental portals, as they provide customers the opportunity to compare prices, easily check availability, and save time. These online booking platforms also emphasize providing promotional discounts and offers on special occasions and holiday seasons. In addition, the launch of new online hotel booking services has escalated the global market expansion. For instance, in September 2022, Flipkart Private Limited, a Bengaluru, India-based e-commerce company, introduced its hotel booking service for international and domestic hotels.

Increasing Number of Travelers Globally to Boost Travel Accommodation Service Demand

The increasing number of individuals traveling for various purposes, including business, holidays, vacations, work meetings, or visiting friends and family, accelerates demand for accommodation services. For instance, according to the UN Tourism, a Spain-based agency under the United Nations promoting tourism, in 2024 (first quarter), nearly 285 million individuals traveled internationally, around a 20% increase from 2023 (same period). The easy availability of multiple affordable transportation options, such as economical flights, trains, and buses, also encourages individuals to travel. Accommodation facilities are a significant part of travel as they provide a comfortable place to stay and enhance the overall experience by offering additional services, such as transportation, Wi-Fi, and spa treatments.

RESTRAINING FACTORS

High Investment Costs to Discourage New Players' Entry

The high cost of real estate, including land and buildings, notably in prime locations, including tourist hotspots, discourages new players' entry into the travel accommodation industry and impedes market expansion. These high costs make it challenging for companies to purchase suitable property for the development of the accommodation facility. Establishing a travel accommodation facility requires other significant investments, including staffing, interior designing, furniture, utilities, and maintenance, which are essential for enhancing the guests' experience. In addition, the development of the overall infrastructure requires substantial design, labor, and material costs that can put financial strain on the new market entrants.

Travel Accommodation Market Segmentation Analysis

By Type Analysis

Easy Accessibility and Multiple Amenities Provided by Hotels to Fuel Segmental Growth

Based on type, the market is segmented into hotels, resorts, hostels, vacation rentals, and others.

The hotels segment is expected to lead the market throughout the forecast period. Hotels are easily accessible as they are typically located in prime locations, such as near transportation hubs and urban areas. In addition, they provide amenities for both business and leisure travelers, such as conference rooms, fine dining, a swimming pool, and a spa. These factors increase traveler’s inclination toward hotels.

The resort segment will grow at the highest CAGR, backed by the increasing number of leisure travelers who prefer to stay in resorts situated in natural settings providing various recreational facilities. In this respect, the increasing preference for resorts for vacation purposes supports segmental expansion.

By Price Point Analysis

High Budget Conscious Travelers’ Preference for Economical Accommodation Supported Segmental Expansion

Based on the price point, the market has been divided into economy, mid-range, and luxury.

The economy segment led the market in 2023 due to benefit gained from the growing middle-class consumers’ preference for economical accommodation facilities. These budget facilities provide basic amenities, such as food and clean rooms, and save the travelers' accommodation costs during trips.

The mid-range segment is expected to grow at a high rate in the coming years owing to rising consumer income levels and changing lifestyles, which increase the preference for more comfortable stays, including services, such as restaurants, swimming pools, and secure parking.

By Application Analysis

Rising Younger Generation's Interest in Adventurous and Recreational Activities to Fuel Leisure Tourism Segment Growth

Based on application, the market is categorized into leisure, professional, and others.

The leisure segment is expected to dominate the market over the forecast period. The increasing number of individuals taking leisure trips for enjoyment and relaxation purposes escalates the segment’s growth. The rising younger generation's interest in adventurous and recreational activities has also fueled leisure tourism in recent years and increased the number of guests in accommodation facilities.

The professional segment is expected to grow at the highest CAGR in the near term owing to increasing business travel across countries. Numerous employees and workers travel to explore new markets, meet clients, and attend business events & conferences, accelerating the segment’s growth.

By Mode of Booking Analysis

Easy Use and Convenience to Increase Travelers' Interest in Online Travel Agencies

Based on the mode of bookings, the market has been divided into direct bookings, online travel agencies, tour operators, and others.

The online travel agencies segment held the largest global travel accommodation market share in 2023. Online travel agencies assist travelers in comparing prices and services provided by various accommodation facilities and help them make informed decisions according to their preferences. Moreover, the easy use and convenience of online travel agencies increase their popularity among consumers and trigger segmental growth.

