The Independent Lodgings Market is estimated to be valued at USD 281.7 billion in 2025 and is projected to reach USD 800.0 billion by 2035, registering a compound annual growth rate (CAGR) of 11.0% over the forecast period.

The boutique hotel market in the United States is set to explode between 2025 and 2035, thanks in part to the increasing consumer friends for distinct, personalized, unique, and experiential travel lodging. A new generation of boutique hotels rose to meet this demand, with their thoughtful design, carefully curated experiences and prioritization of the destination’s culture.

As per Cognitive Market Research's latest published report, the Global Hotel market size was $XX Billion in 2024 and it is forecasted to reach $1,126.04 Billion by 2030. Hotel Industry's Compound Annual Growth Rate was 5.29% from 2023 to 2030.

North America held largest share of XX% in the year 2024 
Europe held share of XX% in the year 2024 
Asia-Pacific held significant share of XX% in the year 2024 
South America held significant share of XX% in the year 2024
Middle East and Africa held significant share of XX% in the year 2024 

Market Dynamics: Key Drivers

The growing hospitality industry has resulted in a rising number of restaurants and driving the market for Hotels

The growing hospitality industry, particularly the rising number of restaurants, is a significant driver for the hotel market, creating a symbiotic relationship where the success of one often fuels the growth of the other. Hotels with diverse and high-quality in-house dining options offer immense convenience to guests. Travelers, whether on business or leisure, appreciate not having to leave the hotel premises to find a good meal. A wide range of dining choices caters to different tastes and dietary needs, making the hotel more attractive.

Additionally, beyond overnight guests, excellent restaurants attract residents, drawing foot traffic to the hotel. This creates a vibrant atmosphere and can position the hotel as a culinary destination, even for those not staying there. This "staycation" trend or local patronage contributes to the hotel's overall revenue and brand visibility. The concept of a "staycation" involves locals opting for a short, leisure break in their own city or a nearby area, often seeking a blend of relaxation and indulgence. Hotels with strong F&B offerings are perfectly positioned to capture this market. Locals might book an overnight stay simply to enjoy the hotel's spa, pool, and, crucially, its high-quality restaurants and bars without the hassle of long-distance travel. This trend surged during the pandemic and has since solidified as a preferred leisure activity.

https://www.digigoyatra.com/blog/why-staycations-are-becoming-the-new-travel-trend-in-india

Market Restraint

The intensifying competition in the industry hinders the growth of the Hotel Market

The market is highly competitive, not only among traditional hotel chains, independent, boutique, but also increasingly with the rise of short-term rental platforms, like Airbnb. These alternatives offer diverse experiences and price points, putting pressure on traditional hotels. This has led to higher consumer expectations than ever for personalized experiences, seamless technology, exceptional service, and value for money, forcing businesses to constantly innovate and invest.

Moreover, to cater to the needs of a wide range of customers, large hotel chains constantly launch new sub-brands for instance, Marriott has launched numerous brands like Moxy, Element, and Autograph Collection to target increasingly niche traveler segments. This means more options for consumers within the same loyalty program, but also more direct competition for individual hotel properties.

In conclusion, intensifying competition, fueled by the rise of alternative accommodations, ever-increasing guest expectations, and pervasive price transparency, is a formidable restraint on the hospitality market. It forces hotels to constantly evolve, invest, and differentiate themselves not just on price, but crucially, on the quality of the experience they deliver. Introduction to the Hotel Market

Hotels have existed since very ancient times to serve merchants and other travelers. A hotel is a managed building or establishment that provides guests with a place to stay overnight, on a short-term basis, in exchange for money. The precise features and services provided to guests can vary quite drastically from one hotel to another.

The growth of the global hotel industry is primarily attributed to a strong resurgence in both leisure and business travel post-pandemic, fueled by rising global disposable incomes and a burgeoning middle class, particularly in emerging economies. This increased affluence and a desire for experiences lead to higher demand for diverse accommodation types, from luxury hotels to boutique stays and short-term rentals.

https://www.revfine.com/hotel-industry/

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United States Hospitality Market size was valued at USD 223.93 Billion in 2024 and is projected to reach USD 250.45 Billion by 2032, growing at a CAGR of 4.87% from 2025 to 2032.

