Tourism and Hospitality Market Size (2024 – 2030)

The Tourism and Hospitality Market was roughly valued at USD 24.61 billion in 2023 and a market size of USD 34.01 billion by the end of 2030 is estimated to be achieved. Over the forecast period of 2024-2030, the market is estimated to grow at a CAGR of 4.73%. 

The Tourism and Hospitality Market is the biggest industry in the world, contributing 10% of the global GDP. Globalization has made tourism a famous leisure activity around the world. Tourism has become famous around the world as a leisure activity owing to its comfortable traveling facilities. The tourism and hospitality market has developed into a multi-billion-dollar industry. The improvement in the global tourism and hospitality market is due to stable economic growth followed by a rise in per capita income. Stable economic growth is estimated to boost the global tourism and hospitality market. With better revenue capacity and the development of emerging markets, in the tourism and hotel industry, the capacity, and scope of the global tourism and hospitality market are estimated to grow. Emerging countries now offer a bigger market share than developed nations. Government agencies and organizations are encouraging tourism to attract numerous tourists from around the world. These initiatives result in the growth of the global tourism and hospitality market.

Key Market Insights:

• India's hospitality sector is being influenced by the growth in the count of hotel projects. India's Hospitality Industry shut down in the present year with occupancy in the 59-61 percent range, up 15-17 percentage points (pp) from the last year. However, average rates (ARR) recovered completely in the present year, being 37-39 percent higher than the previous year's benchmark. Resultantly, RevPAR in the current year grew by 89-91 percent over the last year.

• Persuaded by a strong recovery in demand, hotel companies escalated their growth plans in the current year, leading to an over 33 percent growth in brand signings by keys over the previous year. Hotel entrepreneurs continued to widen their portfolios in leisure destinations as well as Tier-3 and -4 cities, recognizing the huge untapped capacity in these areas.

• Moreover, more than 200 G20 meetings were expected to be conducted across 55 destinations in the country during India's G20 presidency. The Indian hotel market earned majorly from this event, as there will be major exponential requirements for hotels in the cities where the meetings were held.

Tourism and Hospitality Market Drivers:

Growth in income is a major driver propelling market growth.

The increase in income is propelling the growth of the global tourism and hospitality market. Traveling has become increasingly usual all over the world. Hence, expenditure on leisure travel and business travel has seen a yearly growth. This rise in travel has also permitted the number of hotel customers and in turn, the hospitality markets to develop. The escalation of the international Tourism market also aids other industries to develop such as the airline industry. Key influencers in this market involve lowering ticket prices, as ticket charges are falling credit to several elements, from lower fuel charges, competition from airlines, and demand in airline companies.

Tourism and Hospitality Market Restraints and Challenges:

The pandemic health crisis has directly impacted the tourism and hospitality markets. Restricted domestic and international travel due to fear and limitations due to Covid-19 has affected in slower development in the global tourism and hospitality industry. Domestic tourism is being heavily emphasized, but domestic guests are uncertain to push the industry as a whole. Individual nations mainly rely on international arrivals. Large chains were compelled to lay off huge numbers of employees, generating an exodus of workers from the global hospitality industry. Terrorism has affected tourists' perceptions of travel and the risks related to it, detrimentally affecting the global tourism and hospitality industry. The high protection risks for tourists traveling to underdeveloped and developing nations pose an immense threat to the global international tourism market.

Tourism and Hospitality Market Opportunities:

Government initiatives to support the industry

The Indian hospitality sector is directed primarily by buoyant domestic requirements, the bounce back of inbound travel, and the Indian government's renewed focus on the expansion of the tourism industry, which is estimated to dedicate USD 250 billion to the country's GDP by 2030. The Government is identifying the significance of the tourism sector as an employment generator and is observing to encourage the sector on a mission mode with active inclusion from all stakeholders, constituting public-private partnerships. The reengineering of 50 extra airports, heliports, and water aerodromes to raise geographical air connectivity and the development of fifty tourism destinations as a complete package for domestic and international tourism, as well as the government's continued stress on infrastructure growth, consisting of the important investment in railways and last-mile connectivity, bodes well for the sector. Moreover, the decrement in personal income tax will raise disposable income, which will influence demand in the tourism and hospitality sectors. As per the Indian Tourism Statistics current year report, India earned 677.63 million domestic tourist visits in the previous year. The percentage has risen by 11.05% from 610.22 in the last year. The top states concerning domestic visits were Tamil Nadu, Uttar Pradesh, Andhra Pradesh, and Karnataka.

