Hospitality can be defined somewhat broadly as an industry that focuses on providing consumers with a means to participate in leisure activities, be that staying in a hotel or dining in a restaurant. It encompasses many industries, the largest of which are accommodation and food and drink services. In 2023, the global hospitality market reached over *** trillion U.S. dollars and was forecast to grow to around *** trillion U.S. dollars in 2024.

The Report Covers US Hospitality Industry Trends, Overview and the Market is Segmented by Type (Chain Hotels and Independent Hotels) and Segment (Service Apartments, Budget and Economy Hotels, Mid and Upper Mid-Scale Hotels, and Luxury Hotels)

Global Hospitality market size is expected to reach $7239.02 billion by 2029 at 6.1%, segmented as by type, non-residential accommodation services, food and beverage services

This statistic shows the global hotel industry market size from 2014 to 2018. The retail value of the global hotel industry was 600.49 billion U.S. dollars in 2018.

Global hotel industry - additional information

The global hotel industry comes under the umbrella of the travel and tourism industry, an industry which contributed 8.81 trillion U.S. dollars to the global economy in 2018. Travelers who are on the road for more than a day need a place to sleep and rest - there are various types of lodging across the world to accommodate for this.

The global occupancy rate (the share of total rooms available which are occupied or rented at a given time) of hotels in most regions increased over the previous five years. Europe had the highest occupancy rate in 2018 at 72.4 percent, closely followed by the Asia Pacific region with 70.6 percent. In the same year, the Middle East and Africa were the most expensive region for hotels with an average daily rate of 140.97 U.S. dollars. The cheapest region for the last five years was Asia Pacific.

The India Hospitality Industry market report segments the industry into By Type (Chain Hotels, Independent Hotels), By Segment (Service Apartments, Budget and Economy Hotels, Mid and Upper Mid-Scale Hotels, Luxury Hotels). Includes historical insights and five-year forecasts.

United States Hospitality Industry Market size was valued at USD 15.31 Billion in 2024 and is projected to reach USD 23.68 Billion by 2031, growing at a CAGR of 5.6% from 2024 to 2031.United States Hospitality Market DriversThe market drivers for the United States Hospitality Market can be influenced by various factors. These may include:Economic conditions: The hotel industry is strongly impacted by the nation's overall economic health, which includes variables like GDP growth, employment rates, and consumer spending. People travel more and spend more on hotel services when the economy is doing well.Travel trends: The demand for hospitality services in particular locations may be influenced by shifting travel patterns, such as an increase in domestic or international travel, the rise of bleisure travel (combining business and leisure vacations), and the popularity of particular places.Technological developments: To improve customer experiences, increase operational efficiency, and customize services, the hotel sector is progressively implementing technology. Keyless entrance, personalized recommendations, and smartphone check-in are examples of trends that can affect customer preferences.Regulatory environment: The hospitality sector may be impacted by government laws and regulations, such as those pertaining to taxes, labor laws, and visa requirements. The competitiveness of the market and operating expenses might be impacted by regulatory changes.Consumer preferences: Shifts in the hospitality business can be driven by changes in consumer preferences, which can affect the kinds of services and amenities that are in demand. Examples of these shifts include a growing interest in wellness tourism, sustainable travel, or unique experiences.Rivalry: Pricing strategies and client loyalty may be impacted by the degree of rivalry in the hospitality industry, which includes the existence of well-known brands, fresh competitors, and alternative accommodation options like Airbnb.Global crises and events: The hospitality industry may be significantly impacted by events like health pandemics, natural disasters, geopolitical unrest, or economic downturns, which can alter demand and travel patterns.

The Report Covers Hotel Industry in China and is Segmented by Type (Chain Hotels and Independent Hotels) and Segments (Service Apartments, Budget and Economy Hotels, Mid and Upper Mid-Scale Hotels, and Luxury Hotels). The Market Size and Forecasts for the Hospitality Industry in China are Provided in Terms of Value (USD Billion) for all the Above Segments.

The United Kingdom’s hotel market ranges from renowned 5-star and luxury hotels to major national budget brands. In 2024, the market size of the hotel industry in the UK was valued at approximately **** billion British pounds, down from the previous year's total of **** billion British pounds. In 2025, the market size of this industry was forecast to increase by around *** million British pounds. How high is the UK’s hotel occupancy rate? The monthly hotel occupancy rate in the UK reached ** percent in March 2025. While this figure was a slight decrease from the same month in the previous year, it was significantly higher than in the years 2020, 2021, and 2022. In March 2020 and 2021, the country's hotel occupancy rate had fallen to ** percent and ** percent, respectively. The low occupancy rate during 2020 and 2021 was due to the impact of the coronavirus (COVID-19) pandemic which greatly limited travel and tourism across the globe. Who are the key players in the UK hotel industry? During the 2023/24 financial year, Whitbread’s annual revenue amounted to **** billion British pounds. Whitbread is a UK multinational leisure and hospitality company, best known as the owner of the Premier Inn hotel brand which can be found across the country. Meanwhile, the gross revenue of Holiday Inn hotels worldwide totaled *** billion U.S. dollars in 2024. Holiday Inn is a brand of hotels owned by the British company InterContinental Hotels Group.