United States Hospitality Market Dynamics

The key market dynamics that are shaping the United States hospitality market include:

Key Market Drivers

Growing Demand for Unique and Personalized Experiences: There is a rising demand for tailored and personalized services in the hospitality industry. Travelers increasingly seek unique experiences that cater to their individual preferences, driving the need for custom-made packages, bespoke services, and immersive local experiences. According to the American Hotel & Lodging Association, 70% of consumers consider personalization an essential factor when choosing accommodation and services.

Rise in Domestic and International Travel: With the easing of pandemic-related restrictions, there has been a sharp increase in both domestic and international travel.

The India Hospitality Market Segmented by Type (Chain Hotels, Independent Hotels, and Others), Accommodation Class (Luxury, Mid & Upper-Mid-Scale, and Others), Booking Channel (Direct Digital, Online Travel Agencies (OTAs), and Others), Geographic Region (North India, West India, and Others). The Market Forecasts are Provided in Terms of Value (USD).

The US hospitality market, a significant segment of the global industry, is projected to experience robust growth over the forecast period (2025-2033). With a global market size of $235.96 billion in 2025 and a Compound Annual Growth Rate (CAGR) of 4.87%, the US market, representing a substantial portion of this global figure, is expected to follow a similar trajectory, driven by several key factors. Increased domestic and international tourism, fueled by economic growth and rising disposable incomes, is a primary driver. The burgeoning popularity of experiential travel and the growing demand for unique accommodations beyond traditional hotels, including service apartments and boutique hotels, are also contributing significantly. Furthermore, strategic investments in infrastructure and technological advancements in hospitality management systems are enhancing operational efficiency and guest experience, further bolstering market expansion. However, external factors such as economic downturns, geopolitical instability, and fluctuating fuel prices could potentially restrain growth. The market is highly segmented, with chain hotels maintaining a dominant share, alongside a significant presence of independent hotels catering to niche markets. Within the segmentation by type of accommodation, budget and economy hotels see strong growth driven by price-conscious travelers, while luxury hotels continue to attract high-spending clientele. Within the US context, the competitive landscape is fiercely contested, with major players like Marriott International, Hilton Worldwide, and Airbnb vying for market share. These established brands leverage their extensive networks, strong brand recognition, and loyalty programs to maintain dominance. However, the emergence of innovative hospitality models and the rise of online travel agencies (OTAs) continue to challenge the traditional market structure. The increasing preference for personalized experiences and sustainable tourism practices is impacting hotel operations and investment strategies. A successful future in the US hospitality market will hinge on adapting to evolving consumer preferences, incorporating technology effectively, and demonstrating a commitment to sustainability. The forecast period is likely to see further consolidation through mergers and acquisitions, alongside the entry of new players offering innovative services and accommodations. Therefore, understanding these dynamic market forces is crucial for investors and stakeholders to navigate the future of the US hospitality sector effectively. Recent developments include: September 2023: IHG Hotels & Resorts opened a new Holiday Inn property in South Philadelphia following a conversion and renovation. Located minutes from Philadelphia International Airport and within walking distance of the city’s primary sports and entertainment facilities complex (which includes Lincoln Financial Field, Citizens Bank Park, and Wells Fargo Center), Holiday Inn Philadelphia Airport Stadium Area delivers a convenient, comfortable, and welcoming experience appropriate for the “City of Brotherly Love.”, August 2023: Wyndham Hotels & Resorts and LuxUrban Hotels Inc., a leading hotel operator with a growing portfolio of nearly two dozen assets in key urban markets across the United States, announced a newly signed deal to bring 16 LuxUrban hotels, representing approximately 1,400 rooms, into the Trademark Collection by Wyndham brand.. Key drivers for this market are: Growing Tourism Increasing Demand for Hospitality Services, Consistent Demand for Business Travel and Corporate Hospitality Services. Potential restraints include: Growing Tourism Increasing Demand for Hospitality Services, Consistent Demand for Business Travel and Corporate Hospitality Services. Notable trends are: US Hotel Occupancy Soars, Fueled by Diverse Factors and Economic Uptick.

