The global revenue in the 'Hotels' segment of the travel & tourism market was forecast to continuously increase between 2024 and 2029 by in total 85.5 billion U.S. dollars (+20.05 percent). After the ninth consecutive increasing year, the revenue is estimated to reach 511.91 billion U.S. dollars and therefore a new peak in 2029. Notably, the revenue of the 'Hotels' segment of the travel & tourism market was continuously increasing over the past years.Find other key market indicators concerning the average revenue per user (ARPU) and number of users. The Statista Market Insights cover a broad range of additional markets.

In 2023, revenue of the hotel market in the United States reached 106.1 billion U.S. dollars. This was forecast to continuously increase between 2024 and 2029.Find other key market indicators on the number of users and user penetration.

This statistic shows the revenue of the United States hotel industry from 2001 to 2018. In 2018, the revenue of the hotel industry in the U.S. reached 218 billion U.S. dollars.

U.S. hotel industry key performance indicators

To measure the performance of the hotel industry sector three basic benchmark figures are commonly used:

• Occupancy rate

• Average daily rate (ADR)

• Revenue per available room (RevPAR)

The occupancy rate denotes the percentage of hotel rooms that are rented out at a given time of all the hotel rooms that are available. In 2018, the average occupancy rate of the U.S. hospitality industry was at 66.2 percent, this was the highest seen since 2001.

The average daily rate (ADR) shows the average rate at which hotel rooms were paid. It is calculated by dividing total rooms revenue by the number of rooms that were occupied. In 2018, the average ADR of hotel rooms in the U.S. reached 129.83 U.S. dollars. In the Americas region, the average daily rate was relatively stable throughout the year.

Revenue per available room (RevPAR) is a measure of utilization in the hotel industry and can be calculated by multiplying the average daily rate of a property (market) by its occupancy rate. The average RevPAR of hotels in the United States was 85.96 U.S. dollars in 2018.

As per Cognitive Market Research's latest published report, the Global Hotel market size was $784.82 Billion in 2023 and it is forecasted to reach $1,126.04 Billion by 2030. Hotel Industry's Compound Annual Growth Rate will be 5.29% from 2023 to 2030. What are the key driving factors for the Hotel market?

The Rising Investment in the Global Hotel Industry is Favoring the Market Growth

The year 2022 was a year that started with the reopening of many international borders and huge amounts of government economic stimulus. However, the outbreak of Ukraine-Russia war was a growing geopolitical tension. Despite all these challenges, the global hotel and lodging industry continues to show resilience as RevPAR (Revenue Per Available Room) towards complete recovery). For instance, according to the data of the Global Hotel Investment Outlook 2023, at the year end of 2022, the proportion of RevPAR recovered relative to that of 2019 by region ranged from 69% to 108%. Additionally, in the period of seven years before COVID-19, outbound Chinese capital for the global hotel investment accounted for USD 3.4 billion every year. From the year 2020 to 2022, the outbound Chinese hotel investment has been about USD 400.0 million.

The transaction activities in the hotel industry had been witnessed to be increased than before. For instance, according to the research of Jones Lang LaSalle IP, Inc. (JLL) and Global Hotel Investment Outlook 2023, two of the three global regions (the Americas and the APAC) observed an increased hotel investment volume in 2022. Moreover, private equities continue to be the largest acquirers of hotel assets globally. In the year 2022, there had been witnessed a significant increase in new investors entering the hotel industry. In fact, a 16% of the year’s global investment volume in hotel industry was generated by the first-time hotel buyers.

In the year 2022, there was a decline in investment volume, and same can be expected in 2023, owing to large portfolios might be challenging to finance. There can likely be a bifurcation in hotel acquisitions as luxury hotels will be continuing to sell for high values. In addition, in 2022, foreign investors deployed capital not only towards individual hotel assets but also into large-scale platforms, especially in the luxury space. For instance, in the third quarter of 2022, Saudi Arabia’s Public Investment Fund (PIF) entered into partnership with London-based investment firm Cian International to invest about USD 900 million into the Aman Group, valuing the ultra-luxury platform over USD 3 billion.

The Accelerating Global Travel and Tourism Fueled the Demand for Hotels, Drives the Market Growth

The Availability of Alternative Accommodation Places such as Short Term Rental Homes, Hostels, and Others May Hamper the Market Growth(Access Detailed Analysis in the Full Report Version)


The Rising Popularity of Ultra-Luxury Segment Generates an Opportunity for Expansion of the Market.(Access Detailed Analysis in the Full Report Version)

What is a Hotel?

