Travel Accommodation Global Market Report 2025

The travel accommodation market size has grown strongly in recent years. It will grow from $713.44 billion in 2024 to $776.07 billion in 2025 at a compound annual growth rate (CAGR) of 8.8%. The growth in the historic period can be attributed to emerging trend of traveling for experiences, expanding reach of online booking platforms, increasing disposable income, improved earning capacity, and growth in the hotel industries.

The travel accommodation market size is expected to see strong growth in the next few years. It will grow to " $1.09 trillion in 2029 at a compound annual growth rate (CAGR) of 8.9%. The growth in the forecast period can be attributed to growth in international business tourism, growing high demand for vacation hotels, increasing tourism and social engagement, rising aging population and early retirement, and rising participation in outdoor activities. Major trends in the forecast period include adoption of smart hotel technologies, development of eco-friendly accommodations, rising of the experience economy, tech-enabled transformation, and rising of vacation rentals.

The forecast of 8.9% growth over the next five years reflects a slight reduction of 0.1% from the previous projection. This reduction is primarily due to the impact of tariffs between the US and other countries. The imposition of tariffs may broadly increase U.S. lodging costs by raising prices for energy-efficient heating, ventilation, and air conditioning systems and keyless entry tech from Germany/Sweden. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The growth of international business tourism is anticipated to drive the expansion of the travel accommodation market. International business tourism involves cross-border travel for purposes such as meetings, conferences, and corporate events. The rise in international business tourism is attributed to factors such as globalization, economic growth, trade agreements, corporate expansion, an increase in conferences and exhibitions, market competition, infrastructure development, cultural exchange, and the emergence of remote and hybrid work models. Travel accommodations are essential for international business tourism as they offer convenient and comfortable lodging, allowing business travelers to concentrate on their professional activities. For example, in May 2024, the Office for National Statistics Census, a UK-based government agency, reported that UK residents took 6.3 million international business trips in 2023, up from 4.9 million in 2022. Thus, the increase in international business tourism is boosting the travel accommodation market.

Companies in the travel accommodation market are focusing on technological innovations, such as AI-driven booking platforms, to stay competitive. AI-driven booking platforms are online systems or apps that use artificial intelligence (AI) to improve and streamline the booking of travel accommodations and related services. These platforms leverage AI to offer more efficient, personalized, and user-friendly experiences. For instance, in March 2024, Bag2Bag, an India-based hospitality company, launched India's first generative AI online hotel booking platform. This platform features instant room allocation based on user preferences and real-time pricing adjustments according to demand. It also provides personalized recommendations and a smooth booking experience, significantly reducing the time needed for users to find and book accommodations. These advancements enhance customer satisfaction and optimize hotel resource management, resulting in higher occupancy rates and better revenue management.

In February 2024, ComfortDelGro, a Singapore-based transport group, acquired CMAC Group for $86.92 million. This acquisition strengthens ComfortDelGro's presence in the UK, expands its ground transportation portfolio, and aligns with its strategic growth objectives, emphasizing its commitment to expanding its international reach. CMAC Group is a UK-based company specializing in transport and accommodation solutions.

Travel accommodation refers to lodging options available for travelers, including hotels, motels, resorts, hostels, vacation rentals, and bed and breakfasts. These facilities offer temporary housing along with various amenities to ensure comfort and convenience during a trip.

The main types of travel accommodation are hotels, hostels, resorts, vacation rentals, and other options. Hotels provide lodging, meals, and additional guest services. They are available at different price points, such as economy, mid-range, and luxury. Booking can be done through various methods, including direct booking, online travel agencies, and other channels. These accommodations cater to different applications, such as leisure, professional, and other purposes.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp rise in U.S. tariffs and resulting trade tensions in spring 2025 are significantly affecting the hospitality sector, especially in areas reliant on imported food and beverage products, furnishings, electronics, and kitchen equipment. Hotels and restaurants are grappling with increased costs for items such as imported wine, seafood, coffee machines, linens, and smart appliances, many of which lack viable domestic substitutes. Budget and mid-range hospitality operators, already working with narrow profit margins, are particularly at risk, with some opting to scale back services or postpone renovations to control costs. Event venues and catering businesses are also facing challenges due to higher prices for imported décor, lighting, and audiovisual gear. In response, the sector is increasingly turning to local suppliers for food and furnishings, renegotiating contracts, and pushing for tariff exemptions on essential imports.

The travel accommodation market research report is one of a series of new reports that provides travel accommodation market statistics, including the travel accommodation industry global market size, regional shares, competitors with travel accommodation market share, detailed travel accommodation market segments, market trends, and opportunities, and any further data you may need to thrive in the travel accommodation industry. These travel accommodation market research reports deliver a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

Major companies operating in the travel accommodation market are Alibaba Group Holding Limited, American Airlines Inc., Marriott International Inc., MGM Resorts International, Radisson Hotel Group, Expedia Group Inc., JetBlue Airways Corporation, Hilton Worldwide Holdings Inc., Airbnb Inc., Hyatt Hotels Corporation, Accor S.A., InterContinental Hotels Group plc, Hays Travel Limited, Shanghai Jin Jiang International Hotels (Group) Company Limited, Tripadvisor Inc., Choice Hotels International Inc., Wyndham Destinations, The Ascott Limited, Oravel Stays Private Limited, Vrbo, Red Lion Hotels Corporation, eLong Inc., A&O Hotels and Hostels GmbH, Rewe Group, Tuniu Corporation.

North America was the largest region in the travel accommodation market in 2024. The regions covered in the travel accommodation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the travel accommodation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The travel accommodation market includes revenues earned by entities by providing lodging, room service, housekeeping, concierge assistance, and access to facilities such as pools, gyms, and dining establishments. The market value includes the value of related goods sold by the service provider or included within the service offering. 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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