Travel Accommodation Market

Travel Accommodation Market Size and Share:

The global travel accommodation market size was valued at USD 873.7 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 2,071.2 Billion by 2033, exhibiting a CAGR of 10.07% from 2025-2033. Europe currently dominates the market. The dominance of the European region is driven by its rich cultural heritage, diverse destinations, well-developed infrastructure, and strong inbound tourism demand.

The rise of online travel agencies (OTAs) and mobile applications is making travel planning and booking more accessible. Travelers benefit from streamlined booking experiences, price comparisons, and last-minute deals, making accommodations more attractive and convenient. Furthermore, the use of smart technologies like artificial intelligence (AI)-driven pricing tools, digital concierge services, and contactless check-ins enhances guest experiences. This integration helps providers optimize operations and cater to tech-savvy travelers. Apart from this, the growing awareness about environmental conservation is leading to the adoption of eco-friendly accommodations, such as green-certified hotels and sustainable resorts. Travelers prioritize establishments that reduce carbon footprints, use renewable energy, and support local communities. Additionally, improvements in transportation infrastructure, including new airports and better road networks, is making previously inaccessible destinations reachable. This development is driving the demand for accommodations in remote and offbeat locations.

The United States plays a crucial role in the market, driven by the increasing popularity of corporate travel, including conferences and events. Many establishments now provide tailored amenities such as high-speed internet, workspaces, and conference facilities. Besides this, the emergence of innovative tools and platforms is providing travelers with affordable booking choices while allowing hotels to improve their direct booking percentages. These platforms target tech-minded users, providing smooth compatibility with well-known browsers and applications, thereby enhancing their usage. In 2024, Directo made its official entry into the US market, providing a Chrome extension that assists travelers in locating accommodation deals without commissions while enabling hotels to increase direct bookings. Boasting more than 100,000 users and $1 million in pre-seed funding, the platform intends to transform the travel booking experience. Travelers can obtain the extension at no cost from the Chrome Store.

Travel Accommodation Market Trends:

Increasing Trend of International Tourism and Travel

The global travel accommodation market is driven by the growing popularity of international tourism and travel. This phenomenon is primarily because of the expanding middle-class population across the globe, coupled with the improvement of transportation networks that have made cross-border travel more accessible and convenient. As disposable incomes rise, more individuals are seeking diverse experiences and exploring new destinations. This driver creates a surge in demand for various types of accommodations, from budget lodgings to luxury resorts. The influx of tourists also prompts the development of new accommodation establishments, thereby stimulating the market's growth. An industrial survey report indicated that in the United States, 74% of travelers chose to arrange their trips online in 2023, emphasizing a transition towards digital platforms for travel arrangements and reservations. Consequently, the hospitality sector is positioned at the vanguard of addressing the varied preferences and requirements of these worldwide tourists.

Rising Reliance on Online Booking Platforms & Mobile Applications

The travel accommodation landscape has undergone a significant transformation with the advent of online booking platforms and mobile applications. According to a news article, in 2023, approximately 69% of travel bookings in the United States were made online, a figure projected to rise to 74% by 2027. These technological advancements have revolutionized the way travelers search for, compare, and book accommodations. With a vast array of options at their fingertips, travelers can effortlessly browse through various accommodations, ranging from hotels to vacation rentals. The convenience and transparency offered by these platforms empower individuals to make informed decisions, driving healthy competition among accommodation providers and revolutionizing the travel accommodation market outlook. Moreover, the integration of user reviews and ratings provides potential guests with insights into the quality and experiences of different accommodations. This driver not only simplifies the booking process but also amplifies the visibility of various accommodation establishments, thus propelling the market's growth in a tech-savvy era.