Global hotels market size was USD 1,376.40 billion in 2023 and is expected to increase to USD 2,993.90 billion by 2032 at a CAGR of 9.14%.

The global beach hotels sector remains highly competitive, with multinational hotel chains, regional players, and boutique resorts competing for market share. Large hospitality groups dominate through strategic acquisitions, digital transformation, and premium offerings, while boutique and eco-friendly resorts attract guests with unique experiences and sustainability initiatives.

Market Share by Key Players

The Canadian hospitality industry, a significant contributor to the national economy, is experiencing robust growth, mirroring global trends. While precise Canadian market figures for 2019-2024 are unavailable, extrapolating from the global CAGR of 5.27% and considering Canada's strong tourism sector and robust domestic travel, we can estimate substantial growth. The industry is segmented by hotel type (chain vs. independent) and service level (budget/economy, mid-scale, luxury, service apartments). The increasing popularity of budget and mid-scale hotels caters to price-conscious travelers, while the luxury segment continues to attract high-spending clientele. Key drivers include increasing disposable incomes, a rise in domestic and international tourism, and significant investments in infrastructure development, particularly in major cities like Toronto, Vancouver, and Montreal. However, challenges exist, including seasonal fluctuations in tourism, increasing operating costs (labor and energy), and the ongoing impact of global economic uncertainty. The industry's response includes diversification of offerings (e.g., incorporating sustainable practices, enhancing technology integration), and strategic partnerships to attract and retain both employees and guests. The competitive landscape includes both international and domestic players such as Marriott, Hilton, and smaller independent chains and boutique hotels, each vying for market share through differentiated service offerings and branding. The forecast for the Canadian hospitality industry from 2025 to 2033 is positive, predicated on continued economic growth and sustained tourism. We anticipate a CAGR similar to or slightly exceeding the global average, reflecting Canada's attractive tourism appeal and proactive industry adaptations. The increasing demand for unique travel experiences and sustainable tourism will likely influence future investment decisions and create new opportunities within the sector. Further growth will depend on factors including government policies that support the tourism industry, effective management of labor costs, and the successful navigation of environmental sustainability concerns. Analyzing specific regional variations within Canada (e.g., Atlantic Canada vs. Western Canada) would provide a more granular understanding of market opportunities and potential challenges within specific geographic areas. Recent developments include: January 2024 - APA Hotel Canada Inc., a wholly owned subsidiary of Coast Hotels Limited, is one of the fastest-growing hotel brands in North America and one of the largest hotel brands in Canada. Coast Hotels announced the opening of two brand new franchise properties, Eldorado (a Coast Hotel) and Midnight Sun (a Coast Hotel), in the historic and vibrant downtown area of Dawson City, Yukon, Canada., July 2023 - Wyndham Hotels & Resorts, the global leader in hotel franchising with over 9,100 hotels in more than 95 countries, announced the addition of 60 new hotels to its fast-growing extended stay brand Echo Suitssm, including what is set to be the brand's first Canadian hotels.. Key drivers for this market are: Rising Awareness among Hotels & Resorts to Implement Eco-Friendly Measures, Rising Mobile Reservations & Contactless Check-In/Out. Potential restraints include: Rising Awareness among Hotels & Resorts to Implement Eco-Friendly Measures, Rising Mobile Reservations & Contactless Check-In/Out. Notable trends are: The Increase in Tourist Arrivals and Hotel Occupancy also Results in an Increase in Spending.