A hotel is the most common type of accommodation, which can be defined as an establishment that offers overnight accommodation, meals, and various other services. Hotels are mainly aimed/targeted at tourists or travelers, although the local residential can also use hotels. Hotels is a segment categorized under the hospitality and tourism sector. Different hotels possess a wide range of accommodations ranging from budget motels to luxury resorts. Hotel industry consists of lodging places, event planning, theme parks, restaurants, and others, and it includes various activities such as facility maintenance & direct operations including porters, servers, housekeepers, kitchen keepers, bartenders, and many more. The global hotel industry is exhibiting a positive growth after COVID-19. For instance, according to the data of Global Hotel Investment Outlook, 2023, the hotel occupancy has reached 89% recovery as compared to that of 2019, thereby, proving its resilience.

Hotel Revenue Management System Market Outlook

The global hotel revenue management system market size is projected to experience significant growth over the years, with estimations indicating a climb from USD 2.4 billion in 2023 to approximately USD 5.6 billion by 2032, reflecting a compound annual growth rate (CAGR) of 9.8%. This remarkable growth can be attributed to several factors, including the increasing adoption of technology-driven solutions in the hospitality industry, a growing emphasis on optimizing operational efficiency, and the rising need for data-driven decision-making processes. As the hospitality sector continues to evolve, the role of hotel revenue management systems becomes increasingly critical in ensuring competitive advantage and profitability.

One of the primary growth factors for the hotel revenue management system market is the continuous technological advancements in the hospitality sector. The adoption of artificial intelligence, machine learning algorithms, and big data analytics has revolutionized how hotels manage their revenue streams. These technologies enable hoteliers to predict demand patterns more accurately, optimize pricing strategies, and enhance guest experiences, thereby driving revenue growth. Moreover, the integration of these advanced technologies into revenue management systems allows hotels to tailor their services to meet the ever-changing needs of their guests, ensuring personalized experiences and higher customer satisfaction, which in turn enhances brand loyalty and repeat business.

Another critical driver for the market is the growing competition in the hospitality industry, which necessitates the adoption of sophisticated revenue management systems. With an increasing number of hotels entering the market, hoteliers are under pressure to maximize their revenue and maintain profitability. Revenue management systems provide a strategic approach to revenue optimization by analyzing various factors such as market demand, competitor pricing, and booking patterns. By leveraging these insights, hotels can implement dynamic pricing strategies, optimize room inventory, and improve their sales and marketing efforts. This results in increased occupancy rates, higher average daily rates, and ultimately, enhanced revenue performance.

Furthermore, the rising importance of data-driven decision-making processes in the hospitality sector is also propelling the growth of the hotel revenue management system market. In an era where data is considered the new oil, hotels are increasingly relying on data analytics to gain valuable insights into their operations and customer preferences. Revenue management systems equipped with powerful analytics tools enable hoteliers to make informed decisions based on real-time data, allowing them to identify trends, assess market conditions, and adjust their strategies accordingly. This data-driven approach not only helps hotels stay ahead of the competition but also ensures efficient resource allocation and improved financial performance.

From a regional perspective, North America currently dominates the hotel revenue management system market, owing to the high concentration of luxury and high-end hotel chains in the region. The increasing prevalence of advanced technologies and the presence of key market players contribute to the region's strong market position. However, the Asia Pacific region is expected to witness the highest growth rate during the forecast period, driven by the rapid expansion of the hospitality sector in countries such as China, India, and Southeast Asian nations. This growth is further fueled by the rising disposable incomes of the middle-class population and the increasing demand for travel and tourism in the region.

Component Analysis

The hotel revenue management system market is primarily segmented by component into software and services. Within this segment, the software component is anticipated to hold a significant share, driven by the increasing demand for sophisticated and efficient management solutions that can optimize hotel operations and boost revenue. Advanced software solutions offer features such as dynamic pricing, demand forecasting, and real-time analytics, which are essential for the effective management of hotel revenues. These software solutions are continuously being enhanced with new capabilities, such as AI-driven insights and automation features, which are attracting more hotel operators to invest in such systems.

