Hotel & Resort Market

Hotel & Resort Market Outlook (2024 to 2034)

According to a new industry report released by Fact.MR, turnover of the global hotel & resort market is analyzed at US$ 1,779.01 billion in 2024 and is projected to rise at a remarkable CAGR of 20.3% to touch a value of US$ 11,255.79 billion by the end of 2034.

In several countries, hotels and resorts are benefitting from government initiatives and policies that encourage domestic and international travel through infrastructure development, simplified visa procedures, and tourism-friendly legislation. Trends toward remote work are driving up the popularity of “bleisure” travel, which is driving up demand for accommodations that offer both leisure amenities and suitable work environments.

Key players in the hotel & resort market are strategically expanding their footprint by building partnerships and collaborations to reach new markets. For example, in August 2024, Generator and Freehand Hotels collaborated strategically with Thailand-based Dusit Hotels and Resorts to help both businesses enter new foreign markets.

In the hospitality sector, robotics is playing a crucial role. Service robots, including robot greeters, housekeeping robots, and kitchen robots are becoming more prevalent in hotels and resorts. Robots are reducing operating costs and improving the speed and smoothness of services.

Key Market Growth Drivers

• The need for hotels and resorts is increasing at a noticeable growth rate due to rising international tourism. Travel is increasing globally due to the high availability of reasonably priced travel options because of tough competition.
• Business travel is becoming more essential as globalization continues to rise. The demand for business-oriented hotels with conference spaces, fast internet, and close access to business centers is gaining traction.
• A key hotel & resort market trend is a rising number of tourists looking for individualized and distinctive experiences, such as adventure sports and cultural immersion. Hotels and resorts are focusing on providing personalized stays and exclusive services to meet this trend.
• Digital transformation is streamlining reservations, thereby enhancing customer experience and driving the hotel & resort market growth. This is through smartphone apps, online booking systems, and smart hotel technologies.
• Wellness resorts and spas are becoming increasingly popular due to the rise in the demand for health and wellness. Travelers interested in well-being seek hotels that offer fully catered treatments, yoga retreats, fitness centers, and others is increasing. These are especially gaining attention from individuals with hectic lives.
• Customers are placing high importance on vacation options characterized by eco-friendly attributes, due to this, hotels and resorts that are using sustainability measures, such as waste management solutions, renewable energy, and green certifications grabbing attention from travelers.

Report Attribute	Detail
Hotel & Resort Market Size (2024E)	US$ 1,779.01 Billion
Forecasted Market Value (2034F)	US$ 11,255.79 Billion
Global Market Growth Rate (2024 to 2034)	20.3% CAGR
North America Market Value (2024E)	US$ 527.44 Billion
East Asia Market Growth Rate (2024 to 2034)	22.8% CAGR
Medium-End Hotel Accommodations Segment Value (2034F)	US$ 5,362.95 Billion
Domestic - Leisure & Others Segment Value (2034F)	US$ 7,730.61 Billion
Key Companies Profiled	Marriott International; Hilton Worldwide Holdings; Hyatt Hotels Corporation; InterContinental Hotels Group (IHG); AccorHotels; Wyndham Hotels & Resorts; Four Seasons Hotels and Resorts; Radisson Hotel Group; Shangri-La Group; Mandarin Oriental Hotel Group; Mövenpick Hotels & Resorts

Which Trends are Positively Influencing the Market Expansion?

“Digital Booking Platforms Contributing to Increasing Profitability of Businesses”

The hotel & resorts market size is expanding at an excellent growth rate and digital transformation is playing a critical role in it. Digital transformation is leading to increased efficiency in business operationalization and customer engagement.

Due to online booking platforms, such as Expedia, Booking.com, Agoda, and others have made it easy and convenient for travelers to compare prices, read reviews, and book accommodations from anywhere across the world. These websites are considerably enhancing the process of booking accommodation. This ease is further enhanced by mobile apps that allow bookings on the move, customized promotions, and good communication between guests and hotel personnel.

Several players are integrating smart technologies to increase guest experience and create a synergy between automation and personalization in operations. These include keyless room entry, voice-controlled devices, and in-room IoT systems that allow guests to control lighting, temperature, and entertainment comfortably.

What is Limiting the Profitability of Hotels & Resorts?

“Intense Competition Between International and Domestic Players Limiting Growth Opportunities”

Fierce competition in hotel and resort businesses is negatively affecting the market expansion. International as well as domestic market players are focusing on maintaining a market position. Further, alternative accommodation platforms, such as Airbnb, Vrbo, Wimdu, and others are limiting the profitability of hotels and resorts that follow traditional models.

These sites are posing challenges by providing equally affordable, unique places to live as well as staying at competitive prices. These are attracting travelers who seek a more personal experience or budget-friendly options, creating an obstacle for ordinary hotels and resorts that need opportunities to modernize their offerings to stay on top of such competition.

Country-wise Insights

Throughout the projection period, North America is projected to lead with a sizable portion of the hotel & resort market share. Key factors behind the market expansion in the region are strong demand for luxury and business travel, as opined in the hotel & resort industry outlook. In addition, the high adoption and utilization of technology in guest services, wellness tourism, and an emphasis on immersive stays are further contributing to market growth.

What Makes the United States a Profitable Market for Hotels and Resorts?

