GLOBAL HOTEL INDUSTRY MARKET
The hotel business is one of the most significant components of the broader service industry, providing to clients that need overnight lodging. It is closely connected with the travel and hospitality industries, however there are significant distinctions in scope. This page will teach you more about the hotel business, its connections to other service industry sectors, and the many types of hotel and guest accommodations available.
A hotel, in broad terms, is a controlled building or institution that offers guests a place to stay overnight – on a short-term basis – in exchange for money. The exact amenities and services given to visitors might vary greatly from one hotel to the next, and hotel owners typically seek to target a specific sort of client through their pricing model and marketing approach, or by the range of services they offer.
The hotel business is the segment of the service sector that deals with visitor housing or accommodation. Most definitions of the hotel business include not only hotels, but also many other types of overnight lodging, such as hostels, motels, and inns. The hotel sector is exclusively concerned with the provision of lodging and related services to guests. The hospitality sector, on the other hand, is concerned with leisure in a broader sense. As a result, it includes lodging, restaurants, bars, cafés, nightlife, and a variety of travel and tourism services.
GLOBAL HOTEL INDUSTRY MARKET DYNAMICS
The expansion of the travel and tourism sector, as well as shifting patterns in living standards, have resulted in progressive growth in the luxury hotel market trends. The demand for luxury hotels varies by property type and is affected by factors such as location, size, and on-site amenities. Rising disposable income, the popularization of weekend culture, the advent of low-cost airline services, and a thriving service industry are all projected to propel the market. Inflationary pressures on buying power and living standards are two of the primary factors driving people to luxury resorts. Hosting sporting events by a city or country is another important aspect.
Among tourists, there is a rising trend of experiencing a luxurious lifestyle during vacations or holidays. They regard it as a very peaceful and refreshing holiday experience. This is growing popular among newlyweds and older adults, who describe their luxurious stay as a once-in-a-lifetime opportunity. It has been a tendency in the luxury hotel business to advertise their products while retaining their brand image; for this, numerous techniques and endorsements are used.
The increasing tourism and hospitality industries are largely driving the industry. Furthermore, the working population’s rising demand for weekend vacations, as well as their shifting lifestyle habits, are pushing market growth. Furthermore, the growing demand for staycations and weekend getaways in luxury hotels for remote working is boosting the global industry. In addition, increased social media penetration and cooperation between hotels and influencers are driving product demand.
Over the projection period, the Asia Pacific area is expected to have the greatest growth rate. The European market has grown in popularity as a result of government attempts to promote tourism in their country and local regions by raising awareness about architectural or historical value. People’s growing incomes in developing economies such as India, China, Thailand, Brazil, and South Africa are expected to fuel the global tourist sector, benefiting the entire business. Countries experiencing political upheaval, economic crises, and rigorous Foreign Direct Investment (FDI) rules are expected to see market development stall or stop.
GLOBAL HOTEL INDUSTRY MARKET DEVELOPMENTS AND INNOVATIONS
|S No||Overview of Development||Development Detailing||Region of Development||Possible Future Outcomes|
|1||ITC Hotel to launch new luxury hotel brand Mementos across destinations||ITC Hotel is set to launch a destination-led luxury brand called Mementos adding to its bouquet of five brands including the recently announced Storii. Mementos would be aimed at addressing the need for boutique luxury hotels across various destinations.||Global||Better Accessibility and Innovation|
GLOBAL HOTEL INDUSTRY MARKET SEGMENTATION
The Global Hotel Industry Market can be segmented into following categories for further analysis.
By Class Of Hotel Type
- Luxury Class Hotels
- Economic Class Hotels
- Business Hotels
- Suite Hotels
By Presence Classification Type
- International Chain of Hotels
- Domestic Chain of Hotels
By Room of Usage Type
- Luxury Rooms
- Upper Class Rooms
- Economical Class Rooms
- Upscale Rooms
By Regional Classification
- Asia Pacific Region – APAC
- Middle East and Gulf Region
- Africa Region
- North America Region
- Europe Region
- Latin America and Caribbean Region
RECENT TECHNOLOGICAL TRENDS IN GLOBAL HOTEL INDUSTRY MARKET
The industry of hotels offer travellers and tourists a high-end lodging experience, including amenities such as discreet check-in and check-out, heated & fresh water swimming pool (many hotels offer private swimming pools), spa, fitness area, and others (including customised services) that set them apart from other ordinary hotels. The rise in demand for luxury stays as a result of changing consumer preferences and improvements in hotelier services fuels the expansion of the hotel sector.
Aside from leveraging technology to better serve customers, hotels’ operational efficiency and marketing capacities have improved. Operations software may enhance communication, reduce staff time, and potentially save the property money. The latest technology has been the integration of the new smart room. Aside from leveraging technology to better serve customers, hotels’ operational efficiency and marketing capacities have improved. Operations software may enhance communication, reduce staff time, and potentially save the property money.
As part of an integrated approach, the software solution requirements of IoT are being implemented within the Smart home automation systems. The Internet of Things (IoT) enables numerous devices to be connected to the internet and controlled by a single central source, such as a phone or tablet. Everything in a smart hotel room, digital key cards, and even voice-controlled customer service are examples of IoT applications. IoT enables visitors to effortlessly manage and customize everything in their accommodation. They are also beneficial in operations, owing to the fact that IoT functions as a smart hotel technology, utilizing data to identify and fix concerns before they become larger difficulties.
The rise in the travel and tourism sector, an increase in the demand for leisure travel, and an improvement in the level of living are the primary forces fueling the expansion of the luxury hotel market. However, an increase in hotel prices is likely to stifle industry development. In the future years, the emergence of new luxury hotels is expected to open up new economic prospects for the sector. In 2020, the movement toward digital and contactless services gained traction. Customer-facing services are being redesigned as a result of the increased usage of technology-assisted alternatives such as mobile check-in, contactless payments, voice control, and biometrics.
Marriott International Inc. is one of the leading international hotels chain operating on a global scale of market which covers in most of the important tourism destinations on the planet. In its most recent initiative, With a long-term partnership with Sunwing Travel Group’s hotel division, Blue Diamond Resorts, Marriott’s All-Inclusive portfolio is expanding. By adding 19 franchised resorts across six countries and more than tripling the company’s footprint in the all-inclusive sector to 33 properties by 2025, the deal is anticipated to catapult Marriott into the top ten worldwide all-inclusive players. The chain has been operating a total of 8,000 approx. International footprint based on the resorts and premium hotel requirements.
Hyatt Hotel is part of the digitization procedures and implementation in the hospitality and hotel industries on global scale of operations. The technology has an integrated approach towards the guest and customer satisfaction. The guests may browse hotel information for over 700 hotels and resorts in eight different languages with the World of Hyatt app. The app includes information about hotel facilities, maps, pictures, weather, activities, restaurants, rooms, special deals, and room rates in 57 currencies. Guests may also use World of Hyatt reward points, book points plus cash awards, book award nights, and use corporate and discount coupons while making a reservation. Hyatt Hotels has also initiated a VR based experience. The VR is also part of the latest digitization process which brings in better levels of display requirements.
- Marriott International
- Hilton Worldwide
- Starwood Hotels & Resorts
- Hyatt Hotels Corporation
- Four Seasons Holdings Inc.
- Shangri-La International
- InterContinental Hotels Group
- Mandarin Oriental International
- The Indian Hotels Company
- Jumeirah International LLC
- Kerzner International Resorts
- ITC Hotels Limited
- Belmond Limited