On the other hand, the services component within the hotel revenue management system market also plays a crucial role in supporting

The revenue in the 'Hotels' segment of the travel & tourism market in the Netherlands was forecast to continuously increase between 2024 and 2029 by in total 704.4 million U.S. dollars (+18.74 percent). After the ninth consecutive increasing year, the revenue is estimated to reach 4.5 billion U.S. dollars and therefore a new peak in 2029. Notably, the revenue of the 'Hotels' segment of the travel & tourism market was continuously increasing over the past years.Find other key market indicators concerning the revenue growth and average revenue per user (ARPU). The Statista Market Insights cover a broad range of additional markets.

According to Cognitive Market Research, the global Budget Hotels market size will be USD 284582.6 million in 2024. It will expand at a compound annual growth rate (CAGR) of 5.00% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 113833.04 million in 2024 and will grow at a compound annual growth rate (CAGR) of 3.2% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 85374.78 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 65454.00 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.0% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 14229.13 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.4% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 5691.65 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.7% from 2024 to 2031.
The Business Travelers held the highest Budget Hotels market revenue share in 2024.

Market Dynamics of Budget Hotels Market

Key Drivers for Budget Hotels Market

Growing Urbanization to Increase the Demand Globally

In many areas, there is a rapid growth in travel inside and between cities as a result of urbanization. Urban budget hotels draw guests searching for reasonably priced overnight options in handy locations. Secondary sources estimate that about one-third of India's population resided in cities in 2023. People have moved from rural areas to the metropolis in search of employment and a means of subsistence, as seen by the trend, which indicates an increase in urbanization of more than 4% over the past ten years. Thus, the increasing urbanization is expected to propel the market growth during the forecast period.

Growing Investment to Propel Market Growth

The increasing investment in the industry is expected to drive the market over the projected period. For instance, in June 2023, in conjunction with the 2023 NYU International Hospitality Industry Investment Conference, Marriott International, Inc. declared its intention to extend its presence in the inexpensive midscale accommodation sector, building on its recent foray into the market through City Express by Marriott in Latin America. Marriott is announced intentions to establish a new brand, which is now known as Project MidX Studios and has not yet been given a name. This move is in line with the company's strategy to provide visitors with locally relevant lodging solutions for every purpose of their stay. The goal of the budget-friendly midscale extended stay brand is to provide guests looking for longer-term lodging in the United States and Canada with competitively priced modern comfort.

Restraint Factor for the Budget Hotels Market

Intense Competition and Changing Consumer Preference to Limit the Sales

There are many competitors in the highly competitive budget hotel market that provide identical services at similar price points. Individual operators' profit margins may be lowered by price wars resulting from this rivalry. Furthermore, because budget hotels concentrate on offering simple, uncomplicated services, it can be difficult to satisfy the demands of contemporary tourists who are looking for distinctive and customized experiences. Some guests may decide to book alternate lodging options like boutique hotels, vacation rentals, or Airbnb as a result of this change in tastes.

Impact of Covid-19 on the Budget Hotels Market

The COVID-19 epidemic has significantly impacted the market for low-cost hotels, affecting all facets of its demand and operations. Lockdowns, travel restrictions, and a generalized fear of getting the virus caused occupancy rates to drop precipitously. Long stretches of minimal or no occupancy negatively impacted the revenue of many low-cost hotels. Furthermore, low-cost hotels suffered significant revenue losses as a result of the sharp decline in tourists. Many hotels faced financial pressure and, in some cases, irreversible closures as a result of their inability to cover operating costs due to a decline in passenger volume. Introduction of the Budget Hotels Market

Budget hotels, also known as value hotels or economy h...

According to Cognitive Market Research, the global Hotel Management market size will be USD 3625.2 million in 2024. It will expand at a compound annual growth rate (CAGR) of 6.00% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 1450.08 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.2% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 1087.56 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 833.80 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.0% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 181.26 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.4% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 72.50 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.7% from 2024 to 2031.
The Solo category is the fastest growing segment of the Hotel Management industry

Market Dynamics of Hotel Management Market

Key Drivers for Hotel Management Market

The market is being enhanced by the increasing incorporation of mobile applications to provide visitors with convenience

Hotel management systems are currently in the process of swiftly integrating mobile applications to improve the visitor experience, personalization, and communication with hotel staff. This enables hoteliers to enhance the guest experience and to gain insight into the preferences, revenue streams, and operational effectiveness of their visitors. Hotels can offer a wide range of services to their visitors, such as room appointments, dining reservations, and concierge assistance, through the use of mobile applications. Additionally, these applications assist hotels in the collection of data regarding visitor preferences and behaviors, which enables them to identify current trends and modify their marketing campaigns and promotions. In general, the incorporation of mobile applications into hotel administration systems represents a significant milestone in the hotel industry, as it results in increased visitor satisfaction, operational efficiency, and revenue growth.

