Hotels industry is one of the major sectors fueling the growth of hospitality sector at the global level. Booming travel and tourism industry is one of the major factors fueling the demand in the hotels industry. In addition, with large number of multinational companies opening their bases globally has also increased the number of business travelers boosting the hotels industry. The major companies in the hotels market are also focusing on improvement of customer service experience there by increasing the number of revisits. Moreover, increasing disposable income and demand for luxurious lifestyle is also boosting the hotels industry. By type, the hotels market has been segmented into 1 Star, 2 Star, 3 Star, 4 Star, 5 Star and unrated among others.
Unstable political environment is one of the major factors restraining the hotels industry. Political stability is one of the major factors behind the success of the travel and tourism industry. The political condition of a country affects its business as well as leisure travel. Furthermore, natural disasters are one of the key factors affecting the hotel industry. Apart from this, increasing popularity of budget hotels in the developed countries of North America and Europe, the major players are focusing on the luxury hotels segment in order to maximize their market presence. Due to the shift in consumer preference toward a luxurious lifestyle, hoteliers are keen on launching new range of luxury hotels across different locations globally which is considered as an opportunity for the hotels industry.
3 Star hotels held the largest market share in the hotels market globally and is expected to remain the market leader throughout the forecast period. However, the unrated segment is expected to be the fastest growing market. Increasing demand in the budget hotels segment is one of the major factors fueling the demand in the unrated segment. Apart from this, 5 Star segment is also having huge growth potential in the hotels market. Increasing number of business travelers and demand for luxurious lifestyle are the major factors boosting the demand in this segment.
North America held the largest market share in the hotels market globally. The U.S. is one of the major markets for hotels in North America. Increasing expenditure on travel and tourism is one of the major factors boosting the growth of the hotel industry worldwide. Furthermore, medical tourism industry has also grown considerably which is also one of the major reason contributing in the positive growth of hotels industry across different regions worldwide. However, Asia Pacific is also one of the major markets for hotels globally. Singapore is the fastest growing market in Asia Pacific. Increasing business travel and aggressive branding strategies adopted by key players are some of the major factors fueling the demand in this region.
Europe is expected to experience sluggish growth in the forecast period. U.K., Germany, France and Italy among others are some of the major countries boosting the hotels market in Europe. UAE is also one of the major markets for hotels in rest of the world. The 4 Star segment held the largest market share in the UAE hotels market. Brazil and Saudi Arabia are some of the other major countries boosting the hotels market in rest of the world.
Some of the major players involved in the hotels market are Hilton Worldwide Holdings Inc. (U.S.), Marriott International, Inc.(U.S.), InterContinental Hotels Group PLC (U.K), Starwood Hotels and Resorts Worldwide (U.S.), Accor Hotels (France), Indian Hotels Company Ltd. (India), ITC Ltd. (India), Jumeirah Group LLC (UAE), Atlantis The Palm Limited (UAE), Four Seasons Holdings Inc. (Canada) among others. Aggressive branding and promotional activities along with geographical expansion and establishing strategic partnership are some of the major business strategies adopted by major players in order to strengthen their foothold globally.
Tourism contributes to a significant chunk of any country’s economy and together with hospitality industry, the hotels market has always been one of most lucrative and consistent revenue generators among all. The World is getting connected by various means and consumers are increasingly spending more on travel, either for work or leisure. These factors, along with several others mentioned below, assure that the hotels market is to expand at a healthy rate over the forecast period from 2015 to 2021.
Not only the elite but even the middle class population is now turning into consumers for the hotels market. This, on one hand, has multiplied traffic for hotels market players but also forced them to cater to consumers with varying budgets and exclusive or non-exclusive facilities such as business centers, conference rooms, swimming pools, child-care, social function services, and others. Innovation in facilities for consumers is the need of the hour and several companies are now resorting to new ideas to brand themselves to secure a competitive edge in the hotels market. However, unpredictable political scenarios, natural disasters, and security issues are hampering the growth of the hotels market globally.
The present report has studied the global hotels market thoroughly, segmenting it on the basis of two important benchmarks; geography and type. On the basis of type, the market is broadly classified into 1-, 2-, 3-, 4-, and 5-star hotels and unrated hotels. By geography, the report divides the market into North America, Europe, Asia Pacific, and Rest of the World.
Hotels Market: Trends and Opportunities
The report finds that the global hotels market is to reach an approximate valuation of US$702.74 bn by the year 2021, significantly up from its 2014 valuation of US$534.02 bn. The report has taken numerous hotels located across key countries and their revenue into consideration to compile accurate estimates about the market’s growth.
Rising mobile bookings and consumer-shared experience on social network are aiding the expansion of the hotels market. The report reveals that the segments of 3-star hotels and unrated hotels are gaining popularity due to the increase in travel and tourism expenditure by the middle class. In 2014, the 3-star segment held the largest share in the global hotels market. Unrated hotels gain immense popularity during peak festive seasons as a significant quantity of population travel across the globe to be with their families or visit any holiday destination. The report also investigates why the hotels market in Asia Pacific is mostly untapped.
Innovations in forming a brand name and offering exclusive facilities are highlighted as important factors that will be driving the hotels market in the future. All the same, the report identifies the fluctuating political scenarios in various countries as a prominent restraint, followed by the growing security concerns and frequent natural disasters around the world. The factors could hinder the market’s growth to an extent.
Hotels Market: Geographical Outlook
The research report picks out UAE as the leading region in the global hotels market with the highest revenue coming from the 4-star hotels segment over the forecast period. The hotels market in North America, specifically in the U.S., has been steadily growing post the economic rebound and will continue to be the largest market for hotels globally through to 2021. Asia Pacific countries such as Singapore, India, China, and South Korea are showing phenomenal expansion in the hotels market, with Singapore noted as the fastest growing market.
The report also notes that growth prospects of the hotels market in Europe are not as bright as they were until a few years ago due to the increasing security concerns. Still, countries such as Germany, France, and Italy will continue to contribute significantly to the overall growth of the European hotels market.
Companies Mentioned in the Report
In order to provide an overview of the competitive landscape, the report profiles some of the leading names in the global hotels market. The entities profiled in this report include: InterContinental Hotels Group Plc, Hilton Worldwide Holdings Inc., Four Seasons Holdings Inc., Marriott International Inc., Starwood Hotels and Resorts Worldwide, Inc., ITC Ltd., Jumeirah International LLC, Accor Group, Indian Hotels Co Ltd., and Atlantis The Palm Limited.
Market Segmentation of the Global Hotels Market is as follows:
Global Hotels Market: By Type
- 1 Star
- 2 Star
- 3 Star
- 4 Star
- 5 Star
Global Hotels Market: by Geography
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Rest of the World
- Saudi Arabia
This report gives you access to decisive data such as:
- Market growth drivers
- Factors limiting market growth
- Current market trends
- Market structure
- Market projections for the coming years
Key highlights of this report:
- Overview of key market forces propelling and restraining market growth
- Up-to-date analyses of market trends and technological improvements
- Pin-point analyses of market competition dynamics to offer you a competitive edge
- An analysis of strategies of major competitors
- An array of graphics and SWOT analysis of major industry segments
- Detailed analyses of industry trends
- A well-defined technological growth map with an impact-analysis
- Offers a clear understanding of the competitive landscape and key product segments