[226+ Pages Report] The global Hospitality market size is expected to grow from USD 3953 billion in 2021 to USD 6716.3 billion by 2028, at a CAGR of 10.24% from 2022-2028

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 will be 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/ ...

The market size of the hotel and resort sector worldwide peaked at 1.5 trillion U.S. dollars in 2023. This showed five percent growth over the previous year's figure of 1.43 trillion U.S. dollars. What are the leading hotel brands globally? In 2023, among hotel brands with the highest brand values globally were industry giants like Hilton, Hyatt, and Hampton Inn. Hilton was reported to have a brand value exceeding 11 billion U.S. dollars. However, while Hilton led brand value, Wyndham hotels and resorts claimed the top spot for the hotel company with the largest number of properties worldwide, boasting over nine thousand hotels globally, while Hilton ranked fourth. Hotel booking behavior of global travelers In 2023, hotel booking growth worldwide peaked in January and February, surpassing 130 percent - there was also a notable increase in hotel booking growth during the summer months of June and August. As of 2024, Vietnam and China stood out as the countries with the highest share of consumers booking hotels or private accommodation. Meanwhile, countries with the lowest share of hotel and private accommodation bookings were Hungary and Pakistan.

Over the past five years, the Global Hotels and Resorts industry has expanded. The current period started with a pandemic-low revenue level. As business and travel activities gradually resumed, industry revenue surpassed the pre-pandemic level in 2023. However, rising inflation following the pandemic and geopolitical tensions depressed the potential revenue growth. Further, stringent fatal aviation accidents and potential tariff war further deteriorate consumer confidence, inducing them to put off travel plans. Overall, industry revenue is expected to grow at an annualized rate of 14.2% to $1.8 trillion over the five years to 2025, including a 2.4% growth in 2025. In the same year, profit is also expected to reach 18.5%. While the prominence of well-known hotel chains looms over the industry, it still experiences low concentration since it has numerous small independent hotels. Due to low concentration, the industry remains highly competitive, and the steady increase in the supply of new hotel rooms has limited the hotels' ability to raise room prices. However, the industry is changing and continues to become more consolidated. This gives larger chains control over industry parts through loyalty programs and discounted pricing structures. Over the next five years, the largest growth will likely be in Asia and the Pacific, which will help emerging economies surpass several developed economies as favored destinations for tourists. However, uncertainty in some markets, specifically those with political and health risks, will hamper consumer sentiment early during the outlook period, placing pressure on hotels. Further, the potential tariff war between the US and other powerhouses such as China and the EU will likely affect travel rates as these countries strengthen their border control. Even so, more hotels and resorts will be built due to travel rates expected to rise overall, which should drive industry revenue growth. Overall, industry revenue is projected to increase at an annualized rate of 2.2% to $2.0 trillion over the five years to 2030.

Swedish Hospitality Market is Segmented by Type (Chain Hotels and Independent Hotels), and by Segment (Service Apartments, Budget and Economy Hotels, Mid and Upper Mid-Scale Hotels, and Luxury Hotels). The Report Offers Market Size and Forecasts for the Hospitality Industry in Sweden in Value (USD) for all the Above Segments.

In 2021, the smart hospitality market reached approximately 19 billion U.S. dollars worldwide. This was forecast to grow to 133.7 billion U.S. dollars by 2031 at a compound annual growth rate (CAGR) of 22 percent.

Switzerland Hospitality Industry Report is Segmented by Type (Service Apartments, Chain Hotels, and Independent Hotels) and Segment (Budget and Economy, Mid and Upper Mid-Scale, and Luxury). The Report Offers Market Sizes and Forecasts in Terms of Value (USD) for all the Above Segments.

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Morocco Hospitality Market Size 2025-2029

The hospitality market in Morocco size is forecast to increase by USD 1.85 billion at a CAGR of 6% between 2024 and 2029.

The hospitality market is experiencing significant shifts driven by evolving consumer preferences and technological advancements. One key trend is the growing demand for local and authentic experiences, as travelers seek to connect with the cultures and communities they visit (Shifting preference for local and authentic experiences). Catering services and conference management cater to corporate travelers, with digital transformation streamlining operations.