Key players such as Conrad Maldives Rangali Island (Underwater Villas), The Float House River Kwai in Thailand, and Sunborn London have secured a strong market position through unique water-based hospitality concepts. These industry leaders command nearly 40% of the market by leveraging high-end branding, strategic partnerships with travel agencies, and exclusive guest experiences.

Global Independent Boutique Hotel Market is segmented by Application (Boutique_ Luxury_ Resort_ Eco-friendly_ Urban), Type (Hospitality_ Leisure Travel_ Hotel Chains_ Luxury Accommodation_ Destination Marketing), and Geography (North America_ LATAM_ West Europe_Central & Eastern Europe_ Northern Europe_ Southern Europe_ East Asia_ Southeast Asia_ South Asia_ Central Asia_ Oceania_ MEA)

The Austria Hospitality Market Report is Segmented by Type (Chain Hotels, Independent Hotels), Accommodation Class (Luxury, Mid & Upper-Mid-Scale, Budget & Economy, Service Apartments), Booking Channel (Direct Digital, Otas, Corporate/MICE, Wholesale & Traditional Agents), and Geography (Vienna, Lower Austria, Upper Austria, Salzburg, Tyrol, Rest of Austria). The Market Forecasts are Provided in Terms of Value (USD).

The global luxury hotel and resort market is a dynamic sector characterized by significant growth potential. While precise figures for market size and CAGR aren't provided, a reasonable estimation, considering the presence of major international players and consistent demand for high-end travel experiences, would place the 2025 market size at approximately $150 billion. A conservative Compound Annual Growth Rate (CAGR) of 5% for the forecast period (2025-2033) is plausible, driven by factors such as increasing high-net-worth individuals, a growing preference for experiential travel, and the ongoing expansion of luxury hotel brands into new, emerging markets. Key trends include the rise of sustainable luxury tourism, personalized experiences tailored to individual guest preferences, and the integration of technology to enhance guest services and operational efficiency. The segment demonstrating the highest growth is expected to be the "$300 to $800/night" category, driven by a wider appeal to affluent travelers seeking a balance between luxury and affordability. However, restraints include economic fluctuations impacting discretionary spending, geopolitical instability influencing travel patterns, and the increasing competition within the luxury hospitality sector. Regional distribution of the market is likely skewed toward North America and Europe initially, followed by a substantial increase in the Asia-Pacific region driven by a rapidly expanding middle class. The success of individual companies within the luxury hotel and resort market hinges on their ability to adapt to evolving consumer preferences and effectively differentiate their offerings. Branding and reputation are crucial, with established names like Marriott, Hilton, and Four Seasons maintaining a strong market presence. The emergence of independent boutique hotels and unique, experience-driven properties further segments the market, requiring players to invest heavily in service quality, technology integration, and personalized customer experiences to stand out. Future growth will be propelled by innovative approaches to sustainability, personalized wellness programs, and technologically advanced amenities catering to the increasingly discerning expectations of the luxury travel market. Effective marketing strategies emphasizing exclusivity and unique experiences will also play a vital role in attracting and retaining a loyal clientele in this competitive market.

[228+ Pages Report] The global luxury hotel market size was valued at USD 95.11 billion in 2021 and is expected to reach USD 160.48 billion by 2028, growing at a CAGR of 4.95% during the forecast period (2022- 2028)

Mexico Hospitality Market size was valued at USD 26 Billion in 2024 and is projected to reach USD 46 Billion by 2032, growing at a CAGR of 7.74% from 2025 to 2032.Growing International Tourism Recovery and Expansion: Mexico has had a spectacular recovery and rise in international travel, which is fuelling the expansion of the hotel sector. According to the Mexican Ministry of Tourism (SECTUR), international tourist arrivals will reach 38.3 million in 2023.Increasing Domestic Tourism and Business Travel: Domestic tourism has emerged as a key driver of Mexico's hospitality market growth. Domestic tourists took 260 million journeys within Mexico in 2023, up 28% from 2019.Investment in Tourism Infrastructure and Hotel Development: Significant expenditures in tourism infrastructure and hotel construction are fuelling market expansion. The National Fund for Tourism Development (FONATUR) reports an investment of USD 8.2 billion in tourism infrastructure projects between 2020 and 2023.

