How Is The Global Budget Hotels Market Defined?
Budget hotels are affordable accommodation options that offer basic amenities and services at lower prices compared to mid-range or luxury hotels. They cater to cost-conscious travelers, providing essential comforts such as clean rooms, free Wi-Fi, and often breakfast, without the frills of higher-end hotels.
Budget Hotels Global Market Report 2024 provides data on the global budget hotels market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The budget hotels market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.
How Are The Global Budget Hotels Market Size And Growth Rates Projected To Evolve?
The budget hotel market has experienced consistent growth, expanding from $270.43 billion in 2023 to $284.83 billion in 2024 at a CAGR of 5.3%. Growth drivers include increased demand for affordable accommodations during economic uncertainties, local travel growth due to pandemic restrictions, enhanced online booking platforms, better amenities, and cost-conscious business travel. The market is expected to reach $351.76 billion by 2028 at a CAGR of 5.4%, supported by inflation-driven cost-consciousness, growth in digital nomadism, solo travelers, and long-term stays. Key trends include AI-powered customer service, integration of local experiences, stylish budget hotels, technology-driven personalization, and wellness amenities such as fitness centers and healthy dining options.
What Are The Essential Drivers Behind The Growth Of The Budget Hotels Market?
The increasing demand for travel and tourism is expected to boost the budget hotel market. Travel and tourism encompass a wide range of activities, including leisure, business, and cultural exploration, all of which are supported by the industry. The growing demand for travel is driven by rising disposable incomes, improved global connectivity, and a desire for new experiences. Budget hotels cater to this demand by offering affordable accommodation options that make travel more accessible and inclusive. For example, the UK saw a significant rise in overseas visitors in 2023, with 38 million trips made, a 22% increase from the previous year. This growth in travel and tourism is fueling the budget hotel market.
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How Is The Global Budget Hotels Market Divided Into Key Segments?
The budget hotels market covered in this report is segmented –
1) By Type: Business Hotels, Airport Hotels, Suite Hotels, Serviced Apartments, Resorts
2) By Amenities: Free Wi-Fi, Parking, Airport Shuttle, Breakfast
3) By Price Range: Economy, Mid-Range, Luxury
4) By Mode Of Booking: Online Travel Agency, Hotel Websites, Direct Booking, Other Modes Of Booking
5) By Application: Private, Commercial, Government
What Trends Are Reshaping The Future Of The Budget Hotels Market?
Budget hotel operators are leveraging large language model technology to enhance customer service and streamline operations. These advanced AI systems process vast data to deliver personalized interactions. In June 2023, Booking Holdings Inc., a U.S.-based travel service provider, introduced an AI Trip Planner. Integrated into the Booking.com app, the tool allows users to refine searches, receive tailored recommendations, and create comprehensive travel itineraries with real-time updates, simplifying the booking process.
What Is The Fastest Growing Region In The Budget Hotels Market?
North America was the largest region in the budget hotels market in 2023. The regions covered in the budget hotels market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