Direct booking is the second leading segment, driven by the advantages of direct accommodation bookings, such as loyalty rewards and personalized services. Direct bookings also make it easier for travelers to communicate with the service providers if they have any special requirements.

REGIONAL INSIGHTS

Based on geography, the global market is divided into Asia Pacific, North America, Europe, South America, and the Middle East & Africa.

Europe dominated the global market in 2023, backed by rising tourism across European countries, such as France, the U.K., Italy, and Germany. The presence of numerous attractive destinations, including the Eiffel Tower, the Colosseum, the Louvre Museum, and Disneyland Paris, boost tourism across Europe and drives the region’s travel accommodation market growth. For instance, according to the Office for National Statistics, a U.K government department, in June 2022, there were around 3 million visits to the country by overseas individuals, a rise from May 2022 (nearly 2.8 million visits).

The North American market benefits from the increasing number of travelers in countries, such as the U.S. and Canada, which fuels the number of guests across various accommodation facilities. For instance, according to Statistics Canada, a Canada-based government agency’s national travel survey, in 2023 (fourth quarter), Canadian residents took around 74.6 million trips, a rise from 67.6 million trips in 2022 (same quarter).

Growing consumer disposable income in Asian countries and government initiatives to promote tourism for economic growth in countries, including Japan, India, and China, increase the number of visitors and support demand for accommodation facilities across Asia Pacific.

The improved transportation infrastructure and rising trend of visiting new locations, notably among young generations, accelerates the demand for accommodation facilities in South America.

Furthermore, the increasing development of various new accommodation facilities providing multiple luxurious amenities to enhance customer experience throughout the Middle East & Africa triggers regional market expansion.

KEY INDUSTRY PLAYERS

Providing Multiple Amenities to Expand the Customer Base

The global travel accommodation market is highly competitive, with numerous economy, mid-scale, and large-scale players emphasizing providing better services to expand their market share. Key Players offer a wide range of services, including immersive cuisine experiences, to elevate customers' booking experience and expand their customer base. Companies also focus on improving their online booking service, which helps them attract more customers. Market players will likely focus on short-term goals, including penetrating domestic markets and collaborating with reputed travel companies, to stay ahead of the competition.

List of Top Travel Accommodation Companies:

• Marriott International (U.S)


• Hyatt Hotels Corporation (U.S)


• IHG Hotels & Resorts (U.K)


• Emaar Hospitality Group (UAE)


• Accor S.A. (France)


• Awaze Vacation Rentals Ltd (U.K)


• Hilton (U.S)


• OYO Rooms (India)


• Cygnett Hotels & Resorts (India)


• Four Seasons Hotels Limited (Canada)

KEY INDUSTRY DEVELOPMENTS:

• August 2024: Cygnett Hotels & Resorts, an India-based hotel brand, expanded its portfolio with the opening of a new hotel in Sonipat, Haryana, India. The new hotel will cater to both leisure and business travelers.


• June 2024: b0arding.com, a U.S.-based vacation rental and hotel booking platform, added over two million vacation rentals and hotels to its portfolio.


• June 2024: InterGlobe Aviation Limited, an India-based airline, launched its hotel booking service on its application and website. The launch will assist the company in targeting customers looking for hotel booking services.


• April 2024: Manga Hotel Group, a Canada-based hospitality development and investment company, collaborated with Sukhdev Toor, a Canadian hotelier, to launch a new hotel, TOOR Hotel, in Canada. The new hotel will include 232 rooms, a fitness center, a yoga studio, parking, a bar, and meeting spaces.


• October 2023: OYO Rooms, an India-based hospitality chain, announced the addition of 750 hotels under its brands, including Palette, Collection O, and Townhouse. The company’s focus markets for the new hotels include Goa, Jaipur, Mussoorie, Nainital, Udaipur, Shimla, and Mount Abu.

REPORT COVERAGE

The global travel accommodation industry report analyzes the market in-depth and highlights crucial aspects such as prominent companies, types, price points, modes of bookings, and applications. Besides this, the market research report provides insights into the global travel accommodation market trends and highlights significant industry developments. In addition to the aspects mentioned earlier, the report encompasses several factors contributing to the market's growth over recent years.

Report Scope & Segmentation