PORTLAND, OR—Global tourism is estimated to reach $893 billion by 2026, according to a report by Allied Market Research on the travel accommodation industry.
A rise in global tourism, developments in corporate travel industry, and surge in the inclination among consumers to shift from product to experience drive the growth of the global travel accommodation market. On the other hand, the increase in incidence of forgery and fluctuating fortunes for destinations restrain the growth to some extent. However, innovation through artificial intelligence and eco-friendly accommodations for solo travelers are expected to create lucrative opportunities in the near future.
The Hotel Segment to Lead the Trail by 2026
Based on type, the hotel segment contributed to around three-fifths of the global tourist accommodation market revenue in 2018 and is expected to retain its dominance during 2019–2026. The fact that hotels provide short-term paid accommodation, meals and other facilities according to the exact needs of travelers and tourists has propelled the growth of the segment. The vacation rental segment, on the other hand, is projected to grow at the fastest CAGR of 6.7% throughout the estimated period. Increase in the drift toward renting large homes enables a lower cost of accommodation, which is appealing to budget travelers. Also, booming tourism business in emerging markets has fueled the growth.
The Leisure Segment Held the Largest Share in 2018
Based on application, the leisure segment garnered the largest share in 2018, holding nearly two-thirds of the global tourist accommodation market. This is attributed to the increase in the number of travelers who travel for the purpose of relaxation, leisure, entertainment, recreation, religious reasons, and visiting relatives and friends. The same segment would also showcase the fastest CAGR of 5% until 2026.
Europe, Followed by North America, to Rule the Roost in Terms of Revenue
Based on geography, Europe, followed by North America, accounted for nearly two-fifths of the global tourist accommodation market share in 2018 and is expected to dominate during the study period. In terms of both inbound and outbound tourism, Europe has now topped the list among all of the other continents. For this reason, there is a growing number of new investors emerging in the European travel accommodation market. Simultaneously, the Asia-Pacific region would register the fastest CAGR of 20.7% through 2019–2026. International inbound tourist arrivals have grown exponentially over the last five decades. This strong momentum has created a huge positive influence on the travel accommodation sector in the region.
Leading market players include the following:
- Hyatt Hotels Corporation
- Radisson Hotel Group
- Wyndham Destinations
- Red Lion Hotels Corporation
- Oyo Rooms
- Marriott International
- Airbnb Inc.
- A&O Hotels
- Hostels GmbH