The market would be stimulated by the emergence of an online booking trend

Global hotel management systems market growth is experiencing substantial demand from consumers due to the increase in the number of OTAs (Online Travel Agencies) and direct online bookings. A hotel management system is a centralized system that facilitates the reservation process across multiple channels and provides real-time availability, thereby reducing the risk of overbooking. This trend emphasizes the increasing necessity for accommodations that facilitate the seamless integration of efficient digital solutions that can simplify the booking process from various online sources. This type of system not only enhances the efficacy of operations but also provides valuable information that assists in providing better service to guests regarding room availability. The robust nature of reservation management systems is imperative in ensuring optimal occupancy rates and maximum revenue potential, which is a result of the significant role that online platforms play in the hospitality industry for appointments.

Restraint Factor for the Hotel Management Market

The market is confronted with an increasing number of cyber security threats

The managing of sensitive visitor information, including personal data and payment details, presents data security challenges for hotel management systems. Despite the fact that the cyber landscape is becoming more problematic due to security threats, safeguarding this data presents significant challenges that require strict adherence to data protection regulations and security protocols. The necessity of implementing dependable security measures in hotel administration systems is underscored by the growing number of cyber threats. These measures are crucial for safeguarding visitor data in the areas of privacy, security, and data availability, thereby reducing the likelihood of unauthorized access or data breaches. Furthermore, the hospitality sector is required to a...

COVID-19 restrictions decimated the industry in 2020-21, bringing an end to a robust period of revenue growth for UK hotels thanks to a weak pound attracting international tourists and more Britons indulging in domestic retreats. Despite a strong tourism rebound, adverse economic conditions and elevated operating costs have constrained revenue and profit growth since 2022-23. Hotels’ revenue is expected to contract at a compound annual rate of 1.4% over the five years through 2024-25 to £24.1 billion, including an estimated 0.2% drop in 2024-25. Social distancing and lockdown measures resulted in hotels closing for a large chunk of 2020-21. Travel restrictions sunk international tourism, dissipating revenue, despite some support from staycations. Revenue surged in 2021-22 and 2022-23 due to the removal of COVID-19 restrictions and pent-up demand for holidaying, though it remained below pre-pandemic levels. The return of international tourists boosted recovery, while an increasing number of UK consumers opted for staycations. In 2023-24 and 2024-25, resilient tourism levels continue to support revenue. However, the lingering financial effects of the cost-of-living squeeze, poor weather and waning domestic demand are holding revenue down. Inbound tourism has continued to recover well in the two years through 2024-25, supporting revenue growth. The popularity of short-term rentals, including listings on Airbnb, Vrbo and Booking, is luring consumers away from hotels. The digital revolution is transforming the industry's operations, with online travel agents allowing independent hotels to target a broader customer base but also imposing commissions. These competitive pressures, combined with higher operating costs amid severe inflationary pressures and labour shortages, has weighed on the average profit margin. Hotels’ revenue is forecast to expand at a compound annual rate of 2.4% over the five years through 2029-30 to £27.2 billion. Growing tourism numbers, particularly international visitors, and improving confidence and disposable incomes will drive revenue growth. VisitBritain forecasts a record 43.4 million inbound visits to the UK in 2025. Platforms like Airbnb will continue to threaten hotels, though potential new regulations on short-term rentals may weaken this. Hotels will invest in technology and facilities to meet growing consumer preferences for unique experiences, wellness and sustainability. Severe staff shortages and tax hikes will continue to keep wage costs high, while intense competition will pressure prices, restricting profit growth.

The revenue of the hotel market in Europe saw significant growth in 2023, reaching an estimated 111 billion U.S. dollars. This figure improved greatly over 2020 and 2021, when the European hotel market was hit hard by the coronavirus (COVID-19) pandemic. When looking at the forecast revenue of this market, it was predicted to see year-over-year growth from 2024 onwards.

