The travel accommodation market size has seen robust growth in recent years, projected to expand from $655.75 billion in 2023 to $713.44 billion in 2024, reflecting a compound annual growth rate (CAGR) of 8.8%. This growth can be attributed to the emerging trend of traveling for experiences, the expanding reach of online booking platforms, increasing disposable income, improved earning capacity, and growth in the hotel industry. Looking ahead, the travel accommodation market is expected to continue its strong growth trajectory, forecasted to reach $1,010.94 billion in 2028 at a CAGR of 9.1%. Contributing factors include growth in international business tourism, a high demand for vacation hotels, increasing tourism and social engagement, a rising aging population with early retirement, and heightened participation in outdoor activities. Major trends driving this forecast period include the adoption of smart hotel technologies, the development of eco-friendly accommodations, the rise of the experience economy, tech-enabled transformations, and an increase in vacation rentals.
Major Driver In The Travel Accommodation Market
The growth of international business tourism is anticipated to significantly enhance the travel accommodation market in the near future. International business tourism includes cross-border travel for purposes such as meetings, corporate events, and conferences. This sector's growth is driven by factors like globalization, economic growth, trade agreements, corporate expansion, and the rise of remote work and hybrid business models. Travel accommodations are crucial for international business tourism, providing convenient and comfortable lodging options that allow business travelers to focus on their professional commitments. For instance, in May 2024, the Office for National Statistics Census, a UK-based government agency, reported that UK residents made 6.3 million international business trips in 2023, an increase from 4.9 million in 2022. This upward trend indicates the growing significance of business travel in the current global economy. Therefore, the expansion of international business tourism is driving growth in the travel accommodation market, with further developments expected through 2024 and into 2028.
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Travel Accommodation Market Competitive Landscape
Major companies operating in the travel accommodation market are Alibaba Group Holding Limited, American Airlines Inc., Marriott International Inc., MGM Resorts International, Radisson Hotel Group, Expedia Group Inc., JetBlue Airways Corporation, Hilton Worldwide Holdings Inc., Airbnb Inc., Hyatt Hotels Corporation, Accor S.A., InterContinental Hotels Group plc, Hays Travel Limited, Shanghai Jin Jiang International Hotels (Group) Company Limited, Tripadvisor Inc., Choice Hotels International Inc., Wyndham Destinations, The Ascott Limited, Oravel Stays Private Limited, Vrbo, Red Lion Hotels Corporation, eLong Inc., A&O Hotels and Hostels GmbH, Rewe Group, Tuniu Corporation
Key Travel Accommodation Market Trend
Major companies in the travel accommodation market are emphasizing technological advancements, such as AI-driven booking platforms, to gain a competitive edge. These platforms utilize artificial intelligence (AI) to enhance and streamline the booking of travel accommodations and related services, delivering more efficient, personalized, and user-friendly experiences. For example, in March 2024, Bag2Bag, an India-based hospitality company, launched India’s first generative AI online hotel booking platform. This platform features unique capabilities, such as instant room allocation based on user preferences and real-time pricing adjustments according to demand. It also offers personalized recommendations and seamless booking experiences, significantly reducing the time needed for users to find and book accommodations. These innovations enhance customer satisfaction and optimize hotel resource management, resulting in higher occupancy rates and improved revenue management.
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Global Travel Accommodation Market Segmentation
The travel accommodation market covered in this report is segmented –
1) By Type: Hotels, Hostels, Resorts, Vacation Rentals, Other Types
2) By Price Point: Economy, Mid-Range, Luxury
3) By Mode Of Booking: Direct Booking, Online Travel Agency, Other Modes Of Booking
4) By Application: Leisure, Professional, Other Applications
By Geography:The regions covered in the travel accommodation 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 travel accommodation market in 2023.
The Travel Accommodation Global Market Report 2024 furnishes information about the global travel accommodation market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.