However, implementing effective tourism policies remains a challenge for industry players, as they navigate complex regulatory environments and strive to balance economic development with environmental sustainability and social responsibility. These trends and challenges are shaping the future of the hospitality industry, offering both opportunities and challenges for businesses that are able to adapt and innovate. In the dynamic hospitality market, solo travelers and event planners seek personalized experiences, driving the demand for advanced technology integrations such as voice assistants and mobile payments.

What will be the Size of the market During the Forecast Period?

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Supply chain management and quality management are crucial for ensuring food safety and energy efficiency, while net promoter scores and guest reviews shape brand reputation. Service recovery strategies are essential for addressing any issues promptly, boosting customer lifetime value. Another factor fueling market growth is the increasing use of the internet for researching and booking accommodations, as well as the influence of online testimonials and reviews (Increase in Internet access and online testimonials).

Family travel and wellness travel segments prioritize employee engagement and waste reduction. Destination management and smart home integration offer unique experiences, enhancing the overall guest experience. Biometric authentication and average daily rates are key performance indicators for occupancy rate optimization. Adventure travel and group travel segments continue to grow, requiring robust employee empowerment and continuous improvement in service offerings.

How is this market segmented and which is the largest segment?

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.

Type

  International
  Domestic


Service

  Food service
  Accommodation


Business Segment

  Chain hotels
  Independent hotels
  Franchise models
  Management contracts


Price Range

  Budget
  Mid-range
  Upscale
  Luxury 


Geography

By Type Insights

The international segment is estimated to witness significant growth during the forecast period. The global hospitality market is experiencing significant evolution, with various entities shaping its dynamics. Loyalty programs are becoming increasingly important for retaining customers, offering personalized rewards and experiences. Eco-friendly practices are gaining prominence, as sustainability initiatives align with travelers' values and regulatory requirements. Tourism technology, including channel management systems and digital marketing, streamlines operations and enhances customer experiences. Meeting rooms equipped with advanced technology cater to business travelers, while revenue management systems optimize pricing strategies. Cloud computing and mobile services, such as mobile check-in and mobile ordering, offer convenience and flexibility. Fitness centers, guest engagement, and automated services cater to diverse consumer preferences.
Sustainable initiatives, like green initiatives and energy efficiency, are a priority for hotels. Luxury and boutique hotels invest in hospitality design and concierge services to provide unique experiences. Event spaces and business intelligence tools cater to corporate clients. Cost optimization, through revenue optimization and operational efficiency, is crucial for budget hotels. Property management systems and staff training ensure high-quality customer service. Online booking engines and social media marketing expand reach and accessibility. In the realm of hospitality technology, artificial intelligence and guest relationship management systems improve operational efficiency and personalize services.

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Market Dynamics

Our Morocco Hospitality Market researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies t

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 Hospitality Industry in Mexico Report is Segmented by Type (Chain Hotels and Independent Hotels) and Segment (Service Apartments, Budget and Economy Hotels, Mid- and Upper-Mid-Scale Hotels, and Luxury Hotels). The Report Offers Market Size and Forecasts for the Hospitality Industry in Mexico in Value (USD) for all the Above Segments.

Discover India’s hospitality industry insights, market size, top players, future outlook, and trends shaping the market in 2028. Explore key growth drivers and opportunities.

The hospitality industry in the Netherlands is projected to grow at a CAGR of 8.25% during the forecast period of 2019-2033. The market size is expected to reach XX million USD by 2033, driven by factors such as increasing tourism and business travel, rising disposable income, and favorable government policies. The industry is characterized by a competitive landscape with a mix of local and international players. Major hotel brands in the country include Bastion Hotel Group, Louvre Hotels Group, Hilton Hotels & Resorts, InterContinental Hotel Group, and Radisson Hotel Group. The hospitality industry in the Netherlands is segmented into various categories based on type and service offerings. Chain hotels hold a significant share of the market, followed by independent hotels. Budget and economy hotels have witnessed significant growth in recent years, catering to the needs of budget-conscious travelers. Mid and upper-mid-scale hotels offer a comfortable and convenient experience for business travelers and tourists alike. Luxury hotels account for a smaller share of the market but offer exclusive amenities and services to high-end travelers. Recent developments include: January 2023: InterContinental Hotel Group, Netherlands, took the initiative on an Augmented Reality (AR) hotel art tour where visitors can interact virtually with 10 artworks in the hotel's collection, supplemented by computer-generated graphics and sound as well as written or audio narratives about the piece and artist., May 2022: Fletcher Hotel, Netherlands, took the initiative on an immersive virtual experience where guests take part in an interactive treasure hunt that combines virtual and physical gameplay during their stay.. Key drivers for this market are: 4., Contribution to the Economy to Generate Income for the Nation. Potential restraints include: 4., Long Hours of Working Pattern. Notable trends are: Tier-II Cities Are Going to Attract More Investors Thus Driving The Industry.