Before the pandemic, hotels and motels benefited from rising incomes and population growth. However, hotel rooms were left empty when the pandemic shut down tourism, creating long-lasting financial and operational challenges. Long periods at home left consumers with savings and pent-up demand to spend on trips as travel restrictions lifted, leading to a rapid recovery at hotels between 2022 and 2023. Nonetheless, concerns about a recession and inflation partially stifled Canadian consumers' appetite for travel, lowering the full potential of revenue growth. In 2025, the threat of a potential trade war between Canada and the United States could have a negative impact on travel demand overall. Therefore, industry revenue is expected to grow at a CAGR of 15.1% over the past five years, totaling an estimated $33.4 billion in 2025, when revenue will rise an expected 3.5%. This significant growth rate reflects the industry's rebound from its historical low in 2020. In the same year, profit is also anticipated to account for 18.5% of revenue. Rising competition is one of the main challenges facing hotels and motels. Short-term rental platforms have become a disruptor to traditional hotel stays. Airbnb has become a popular destination for travelers in Canada looking for unique experiences. However, recent efforts by the Canadian government could lessen Airbnb's influence moving forward. Housing shortages are prompting officials in Montreal and Toronto, two major tourist destinations, to attempt to remove illegal Airbnb units or ban the rental site altogether. At the same time, Canada's foreign home ownership ban, extending until the end of 2024, prohibits non-residents from purchasing residential property for personal use or renting as a vacation home. Hotels and motels will contend with labour supply issues over the next five years as access to temporary low-wage foreign workers become limited and domestic workers demand higher compensation, putting hoteliers in a difficult situation. Therefore, trends accelerated by the pandemic, like hotels' digital transformation, will permanently alter and benefit the industry. Innovation will be critical for hotels to manage operational challenges, strengthen profit and address guests' evolving preferences. Hotels and motels' revenue is expected to expand at a CAGR of 1.6% to $36.2 billion over the five years to 2030.

Access South America Hotel Industry Overview which includes South America country analysis of (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America), market split by Type, Business Model, Room Capacity , Price Level, Booking Mode

Global Hotel Revenue Management Software market size 2025 was XX Million. Hotel Revenue Management Software Industry compound annual growth rate (CAGR) will be XX% from 2025 till 2033.

Europe hotel market size will be USD 175.69 Billion by 2023

IHIS: Percentage of Revenue: Heritage: Fixed Expenses data was reported at 6.200 % in 2017. This records an increase from the previous number of 2.700 % for 2016. IHIS: Percentage of Revenue: Heritage: Fixed Expenses data is updated yearly, averaging 3.650 % from Mar 2000 (Median) to 2017, with 18 observations. The data reached an all-time high of 6.200 % in 2017 and a record low of 2.100 % in 2009. IHIS: Percentage of Revenue: Heritage: Fixed Expenses data remains active status in CEIC and is reported by Federation of Hotel & Restaurant Associations of India. The data is categorized under India Premium Database’s Hotel Sector – Table IN.QHF002: Indian Hotel Industry Survey: Financial Performance: Revenue: by Hotel Ratings.

Asia Pacific's Mid range Hotel market is currently experiencing unparalleled growth, making it the fastest-growing segment in the global hospitality industry, capturing a significant 23% share of the market.

In 2024, Norway had the highest revenue recorded in the reported time, with 24.5 billion Norwegian kroner. This was a recuperation from the pandemic period, when the revenue decreased to less than 9.45 billion.

The size and share of this market is categorized based on Type (Dynamic Pricing Systems, Forecasting Solutions, Rate Management Systems, Distribution Management Systems) and Application (Rate Optimization, Inventory Control, Booking Management, Revenue Forecasting) and geographical regions (North America, Europe, Asia-Pacific, South America, Middle-East and Africa).

The revenue in the 'Hotels' segment of the travel & tourism market in Indonesia was forecast to continuously increase between 2024 and 2029 by in total 1.8 billion U.S. dollars (+38.88 percent). After the ninth consecutive increasing year, the revenue is estimated to reach 6.45 billion U.S. dollars and therefore a new peak in 2029. Find further information concerning the number of users in the travel & tourism market in China and the revenue in the travel & tourism market in Argentina. The Statista Market Insights cover a broad range of additional markets.

The size and share of this market is categorized based on Type of Deployment (On-Premise, Cloud-Based) and Application (Independent Hotels, Hotel Chains, Resorts, Motels, Boutique Hotels) and End User (Business Travelers, Leisure Travelers, Travel Agencies, Corporate Clients, Event Planners) and geographical regions (North America, Europe, Asia-Pacific, South America, Middle-East and Africa).