The Hospitality Real Estate Market Report is Segmented by Property Type (Hotels, Resorts & Spas, Others), by Type (Chain Hotels, Independent Hotels), by Asset Class (Affordable/Budget, Midscale, Luxury), and by Geography (North America, South America, Europe, Middle East and Africa, Asia-Pacific). The Market Forecasts are Provided in Terms of Value (USD).

The European luxury hotel market is experiencing robust growth, projected to reach a market size of €35.36 billion in 2025, exhibiting a Compound Annual Growth Rate (CAGR) of 5.14% from 2019 to 2033. This expansion is driven by several key factors. Increased high-net-worth individual (HNWI) tourism across Europe fuels demand for premium accommodations. A rising preference for unique and personalized travel experiences, coupled with a growing emphasis on sustainability and wellness within the hospitality sector, further contributes to market growth. The increasing popularity of experiential travel, encompassing curated activities and exclusive services, significantly impacts the luxury segment. Furthermore, strategic investments by major hotel chains like Accor, IHG, Hyatt, Hilton, Marriott, and others in renovating existing properties and developing new luxury brands cater to the evolving preferences of discerning travelers. Competitive pricing strategies and innovative marketing campaigns also play a crucial role in attracting and retaining luxury clientele. However, the market faces certain challenges. Economic fluctuations impacting discretionary spending and potential geopolitical instability can influence travel patterns. Increased competition from boutique hotels and independent luxury establishments necessitates continuous innovation and adaptation. Moreover, maintaining high service standards and addressing sustainability concerns remain crucial for long-term success within the highly competitive luxury hotel sector. The ongoing development of technology focused on personalized guest experiences and efficient operations is critical for optimizing profitability and market share. Analyzing regional variations in demand and adapting strategies accordingly will also be vital for maximizing return on investment within this lucrative market. Key drivers for this market are: Increasing Disposable Income, Rising Tourism and Travel Trends. Potential restraints include: Increased Competition from Alternative Accommodation Such as Vacation Rentals, Stringent Regulations and Taxation Policies. Notable trends are: Growing Focus Toward Sustainability is Driving the Market.

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Vietnam Hotel Market Size 2025-2029

The Vietnam hotel market size is forecast to increase by USD 5.33 billion, at a CAGR of 21.1% between 2024 and 2029.

The global hotel market is experiencing significant growth, driven by increasing affordability and rising disposable income levels among consumers. This trend is particularly evident in emerging economies, where the middle class is expanding and travel is becoming more accessible. Mobile check-in and hospitality technology enhance the guest experience, while big data analysis drives revenue optimization and cost control. Furthermore, the application of social media and internet penetration continues to transform the industry, enabling real-time bookings and customer engagement. However, the market faces challenges as well. Climate change and unexpected weather developments pose significant risks, leading to cancellations and operational disruptions.
Hotel operators must adapt to these dynamics by investing in sustainable practices and implementing robust risk management strategies. To capitalize on market opportunities and navigate challenges effectively, companies must stay agile and responsive, leveraging technology and data analytics to optimize operations and enhance the customer experience.

What will be the size of the Vietnam Hotel Market during the forecast period?

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In the dynamic hotel market, service quality continues to be a top priority, with environmental sustainability gaining significant attention. Disaster preparedness and operational excellence are essential for ensuring guest safety. Social media marketing and email campaigns foster brand awareness and loyalty. Energy efficiency and corporate social responsibility are key components of brand image. Online reputation management, review monitoring, and automated services are crucial for maintaining a positive guest journey.
Data analytics, customer relationship management, and digital transformation shape the industry's future. Cloud computing, voice assistants, and virtual concierge services streamline operations and improve guest personalization. Search engine optimization and paid advertising boost visibility, while security measures protect against cyber threats. Employee engagement and keyless entry systems contribute to operational efficiency and guest satisfaction.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Application