Evolving Preferences for Unique and Personalized Experiences

Changing people preferences are leading to a significant shift in the travel accommodation market towards unique and personalized experiences. Modern travelers are increasingly seeking accommodations that align with their individual interests and preferences. This driver has given rise to the popularity of boutique hotels, homestays, and vacation rentals, which offer distinctive atmospheres and local flavors. These alternatives to traditional hotels cater to travelers who yearn for authentic and immersive experiences. A recent study shows that 72% of travelers favor distinctive, personalized experiences when choosing a place to stay. This has resulted in a 30% rise in the popularity of boutique hotels, homestays, and vacation rentals. Additionally, 55% of travelers are eager to experience local food and culturally immersive stays; this prompts accommodation providers to broaden their services and adapt to evolving preferences. The need for tailored amenities, regional dishes, and culturally immersive experiences has prompted lodging providers to expand their services. Consequently, the travel accommodation sector has experienced the rise of imaginative and original lodging ideas that not only address diverse preferences but also aid in the overall development and transformation of the industry.

Travel Accommodation Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global travel accommodation market, along with forecast at the global, regional, and country levels from 2025-2033. The market has been categorized based on type, price point, mode of booking, and application.

Analysis by Type:

• Hotels
• Hostels
• Resorts
• Vacation Rentals
• Others
   

Hotels dominate the market with a 53.6% share in 2024. Hotels lead the market by providing a variety of choices that meet different client preferences, ranging from affordable lodging to opulent experiences, enabling them to attract a wide array of travelers. Additionally, hotels typically provide a range of amenities including dining options, gyms, and meeting spaces, making them appealing for both recreational and corporate guests. Their well-developed infrastructure and service benchmarks foster a feeling of dependability and uniformity, an essential element for travelers in search of a stress-free experience. Besides this, the brand awareness and loyalty initiatives provided by leading hotel chains cultivate a feeling of reliability and familiarity among travelers, promoting repeat patronage. Furthermore, hotels gain advantages from their prime locations in important tourist spots and commercial centers, improving accessibility and ease for visitors. The broad marketing and distribution systems of hotel chains enhance their presence and accessibility in the marketplace.

Analysis by Price Point:

• Economy
• Mid-Range
• Luxury
   

The mid-range segment dominates the market by successfully balancing cost and quality, thus appealing to a diverse array of travelers such as families, business people, and solo explorers. This segment benefits from technological advancements such as online booking platforms and mobile apps, which enhance accessibility and boost its popularity. Evolving user preferences for personalized experiences also play a significant role as the mid-range accommodations can offer an array of amenities like well-appointed rooms, on-site dining, and recreational facilities to meet these demands. The segment's flexibility in responding to market trends and its ability to serve both leisure and business travelers reinforces its leading position. Overall, by focusing on reliable comfort and quality, mid-range accommodations are successfully capturing a significant market share by addressing the diverse needs of a discerning clientele.

Analysis by Mode Of Booking:

• Direct Booking
• Online Travel Agency
• Others
   

Direct booking leads the market with 46.5% of market share in 2024. The direct booking segment holds a dominant position in the market, offering travelers greater control and customization over their reservations. By engaging directly with accommodation providers, guests can personalize their stay, negotiate terms, and avail themselves of specific amenities, leading to a tailored experience. Furthermore, direct bookings frequently present financial benefits like exclusive offers and discounts, avoiding third-party fees and attracting cost-conscious travelers. The trust element is also crucial; direct bookings facilitate open and dependable communication among guests and providers, nurturing trust and improving the overall experience. Loyalty programs that provide room enhancements, exclusive offers, and point collection additionally encourage this booking approach. The rise of intuitive websites and mobile apps has also played a significant role in the popularity of direct bookings by offering a simple and convenient platform for travelers to research, compare, and secure their lodging.

Analysis by Application:

• Leisure
• Professional
• Others
   

Leisure currently leads the overall industry with 62.6% of market share in 2024. Leisure holds the biggest market share on account of the increasing disposable incomes and expanding middle-class population across various regions, which, in turn, are resulting in a rise in leisure travel. Additionally, evolving user preferences for personalized and memorable experiences are shifting the focus towards the leisure segment. Accommodations that offer distinct atmospheres, local culture, and recreational facilities align with the desires of leisure travelers, driving their preference for such options over traditional lodging. Furthermore, the rise of online booking platforms and digital marketing is making it easier for leisure travelers to discover and access a wide range of accommodations, thereby increasing the visibility and accessibility of leisure-oriented properties. This ease of booking aligns with the spontaneous nature of leisure travel, contributing to the segment's dominance.