TOURISM AND HOSPITALITY MARKET REPORT COVERAGE:

Tourism and Hospitality Market Segmentation: By Type

• Domestic Tourism

• International Tourism

International Tourism is expected to lead the global market. The international tourism market is estimated to rise at a high rate owing to its popularity mainly due to people around the world having more money in their wallets, as well as the result of larger globalization.

Tourism and Hospitality Market Segmentation: By Services

• Accommodation

• Food & Beverages

• Recreation & Entertainment

• Transportation

• Travel

The Food & Beverages segment is the biggest in the global international tourism market, it is formed of establishments that offer food, snacks, and drinks for instant consumption, inside or outside the premises Facilities.

The Accommodation sector is anticipated to be the fastest-growing market in the global international tourism market. The Accommodation sector covers an extremely versatile spectrum of characteristics and consists of luxury palaces, boutique hotels, bed and breakfasts, campsites, inns, and other establishments.

Tourism and Hospitality Market Segmentation: By Travel Model

• Business Travel

• Leisure Travel

• Other Activities

Business Travel is the dominant segment owing to the pace at which it's growing. Nowadays, there is a growth in ‘Bleisure’ travel which is the mixing of business with recreational interests on professional trips. Industrial analysis shows that approximately 49% of people have stretched business trips to a leisure trip or planned a business travel break to preserve holiday expenses.

Tourism and Hospitality Market Segmentation: By Region

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

The North American region is anticipated to face the most significant market development. Europe is the greatest market concerning the global travel and tourism industry. The Latin American region is estimated to strengthen at a quicker pace due to the development of cruise tourism in the region. The Middle East & African regions are predicted to have tremendous growth due to the latest developments in the region.

COVID-19 Impact Analysis on the Tourism and Hospitality Market:

The Hospitality market faced major challenges in 2020 due to the spread of the COVID-19 disease, owing to widespread limitations on domestic and international travel put by governments worldwide. These measures majorly lowered the demand for services provided by hospitality establishments. COVID-19, diagnosed by flu-such as symptoms such as fever, cough, and respiratory concerns, was initially identified in Wuhan, Hubei province, China, in 2019, subsequently spreading worldwide to regions involving Western Europe, North America, and Asia. National governments reacted to the crisis by taking up containment measures, constituting lockdowns, resulting in a marked fall in economic activity. The negative effects of the pandemic continued to affect businesses throughout 2020 and extended into 2021. Despite the challenges and threats posed by the uncertain circumstances of the COVID-19 outbreak, the hospitality market recovered over the years.

Latest Trends:

The hospitality industry is going through a transformative stage with the integration of cutting-edge technologies that majorly increase the customer experience while driving improvements and cost cuttings. Notable modernizations in this sector involve the adoption of near-field communication (NFC) technology, infrared technologies, and the set-up of robots. NFC technology ensures seamless data exchange between equipment, facilitating instant and safe mobile payments. Infrared sensors find uses in answering customer complaints associated with housekeeping disruptions, facilitating a smoother and more comfortable stay. Hotels are increasingly leveraging robots for activities such as providing amenities to guest rooms and performing numerous functional roles. Resultantly, hotel operators are strategically deploying automated systems and technologies to narrow processes and customize experiences for their guests.

Key Players:

1. Compass Group Holdings plc

2. Starbucks Corporation; Sodexo SA

3. Marriott International Inc

4. Aramark Corporation

5. McDonald's Corporation

6. Four Seasons Hotels and Resorts Limited

7. Darden Restaurants Inc.

8. Yum China Holdings Inc.

9. Hilton Worldwide Holdings Inc.

10. Chipotle Mexican Grill Inc.

Recent Developments

• In April 2023, three international hotel chains officially confirmed the debut of their luxury brands in India. Hilton's Waldorf Astoria and Minor Hotels' Anantara brands are all ready to make their India debut in Jaipur, while Radisson has chosen Hyderabad for the launch of its Radisson Collection brand. Fairmont Hotels & Resorts announced that it would be inaugurating a property in Agra in 2025.

• In January 2023, Marriott made it official about the opening of the debut property of Westin Hotels and Resorts in Uttarakhand with the commencing of The Westin Resort and Spa, Himalayas.

• In January 2023, Six Senses Hotels and Resorts officially confirmed the inauguration of Six Senses Vana, the brand's first dedicated Wellness Resort. The Himalayan retreat marks the next Six Senses property in India after its first Six Senses Fort Barwara.