The budget hotels market size has grown strongly in recent years, increasing from $270.43 billion in 2023 to $284.83 billion in 2024 at a compound annual growth rate (CAGR) of 5.3%. This growth is attributed to increased demand for budget-friendly accommodation during economic downturns and uncertainties, a rise in local travel due to pandemic-related restrictions on international travel, the growing popularity of online booking platforms, enhanced quality and variety of amenities offered by budget hotels, and growth in budget-conscious business travelers seeking cost-effective accommodation. The market is expected to continue its strong growth, reaching $351.76 billion by 2028 at a CAGR of 5.4%. Factors driving this growth include the continued preference for budget hotels amid ongoing economic challenges and inflation, an increasing number of digital nomads seeking affordable long-term stays, a continued focus on hygiene and safety standards, attracting budget-conscious travelers, and an increase in solo travelers and backpackers opting for budget-friendly options. Key trends in the forecast period include the implementation of AI-powered customer service, integration of local experiences, stylish and unique budget hotels, technology-driven personalization, and incorporation of wellness amenities such as fitness centers, healthy dining options, and wellness programs.
Global Budget Hotels Market Key Driver
The increasing travel and tourism is expected to propel the growth of the budget hotel market going forward. Travel and tourism refer to the activities of people traveling away from their usual environment for leisure, business, or other purposes, and the industry that supports and facilitates these activities. The demand for travel and tourism is growing due to rising disposable incomes, increased global connectivity, and a growing desire for unique experiences and cultural exploration. Tours and tourism use budget hotels to offer affordable accommodation options for travelers, enhancing accessibility and inclusivity in their travel experiences. For instance, in May 2024, according to the Office for National Statistics, a UK-based national statistical institute, the UK saw a rise in overseas visitors, with 38.0 million trips compared in 2023 to 31.2 million in 2022. These visitors spent $39.95 billion (£31.1 billion), an increase of $5.91 billion (£4.6 billion) from the previous year. Therefore, increasing travel and tourism will drive the budget hotel market.
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Global Budget Hotels Market 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
By Geography:The regions covered in the budget hotels market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
North America was the largest region in the budget hotels market in 2023.
Major Budget Hotels Industry Players
Holiday Inn Express, InterContinental Hotels Group, Whitbread PLC, Choice Hotels International, Extended Stay America Inc., Premier Inn Limited, Travelodge Hotels Ltd, Red Roof Franchising LLC, Oravel Stays Limited, Toyoko Inn Co. Ltd., Econo Lodges of America Inc., B&B HOTELS Group, G6 Hospitality LLC, La Quinta Inns Inc., easyHotel, HotelF1, Future Inns UK Limited, Campanile Ltd, Bannatyne Hotels Limited, IBIS Hotel, Balladins Hotels, Dolby Hotel Liverpool Limited, Days Inns Worldwide Inc.
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Budget Hotels Market Overview
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 2023 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.