Regional Analysis:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Europe holds the largest market share, driven by a combination of elements such as its abundant cultural heritage, varied landscapes, and historic sites, which draw a continuous influx of both international and local visitors. The region's strong transportation network, highlighted by effective rail systems and widespread flight links, improves its accessibility, thereby increasing its attractiveness. Options for accommodation in Europe are varied, encompassing everything from upscale hotels to quaint bed and breakfasts, satisfying different budgets and preferences. This extensive selection of options guarantees that Europe caters to a diverse range of travelers. Furthermore, Europe's emphasis on sustainability and environmentally conscious lodgings corresponds effectively with the rising interest in responsible travel. The area enjoys a consistent, year-round flow of visitors drawn to its historic and renowned attractions, minimizing fluctuations in demand. Joint marketing initiatives by governments and tourism agencies enhance Europe's competitive edge, reinforcing its leading status in the market. In 2024, a&o Hostels planned to invest Euro 500 Million (USD 526.63 Million) in expansion by transforming office and retail spaces into hostel accommodations across Europe. One of them is the a&o Florence, set to open in summer 2024, aiming to become Europe’s first net-zero hostel chain by 2025.

Key Regional Takeaways:

United States Travel Accommodation Market Analysis

In North America, the United States accounted for 87.50% of the total market share. The US travel accommodation market is driven by a healthy tourist industry, which has continued to benefit from growing household incomes and high domestic as well as international travel. As indicated by the U.S. Travel Association, the US travel and tourism industry in 2023 accounted for some USD 2.36 Trillion, with much going towards accommodation services. Still, hotel room demand keeps coming, and occupancy remains at or more than 65% all year through. Major hotel chains such as Marriott International and Hilton Worldwide also take the largest share due to both leisure and business travels. The growth in demand for luxury and boutique hotels is also influencing market growth, with more people now seeking different and highly individualized experiences. The US accommodation market is expected to keep growing further, following increasing international tourist arrivals, which will help the accommodation sector remain on top around the world.

Europe Travel Accommodation Market Analysis

The travel accommodation market in Europe is growing steadily, primarily driven by tourism demand and the changing patterns of travels. European Travel Commission, for instance, reported over 700 million international tourists visiting Europe in 2023 with an increase in demand for accommodations in most destinations. Destinations like France, Italy, and Spain had more than a 5% increase in bookings compared to the previous year. Rising with the sharing economy through platforms such as Airbnb is disrupting traditional hotel models as it appeals to travellers for more affordable or unique accommodation. The luxury segment is also being driven by higher numbers of high-net-worth individuals visiting Europe. Sustainable tourism initiatives by governments help in the development of sustainable accommodation options, which add to the region's increasing share of the global travel accommodation market.

Asia Pacific Travel Accommodation Market Analysis

Rapidly growing Asia Pacific travel accommodation market is due to an increase in incomes, an increase in tourism, and growing middle-class populations. Hotel industry revenue in the Asia Pacific region reached USD 150 Billion by the year 2023, with countries like China, Japan, and India leading this growth, an industrial report stated. China alone comprised a figure of over USD 68.1 billion of hotel market in 2023, which was led both by domestic tourism and an increase in international arrivals. India's hotel industry will expand by 12 percent per annum, supported by the growth of air traffic and the development of a large number of hotel chains. Countries like Japan and South Korea are witnessing growth in demand for boutique and capsule hotels as young people are seeking experiences. The region is promising further growth due to huge investment in tourism infrastructure and growing regional tourism.

