Global Travel Accommodation Market Is Expected To Reach $1,974.30 Billion By 2031
As per report, the global travel accommodation market is expected to reach $1,974.30 billion worldwide by 2031.
The global travel accommodation market is growing due to development in the global tourist industry, a surge in the trend of business travel, and an increase in booking sources such as travel agencies, internet platforms, and hotel websites.
However, the rise in online booking scams is limiting industry expansion.
On the other hand, the increasing popularity of vacation rentals such as Airbnb, Homeaway, and others, as well as the availability of budget-friendly and luxury stays, present new market potential.
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As a result of the beginning stages of the Covid-19 pandemic, there was a ban on travel both domestically and internationally, which had a negative influence on the market for travel accommodations.
In an effort to limit the number of people who become infected with the COVID-19 virus, many nations have imposed travel and tourism restrictions.
Because of this, there was a subsequent drop in demand for vacation lodging.
Following the proclamation that COVID-19 is a pandemic, practically all of the global locations put travel restrictions into effect, as stated by the United Nations World Tourism Organization (UNWTO).
Additionally, this had an impact on business travel and accommodations for business travelers all around the world.
When compared to 2019, the number of tourists arriving from other countries fell by about 74% during the year 2020.
This aspect had a significant impact on the demand for travel accommodations, which in turn led to significant financial losses for market participants.
By the year 2020, the number of tourists arriving from other countries had dropped by approximately 1 billion.
This resulted in losses in tourism exports of around $1.3 trillion as a direct consequence.
In addition, this aspect had a detrimental impact on the market for travel accommodations.
Hotels accounted for the greatest market share in 2021, contributing approximately one third to the total value of the worldwide travel accommodation market.
It is anticipated that the hotels segment will continue to hold its leading position throughout the time covered by the forecast.
This is as a result of the provision of guest services to tourists at predetermined prices.
Examples of such services include short-term housing and food.
On the other hand, it is anticipated that the vacation rentals sector will experience the highest CAGR of 12.4% between the years 2022 and 2031.
This is due to an increase in the marketing efforts carried out by service providers as well as a surge in the adoption of westernized trends.
The leisure segment contributed the highest market share in 2021, accounting for more than two-thirds of the global travel accommodation market, and is expected to maintain its dominant share during the forecast period.
This was due to the fact that the leisure sector was the application that generated the most demand.
In addition, it is anticipated that this market segment will exhibit the highest CAGR of 11.6% between the years 2022 and 2031.
This is as a result of an increase in the amount of discretionary income that Asian tourists have, as well as an increase in the amount of their busy schedules, which leads them to prepare for leisure tours and stays.
The research also provides an analysis of the different categories, such as the professional and other segments.
The direct booking sector accounted for the largest market share in 2021, owning over three-fourths of the worldwide travel accommodation market, and it is anticipated to continue its maximum contribution throughout the forecast period.
This was determined based on the mode of booking.
This can be explained by the convenience offered by this way of booking as well as the absence of fraudulent activities that are associated with direct booking.
In addition to that, the study provides an analysis of various market segments, such as online travel agencies and others.
Europe held the greatest market share in 2021, accounting for about two-fifths of the worldwide travel accommodation industry, and is predicted to maintain its lead status until 2031.
This was based on the region.
This is as a result of the vast availability of tourist places, the variety of options available for places to stay, and the rise in leisure travel in the region.
However, it is anticipated that Asia-Pacific will record the highest CAGR of 12.4% between the years 2022 and 2031.
This is due to an increase in the amount of discretionary income that travelers in the region have, as well as supportive government initiatives that promote tourism in their respective countries.