Hotel and Other Travel Accommodation Market Report 2026

The hotel and other travel accommodation market size has grown strongly in recent years. It will grow from $1.35 trillion in 2025 to $1.43 trillion in 2026 at a compound annual growth rate (CAGR) of 6%. The growth in the historic period can be attributed to growth of global tourism, expansion of hotel chains, rise of leisure travel, increasing disposable incomes, development of travel infrastructure.

The hotel and other travel accommodation market size is expected to see strong growth in the next few years. It will grow to $1.87 trillion in 2030 at a compound annual growth rate (CAGR) of 7%. The growth in the forecast period can be attributed to growth of experiential tourism, rise of domestic travel, digital booking penetration, demand for flexible stays, investment in accommodation upgrades. Major trends in the forecast period include growth of alternative accommodation options, expansion of online booking channels, rising demand for sustainable stays, increase in experience based travel lodging, adoption of smart room technologies.

The growing use of social media and wider access to mass media are positively influencing the tourism and hotel industries. As travelers share their experiences, photos, and videos across social media platforms, awareness of tourist destinations and recreational offerings in different countries continues to increase. This digital exposure inspires travel decisions and shapes accommodation demand by highlighting destinations and lodging experiences to a global audience. For example, in November 2024, according to the Office of Communications (Ofcom), a UK-based government body, Reddit became the fastest-growing major social media platform in the UK by June 2024, reaching 24.6 million users, or 52% of online adults. Its user base grew by 47% year on year, surpassing X (formerly Twitter) and LinkedIn to become the fifth-largest platform. Adoption was particularly strong among younger users, with 71% of individuals aged 18-24 and 63% of those aged 25-34 using Reddit, up from 58% and 49% respectively in the previous year. Therefore, the increasing use of social and mass media is driving demand for hotel and other travel accommodation markets.

The expansion of the tourism sector is expected to further propel the growth of the hotel and other travel accommodation markets in the coming years. Tourism is a cultural, social, and economic activity that involves people traveling beyond their usual environment for personal, business, or professional purposes. Hotels and other travel accommodations are central to the tourism ecosystem, providing comfortable and convenient lodging while contributing significantly to local economies through visitor spending and employment generation. They play a vital role in attracting tourists and enhancing overall travel experiences. For instance, in May 2024, according to the Office for National Statistics Census, a UK-based government agency, UK residents took 6.3 million international business trips in 2023, an increase from 4.9 million trips in 2022. Therefore, the growing tourism sector is supporting the expansion of the hotel and other travel accommodation markets.

Major companies operating in the hotel and other travel accommodation market are focusing on the development of pod hotels to offer affordable and space-efficient lodging solutions tailored to the needs of cost-conscious travelers seeking modern and distinctive experiences. Pod hotels are a type of accommodation featuring compact, modular sleeping units designed to maximize space utilization while maintaining comfort and privacy. For example, in September 2024, JPOD Hotels Group, an Ireland-based company, launched a pod hotel at Rajiv Gandhi International Airport in Hyderabad. Located near the City Side Check-In area at the car park level, the facility is designed to improve passenger convenience by providing a modern lodging option within the airport environment. The JPOD Hotel offers private spaces for rest, work, or relaxation, equipped with contemporary amenities that suit both business and leisure travelers, making it a practical choice for passengers with varying travel needs.

Major companies operating in the hotel and other travel accommodation market are Marriott International, MGM Resorts International, InterContinental, Hilton Worldwide Holdings, Accor Hotels, Shanghai Jin Jiang International Hotels Group Company Limited, The Ascott Limited, BTG-Jianguo Hotels and Resorts Co. Ltd, Guangdong International Hotel Management Holdings Ltd, Jining Hotel Corporation Ltd, Hyatt Hotels Corporation, Radisson Blue Hotels, Shangri La Hotels and Resorts, Taj Hotels Resorts and Places, The Lalit Hotels, The Leela Palace, The Oberoi Group, Relais Bourgondisch Cruyce, NH Collection Brussels Grand Sablon, Hotel Academie, Thon Hotel Bristol Stephanie, Pillows Grand Boutique Hotel Reylof, Boutique Hotel Am Stephansplatz, Hotel Sans Souci Wien, Hotel Kaiserhof Wien, Cap Estel, Aman Le Melezin, Shangri La Hotel Paris, Hotel Residence Agnes, Hotel Pod Vezi, Grandium Hotel Prague, Metropolitan Boutique Hotel, Puro Krakow Kazimierz, Puro Warszawa Centrum, AM Resorts, Moon Palace Golf and Spa, The Venetian Resort Las Vegas, The Signature, CityCenter, Wynn Las Vegas, Encore Las Vegas, Luxor Las Vegas, Resorts World Las Vegas, Host Hotels and Resorts Inc, Huazhu Group Ltd, Wyndham Hotels and Resorts Inc, Park Hotels and Resorts Inc, Louvre Hôtels, Choice Hotels International, NH Hotel Group, Saleh Bin Lahej Group, Emaar Hospitality Group, Jumeirah Group, Al Khozama Management Company, Rotana, Tsogo Sun, City Lodge Hotel Group, Louvre Hotels Group, Radisson Hotel Group.

Asia-Pacific was the largest region in hotel and other travel accommodation in 2025. North America was the second largest region accounting in the global hotel and other travel accommodation market. The regions covered in the hotel and other travel accommodation market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the hotel and other travel accommodation market report are China, India, Japan, Australia, Indonesia, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, Taiwan, New Zealand, UK, Germany, France, Italy, Spain, Austria, Belgium, Denmark, Finland, Ireland, Netherlands, Norway, Portugal, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The hotel and other travel accommodation market includes revenues earned by entities by providing short-term lodging services such as hotels, motor hotels, resort hotels, and motels. The establishments in this industry may offer food and beverage services, recreational services, conference rooms, convention services, laundry services, parking, and other services. This market includes revenues from sales by restaurants to a delivery service but not the revenues of the delivery service itself. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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