Latin America Travel Accommodation Market Analysis

Latin America travel accommodations have been witnessing huge growth as a result of the increased international tourism as well as regional tourism. As Mexico News Daily reported in 2023, its tourism industry reached an all-time revenue of around USD 30.8 Billion with a growth rate of 10% above that of the previous year. This increase in tourist visits has boosted hotel demand in these countries. Brazil's tourist industry is also on an upsurge, since the number of international visits that yielded USD 6.9 Billion to Brazil in 2023 (the source was Brazilian Government) indicates growth in the country's attractiveness as a vacation hub. It also reflects increased capital inputs into accommodation, at the levels of luxury resorts and modest budget hotels. Other opportunities also include a move toward more sustainable tourism and an emphasis on eco-friendly lodging options. With continued infrastructure investments and growing international arrivals, Latin America's accommodation market continues to grow.

Middle East and Africa Travel Accommodation Market Analysis

The Middle East and Africa region's travel accommodation market are experiencing growth due to increasing tourism, improved infrastructure, and the growing demand for luxury accommodations. According to the World Tourism Organization, in 2023, more than 65 million international tourists visited the region, hence boosting the revenues of hotels, especially those high-demand destinations like Dubai, Abu Dhabi, and Cape Town. In the Middle East, there are strong demanding luxury resorts and high-end hotels due to rich tourists going from Europe and Asia, while in Africa, its countries, especially South Africa and Kenya, are placing their efforts into sustainable accommodative units with the aim to boost eco-tourism and attract the international flow. Government initiatives to boost tourism in countries like Saudi Arabia, aiming to diversify its economy, are further contributing to the market's growth, making the region a significant player in global travel accommodation.

Competitive Landscape:

Top companies in the sector are intentionally enhancing their offerings to meet evolving user demands. They are utilizing advanced technologies such as AI, IoT, and mobile integrations to deliver customized experiences and improve operational efficiency. Sustainable investments, including eco-friendly approaches and green certifications, are becoming increasingly significant to meet the demands of environmentally conscious travelers. Improving partnerships with online travel agencies, metasearch tools, and loyalty programs is aiding in client retention and acquisition. Furthermore, companies are expanding their services by diversifying lodging options to cater to luxury, budget, and alternative accommodation demands. They are adopting aggressive expansion strategies of major hospitality brands into untapped regions. By entering new markets, companies are addressing the rising demand for diverse and high-quality accommodations. In 2024, Hilton revealed intentions to grow its global presence by entering five new markets: Bermuda, Paraguay, Nepal, Laos, and Timor-Leste. The growth features inaugural openings for acclaimed brands such as Hilton Garden Inn, DoubleTree, and Tapestry Collection in these areas.

The report provides a comprehensive analysis of the competitive landscape in the travel accommodation market with detailed profiles of all major companies, including:

• A&O Hotels and Hostels GmbH
• Accor S.A.
• Airbnb Inc.
• Hilton Worldwide Inc.
• Hyatt Hotels Corporation
• Marriott International Inc.
• OYO Rooms
• Radisson Hotel Group
• Red Lion Hotels Corporation (Sonesta International Hotels Corporation)
• Wyndham Destinations
   

Latest News and Developments:

• December 2024: According to Marriott International, Luxury Group is expanding its luxury high-end hospitality offerings with new destination openings, safari camps and transformative travel experiences, adding new brand extensions, tented camps, remote lodges, and bespoke experiences among others. Over 260 premium properties are in its worldwide development plan, with approximately 30 anticipated to open in 2025.
• November 2024: Hyatt Hotels Corporation reports that it is expanding its luxury and lifestyle offerings by launching over 20 hotels in the United States, Canada, Mexico, Latin America, and the Caribbean by 2025. This will enhance Hyatt's presence in new regional markets and increase its attractiveness to upscale travelers.
• November 2024: Accor S.A. revealed that it will be speeding up the group's expansion in Asia with 27 hotel agreements and 8,117 keys so far this year. The expansion includes twelve brands across eight countries, from India to South Korea and Japan.

Travel Accommodation Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the travel accommodation market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global travel accommodation market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the travel accommodation industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.