  Tourist accommodation
  Official business


Type

  Chain hotels
  Independent hotels


Service

  Service apartments
  Mid and upper mid-scale hotels
  Budget and economy hotels
  Luxury hotels


Geography

  APAC

    Vietnam

By Application Insights

The tourist accommodation segment is estimated to witness significant growth during the forecast period. In the tourism industry, accommodation continues to dominate with a significant revenue share in 2024. The market is driven by both domestic and international travelers, with the latter holding a substantial impact. International tourism in Vietnam experienced a remarkable recovery, attracting approximately 17 million visitors in 2024, marking a 39.5% increase from the previous year. This increase contributed to a total revenue of 34,440 million USD. The government's initiatives to boost tourism activities have been instrumental in this growth. Customer experience is a crucial factor influencing travel decisions. Hoteliers focus on various aspects such as room types, customer segmentation, pricing strategies, and guest services to cater to diverse traveler needs.
Property management systems and hotel management systems facilitate operational efficiency and revenue management. Independent and budget hotels cater to different market segments, while luxury hotels and hotel chains offer premium experiences. Technology plays a pivotal role in the hospitality sector. Mobile apps, social media, and online travel agencies provide convenience and personalized services to guests. Artificial intelligence and yield management systems help optimize pricing and inventory. Meeting rooms and fitness centers cater to business and family travelers, respectively. Competitor analysis and channel management are essential for maintaining a competitive edge. Loyalty programs and guest relationship management ensure repeat business and positive guest feedback. Staff training and operational efficiency are vital for delivering excellent guest satisfaction. Global distribution systems and digital marketing expand reach and visibility. Hoteliers adopt various strategies, from room types and pricing to technology and guest services, to cater to diverse traveler needs and preferences. The market continues to evolve, with

Wholesale Rate Management for Hotels Market Outlook

According to our latest research, the Global Wholesale Rate Management for Hotels market size was valued at $1.2 billion in 2024 and is projected to reach $3.8 billion by 2033, expanding at a robust CAGR of 13.4% during the forecast period of 2024–2033. The primary factor propelling the growth of the Wholesale Rate Management for Hotels market globally is the increasing need for dynamic pricing strategies and automated rate optimization tools, as hotels strive to maximize revenues and remain competitive in an increasingly digital and interconnected hospitality landscape. The proliferation of online travel agencies, global distribution systems, and meta-search platforms has further heightened the necessity for sophisticated rate management solutions, making this market a focal point for innovation and investment over the coming decade.

Regional Outlook

North America commands the largest share of the Wholesale Rate Management for Hotels market, accounting for approximately 38% of the global revenue in 2024. This dominance is largely attributed to the region’s mature hospitality sector, early adoption of advanced hotel technology solutions, and the presence of major hotel chains that invest heavily in revenue management systems. The regulatory environment in North America, particularly in the United States, favors technological innovation and digital transformation, creating fertile ground for the deployment of cloud-based and AI-driven rate management platforms. Furthermore, North American hotels benefit from robust IT infrastructure and a highly competitive market, which incentivizes continuous upgrades in rate management practices to maintain profitability and market share.

The Asia Pacific region is poised to be the fastest-growing market, with a projected CAGR of 16.2% from 2024 to 2033. This accelerated growth is driven by rapid urbanization, a booming tourism industry, and significant investments in hospitality infrastructure across countries like China, India, Thailand, and Indonesia. The increasing penetration of digital booking channels and the emergence of tech-savvy travelers are compelling hotels in the Asia Pacific to adopt advanced wholesale rate management solutions. Additionally, government-led initiatives to promote tourism, coupled with the rise of domestic and international travel, are encouraging both independent hotels and large chains to modernize their pricing and inventory management systems, thereby fueling market expansion in the region.

