As per our research report, the Global State of Hospitality Market size is estimated to be growing at a CAGR of 16.16% from 2023 to 2030.
The pandemic negatively impacted the state of the hospitality market. Due to travel restrictions across geographical borders, there was a decline in demand for hospitality services. These include a decline in demand for accommodation, dining, and entertainment services, a reduction in air travel, and others. Moreover, the closure of various restaurants and hotels affected the food and beverage sector and declined consumer demand for in-person dining. Entertainment services, too, took a downturn as social distancing norms were imposed. However, family and social gatherings shifted to online platforms, wherein people celebrated birthdays, and anniversaries, played games, and others. This, however, did not have a monetary impact on the hospitality sector, as there was no consumption of hospitality services.
Furthermore, during the later phase of the pandemic, the hospitality sector witnessed a revival, with the opening of restaurants and hotels with limited occupancy and for limited hours. Moreover, an increase in health and hygiene awareness among consumers increased the use of contactless menus and payments in restaurants.
Post-pandemic, the hospitality sector witnessed a quick revival, as people, especially families spent on long weekend trips to hill stations and beach destinations, for relaxation purposes. Moreover, trekking and trailing increased, as a result of increased health and fitness awareness among people.
The restraints to this market include market saturation, health and hygiene concerns, and safety concerns by families.
Based on market segmentation by type, travel & and tourism occupied the highest share of about 38% in the market. The growth of this segment is attributed to increasing consumer demand for personalized and specialized tourism services, which include booking tickets, hotel reservations, itinerary planning, sightseeing facilities, and others as per their budget. Furthermore, food & beverage is the fastest-growing segment during the forecast period. The growth is attributed to rising consumer demand for a unique dining experience that offers access to authentic cultural dishes, Moreover, a rise in veganism trends is leading to the opening of only vegan restaurants that focus on the health of consumers.
Based on market segmentation by type of customers, family occupied the highest share of about 40% in the market. Families, being the major consumers of hospitality services such as babysitting services, interconnected room services, buffet services, using resort properties for personal functions and weddings, and others have contributed to the growth of the hospitality sector. Moreover, post-pandemic, remote work culture prevailed, which increased the demand for staycation services by families. Furthermore, the solo travelers segment is the fastest-growing during the forecast period. The growth of this segment is attributed to increasing demand for independent and flexible tour plans, which include treks, nature trails, adventure sports, jungle safari, and others.
Based on market segmentation by services, accommodation services occupied the highest share of about 45% in the market. The growth of this segment is attributed to rising consumer demand for varied services while staying in hotels and resorts, which include free room delivery services, free Wi-Fi, access to luxury spas and salons, gym facilities, a pet-friendly environment, and others. Moreover, many of these services are available to consumers based on their budgets and requirements. Furthermore, entertainment & leisure services are the fastest-growing during the forecast period. The growth of this segment is attributed to rising consumer preferences for relaxing and stress-relieving activities. Moreover, the busy lifestyle of people has further increased the trends in weekend party culture, leading to increased demand for fun and recreational activities at various entertainment venues such as nightclubs, pubs, lounges, and gaming parlors, and others.
Based on market segmentation by region, North America occupied the highest share of about 39% in the market. The growth is attributed to the increasing demand of teenagers and young adults for nightlife and other outdoor recreational activities and the surge in demand for alcoholic beverages for relaxation and partying purposes. Furthermore, the Middle East & Africa hold the second largest share of about 25% in the market. The growth is attributed to increasing demand for business trips and luxury travel experiences in countries such as UAE, Saudi Arabia, and Egypt. Moreover, Asia-Pacific witnessed faster growth during the forecast period. The growth is attributed to rising preferences for cultural and wellness tourism, in countries like India, and the rapidly developing food & beverage sector.
Companies playing a leading role in the Global The State of Hospitality market profiled in this report are Marriott International, Taj, Hilton Worldwide Holdings, Compass Group Plc, Sodexo, Aramark Corporation, McDonald’s, Starbucks Coffee, Elior, Jubliant FoodWorks, Radisson Blu, Hyatt Hotels Corporation, American Cruise Lines, and The Happy Catering Company.
Travel & Tourism
Lodging
Food & Beverage
Solo Travelers
Family
Accommodation Services
Food & Beverage Services
Entertainment & Leisure Services
Travel & Transportation Services
Luxury & Boutique Services
Meeting & Event Services
Others
North America
Europe
Asia-Pacific
South America
Middle-East & Africa
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