The hotel industry and the hospitality sector, in general, is one of the world’s fastest-growing divisions of industry in the world. Travel and tourism have helped to ensure that this industry remains afloat despite the tough economic times that have made it impossible for many sectors to survive. In this post, we will be doing a Hotel Industry analysis to shed some light on how and why this industry is one of the fastest growing industries.
We will not be covering the basic of the Hotel industry in this post. For details on various sub-sectors of Hotel industry and background, please check our other article that covers the Hotel Industry Overview.
The Hotel industry over the years has witnessed tremendous growth.
Thanks to the large numbers of huge multi-billion companies that are opening their headquarters in various locations globally, the number of business travellers are expected to continue rising.
As companies in the hotel industry also focus on improving the customer experience, individual travel is also slated to be on the rise.
Moreover, as more millennials start to have disposable income, the demand for luxurious travel will also help to boost the hotel industry’s growth in the next years to come.
So, in a nutshell, the hotel industry is set to keep growing at a rapid pace in the years to come.
Hotel Industry Market statistics
A Hotel Industry analysis reveals that bookings in travel and tourism hit almost $1.6 trillion in 2017 thanks to a strong global economy.
Hotel Industry which is one of the Primary Sectors of the Hospitality Industry constituted for over 30% of this value.
The travel and tourism market is flooded with millions of new customers from all parts of the world; many of whom have access to disposable income and are willing to spend it exploring the world.
- Total retail value of the global hotel industry is set to cross USD 500 Billion in 2018.
- Total revenue of the hotel industry in the USA alone should touch $200 Billion in 2018
- Asia Pacific Region has witnessed the maximum Hotel room occupancy last year with 68.7% occupancy recorded in February 2017.
- Millennial is set to become the biggest consumer sectarian the coming years.
- Travel and tourism is now over 10% worth of the Global GDP and the Hotel Industry accounts for half of that if clubbed with Food & Beverage industry and alternate lodging.
- Corporate travel is expected to rise by 6.1% in 2018.
- Hotel Industry alone is expected to sustain by growing at 6-7% in 2018
- As per the hotel industry overview report of the Deloitte, the mid-scale segment will gain the most in 2018.
Here’s a quick video listing a few more Hotel industry statistics and hotel industry trends in 2018.
Performance of the hotel industry
In order to do the hotel industry analysis holistically, it is also important to check the performance of the hotel industry based on various parameters.
Several Hotel industry reports disclose that there are a number of reasons that have led to the growth of the hotel industry in the past few decades such as:
Healthy Consumer spending
As the economy continues to get stronger and stronger, individuals are also starting to enjoy increased salaries that are enabling them to make healthy spending decisions.
The hotel industry is one sector that is benefiting heavily since it is at the heart of the growth.
According to The Caterer, Consumer spending in the Hotel industry saw close to 5% rise in 2017 even in quarters which proved difficult for other industries.
Competition within the Airline sector
Air travel has become cheaper thanks to competing airlines which has enabled a lot more individuals to travel to various destinations across the world.
International competition, low fuel prices and low-cost entrants in the airline industry will only help to make flights more accessible even to the budget traveller.
The number of international tourist according to the CNN International traveler report 2015 rose to 1.2 Billion in 2015 and is still growing at a rapid pace.
Check out the below image for the trend over the past two decades as far as international travellers are concerned. A big plus for the Hotel industry.
Advancement in Technology
Advances in technology have completely reshaped the way that the hotel industry operates.
Thus it is a must to include in a holistic analysis of the hotel industry.
Thanks to social platforms, people are now more informed than ever about the places that they want to visit, as well as how they want to get there and where they want to stay.
Apart from making it easier for the customer, technology has increased the efficiency of the hotel industry and it has helped greatly to improve the customer experience.
Quality customer experience is gold and it is what will help to drive business activity in the hotel industry.
We have covered a lot of Information technology in the Hotel Industry in our earlier posts. AI in the Hotel industry is another interesting area that already has a mention on this portal among the top Hospitality technology trends.
Here we go, a quick Hotel industry analysis along with some key market statistics. We will keep adding more relevant articles and jobs from the hospitality industry on this portal. So, please stay around and keep coming back.