The State of the Hospitality Market Trends & Growth Report | 2024-2029

The state of the hospitality market was valued at USD 4770 billion in 2023. The state of the hospitality market industry is projected to grow from USD 5539 billion in 2024 to reach USD 11,699 Billion by 2029, exhibiting a compound annual growth rate (CAGR) of 16.13% during the forecast period 2024-2029.

Market Drivers

The state of the hospitality market growth rate is driven by the expanding business scale between countries across the world. People are relatively focused on expanding their business ideas with collaborations and different strategies in other countries where their need to travel every now and then is likely to escalate the growth rate of the market. Also, the rising expenditure on traveling, especially in both developed and developing countries, is attributed to leveraging the growth rate of the market. The interest in exploring the tourist places in today’s generation is prominently aimed at enhancing the opportunities for the state of the hospitality market.

Travel and tourist services have become easy and flexible with the penetration of the internet. People are now able to plan their travel plans through online websites or applications. Artificial intelligence is all set to create huge growth opportunities for the market in the foreseen years. The launch of AI-powered systems in the hospitality industry is subject to streamlining the reservation process and hotel bookings. The ability to plan the trip with a few steps through AI systems is attributed to leveling up the growth rate of the market.

Market Restraints

However, the growing number of hotels and restaurants shall gradually decline the growth rate of the state of the hospitality market. The global economic crisis also negatively impacts the growth rate of the market. The COVID-19 pandemic affected the global economy in an unprecedented way that raised concerns over the economic crisis. The revenue was totally dropped due to lockdown restrictions, and the ban on free movement from one place to another showcased a negative impact on the market’s growth rate.

Segment Analysis:

By Services

  • Accommodation
  • Food & beverage
  • Entertainment & Leisure
  • Travel & Transportation
  • Luxury & Boutique 
  • Meeting & Event
  • Others

Food & beverage and accommodation segments are attributed to register the highest CAGR during the forecast period. The preference for tasty and healthy food options with the best accommodation during travel is gradually increasing among customers, which is straightly propelling the growth rate of the market. Changing customer behavior by carefully booking the plan with the review check that is available in the applications is surging the growth rate of the market.

By Type of Customers

  • Solo Travelers
  • Family

The solo travelers segment is greatly influencing the growth rate of the state of the hospitality market. The unique ideas by hotels for solo travelers that enhance their travel experience with secured locations and helpful staff are amplifying the growth rate of the market. The family segment is expected to have a significant growth rate during the forecast period. In today’s world, the need to live a peaceful life in a busy day-to-day lifestyle by spending some quality time with loved ones is likely to elevate the growth rate of the market.

Regional Analysis:

North America has held the largest share of the state hospitality market for the past few years and is expected to have a significant growth rate during the forecast period. High per capita income and easy approvals for tourist visas to increase the economy in developed countries like the US and Canada are propelling the growth rate of the state of the hospitality market. People’s demand for customized travel plans according to their preference for luxurious and specialized bookings is additionally to promote the growth rate of the market.

Asia Pacific is next to North America, holding a prominent share of the market. The presence of beautiful scenery with diverse cultures in emerging countries like India and China is likely to gear up the growth rate of the state of the hospitality market. These two countries offer stress-free traveling experiences with excellent tourist spots that gear up the number of travelers every year.

  • According to the Ministry of Tourism, more than 92.3 million tourists visited India in 2023 when checked with the Foreigners Tourists Arrivals list. The research studies showcase that the number will be surpassed in 2024 with a high number of tourists.

Europe is expected to have the highest CAGR by the end of 2029. Europe is one of the finest regions with a rich history, diverse culinary scene, and stunning landscapes. Many people show huge interest in the European region, which caters to a wide range of interests and budgets. This capitative region offers the best traveling experience for everyone, and the prominence for better hospitality has greatly been initiated in recent years.

Latin America, and Middle East & Africa are likely to grow steadily during the forecast period 2024-2029.

Recent Market Developments:

  • In 2024, Compass Group Plc came up with a new initiative, ConnectED. This is the first-ever skill center for training existing or new hires to impart the state of hospitality. This initiative is committed to promoting employee development and enhancing the capabilities of the workforce.

Related Reports

ABOUT US:

Market Data Forecast is a firm working in market research, business intelligence, and consulting. We have rich research and consulting experience for various business domains to cater to individual and corporate clients’ needs.

Contact Us:

Market Data Forecast

Website: https://www.marketdataforecast.com

Phone: +1-888-702-9626

Email: contact@marketdataforecast.com