Emerging economies in Latin America, the Middle East, and Africa are witnessing gradual adoption of Wholesale Rate Management for Hotels solutions, albeit at a slower pace compared to developed regions. Challenges such as limited access to high-speed internet, budget constraints, and a lack of awareness regarding the benefits of automated rate management tools have hindered widespread implementation. However, as these regions experience growth in inbound tourism and global hotel brands expand their footprint, localized demand for efficient pricing and inventory management is expected to rise. Policy reforms aimed at boosting tourism and digitalization, along with increasing foreign direct investment in the hospitality sector, are likely to create new opportunities for market players in these emerging economies.

Report Scope

Snapshot img

According to Technavio analysts, the tourism and hotel market share in China is expected to increase by USD 24.23 billion from 2021 to 2026 at a CAGR of 11.81%. This research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches.

The tourism and hotel market in China report extensively covers market segmentation by the following:

Type - Outbound tourism and inbound tourism 
Product - Chain hotels and independent hotels 

The tourism and hotel market vendors in China that are studied and compiled in this report include Beijing Zhiyuan International Travel Agency Co. Ltd., Emei Shan Tourism Co. Ltd., Expedia Group Inc., Guangdong International Hotel Management Holdings Ltd., Huangshan Tourism Development Co. Ltd., Huazhu Group Ltd., InterContinental Hotels Group PLC, Intrepid Group Pty Ltd., Jin Jiang International Holdings Co. Ltd., Jinmao China Hotel Investments and Management Ltd., Marriott International Inc., Shangri La Asia Ltd, The Dragon Trip., Tongcheng Travel Holdings Ltd., Trip.com Group Ltd., TUI AG, and Tuniu Corp among others.

What will the Tourism and Hotel Market Size in China be During the Forecast Period?

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Tourism and Hotel Market in China: Key Drivers, Trends, and Challenges

The increasing preference for local and authentic experiences is notably driving the tourism and hotel market growth in China, although factors such as outbreak of covid-19 may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the tourism and hotel industry in China. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Tourism and Hotel Market Drivers in China

One of the key factors driving the tourism and hotel market growth in China is the increasing preference for local and authentic experiences. 
The tourists are focusing more on exploring local communities and their cultures, which are considered one of the most critical aspects of the tourism and hotel market in China.
The tourists also prefer:

  Buying local products instead of souvenirs 
  Undertaking adventure trips in public transport instead of taxis
  Having dinner in a restaurant that uses zero-kilometer ingredients, including local, low-impact primary ingredients, such as meat, cheese, and honey.


This new form of tourism is expected to become popular among tourists as they are becoming more aware of the environmental impact of tourism.
Such factors are expected to fuel the market growth during the forecast period. 

Key Tourism and Hotel Market Trends in China

Growing Internet access and online testimonials is one of the key China tourism and hotel market trends that is expected to impact the industry positively in the forecast period.
The Internet provides consumers with all the essential information related to travel and hotels besides customer-generated reviews through testimonials. For instance;

  As of January 2020, TripAdvisor Inc., a popular website for travel reviews, had an average of around 500 million visitors/month.
  Booking.com provides users with booking options depending on the type of trip they wish to take. In 2020, the website had over 65 million guest reviews.


The Internet provides direct access to destination images and videos, reviews, weather reports, maps, and guides.
These factors are expected to further support the market in focus in the forecast years.

Key Tourism and Hotel Market Challenges in China

One of the key challenges to the tourism and hotel market growth in China is the outbreak of covid-19.
The closure of international borders, international flight cancellations, and lockdowns led by COVID-19 negatively affected the tourism and hotel market in China.
According to the Ministry of Culture and Tourism of China (MCT), in the first half of 2020, domestic tourism demand decreased by 77% in China as compared to 2019.
The zero-tolerance toward the virus even in 2021, when other countries such as the US accepted COVID-19 as an endemic, further decelerated the growth rate.
These factors may impact the revenue growth of the market, which is another challenge for the tourism and hotel market in China during the forecast period.

This tourism and hotel market in China analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Parent Market Analysis

Technavio categorizes the tourism and hotel market in China as a part of the