“Rising Trend of Bleisure Travel Driving Market Expansion in Country”

Attribute	United States
Market Value (2024E)	US$ 473.6 Billion
Growth Rate (2024 to 2034)	21.6% CAGR
Projected Value (2034F)	US$ 3,339.67 Billion

In the United States, business travelers are increasingly extending their vacations for leisure activities, a trend known as "bleisure" travel. Flexible work arrangements, such as remote or hybrid work, allow employees to balance their holidays with their professional obligations.

This trend is raising the demand for hotels and resorts that offer leisure services, including spas, gyms, recreational activities, and others in addition to business-friendly features, such as meeting spaces and high-speed internet. Due to this ongoing trend, the market in the United States is continuously moving in an upward direction.

Why are Hotel & Resort Businesses Expanding in South Korea?

“Natural Hot Springs and Traditional Therapies Grabbing Tourist Attention”

Attribute	South Korea
Market Value (2024E)	US$ 86.33 Billion
Growth Rate (2024 to 2034)	23.3% CAGR
Projected Value (2034F)	US$ 700.62 Billion

The growing popularity of wellness travel in South Korea is significantly affecting the development of luxury resorts with specialized services, as mentioned in the hotel & resort industry analysis. The country is gaining popularity among tourists who are interested in wellness because of its natural hot springs, traditional Korean treatments, and emphasis on holistic well-being.

To keep up with this trend, hotels and resorts are incorporating elements, such as mindfulness courses, eco-friendly retreats, and Korean spa treatments (jjimjilbang). The fast-paced lifestyle of metropolitan individuals is driving up the need for both physical and mental renewal, which is driving up the attraction of luxury hotels and resorts in South Korea.

Category-wise Insights

Based on product and service, the high-end hotel accommodations segment is projected to increase at 20.5% CAGR over the next ten years due to customers increasingly prioritizing unique and lavish experiences over standard housing because of the expanding trend of experiential travel.

Why is Preference for Medium-end Hotel Accommodations High?

“Attracting Budget-Conscious Travelers with Comfortable Accommodations”

Attribute	Medium-End Hotel Accommodations
Segment Value (2024E)	US$ 707.83 Billion
Growth Rate (2024 to 2034)	22.4% CAGR
Projected Value (2034F)	US$ 5,362.95 Billion

As per Fact.MR published hotel & resort industry analysis, the medium-end hotel accommodations segment holds a significant market share because they are considered the perfect balance between price and quality. Travelers who have low budgets and want better quality are finding medium-end hotel accommodations an ideal choice. Families, business travelers, and tourists who value affordability are its prominent customers. An essential amenity typically found in medium-end hotels includes free Wi-Fi, dining services, and strategic location, which attracts both domestic and international guests.

Why Domestic - Leisure & Others Segment Hold a Significant Market Share?

“Growing Domestic Travel Rate in Several Countries Due to Improving Transport Infrastructure”

Attribute	Domestic - Leisure & Others
Segment Value (2024E)	US$ 1,065.33 Billion
Growth Rate (2024 to 2034)	21.9% CAGR
Projected Value (2034F)	US$ 7,730.61 Billion

The domestic- leisure and others segment accounts for sizable revenue share due to increasing domestic travel in several countries at a quick pace. This is driven by the factors, such as price, accessibility, familiarity, and others. The market is benefiting from the rising number of locals looking for weekend trips, family vacations, or quick getaways.

As mentioned in the hotel & resort industry outlook, the segment growth is further supported by the improving transport infrastructure of several countries and growing interest in regional travel. In addition, importantly, domestic leisure travel turns into a dependable substitute during periods of economic uncertainty or restrictions on international travel, guaranteeing steady demand for hotels and resorts.

Competitive Landscape

To attract a larger client base, prominent hotels and resorts are broadening their offerings to include wellness initiatives, adventure sports, and cultural encounters. Several businesses are incorporating the latest technology to improve operational efficiency and visitor experience.

These advances, which range from mobile apps for smooth check-ins to AI-powered booking systems and dynamic pricing models are driving up productivity and client happiness, which in turn raises profitability.

• In November 2024, Hilton announced the launch of the premium brand in China with the signing of the first LXR Hotels & Resorts property there. The LXR project is set to open in 2027 in the center of Xi'an, a historic and cultural city, in partnership with Zhong Ding Guo Sheng. With this brand launch, Hilton reaches a major milestone in growing its portfolio of upscale hotels in China.
• In November 2024, the Movenpick Hotel Winter Park Baku introduced Azerbaijan to the brand's distinctive style and culinary offerings. The first Movenpick hotel in Azerbaijan and the South Caucasus region, the Movenpick Hotel Winter Park Baku, has opened. Movenpick is a name that is linked with Swiss hospitality and culinary quality.

Fact.MR provides detailed information about the price points of prominent players offering services in hotels & resorts positioned across the world, sales growth, production capacity, and speculative technological expansion, in this new market report.

Segmentation of Hotel & Resort Market Research

• By Product & Service :

  • Medium-End Hotel Accommodations
  • High-End Hotel Accommodations
  • Low-End Hotel Accommodations
  • Resort Accommodations

• By Major Market :

  • Domestic - Leisure & Others
  • Domestic - Businesses
  • International - Leisure & Others
  • International - Businesses

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa