Travel Accommodation Market Report 2026

The travel accommodation market size has grown strongly in recent years. It will grow from $776.07 billion in 2025 to $845.7 billion in 2026 at a compound annual growth rate (CAGR) of 9%. The growth in the historic period can be attributed to growth of global tourism, expansion of hotel infrastructure, rise of online travel agencies, increasing leisure travel, urbanization trends.

The travel accommodation market size is expected to see strong growth in the next few years. It will grow to $1.18 trillion in 2030 at a compound annual growth rate (CAGR) of 8.9%. The growth in the forecast period can be attributed to technology enabled booking growth, demand for alternative lodging, sustainability focused travel, expansion of experiential tourism, personalization of accommodation services. Major trends in the forecast period include growth of online travel booking platforms, rising demand for flexible accommodation options, expansion of vacation rentals, focus on sustainable lodging, personalized stay experiences.

The rise in international business tourism is expected to accelerate the growth of the travel accommodation market in the coming years. International business tourism refers to cross-border travel undertaken for professional purposes such as meetings, conferences, exhibitions, and corporate events. The expansion of international business tourism is driven by factors including globalization, economic development, trade agreements, corporate expansion, the increasing number of conferences and exhibitions, intensifying market competition, infrastructure improvements, cultural exchange, and the growing adoption of remote and hybrid work models. Travel accommodation providers play a vital role in supporting international business tourism by offering comfortable and conveniently located lodging that enables business travelers to concentrate on their professional commitments. For example, in May 2024, according to the Office for National Statistics Census, a UK-based government agency, UK residents undertook 6.3 million international business trips in 2023, up from 4.9 million trips in 2022. Therefore, the expansion of international business tourism is driving growth in the travel accommodation market.

Major companies operating in the travel accommodation market are increasingly investing in technological innovations, including AI-powered booking platforms, to strengthen their competitive position. AI-driven booking platforms are digital systems that use artificial intelligence technologies to simplify and enhance the process of reserving travel accommodations and related services. These platforms apply AI to deliver faster, more personalized, and user-friendly booking experiences. For instance, in March 2024, Bag2Bag, an India-based hospitality company, introduced India’s first generative AI-powered online hotel booking platform. The platform features instant room allocation based on user preferences and dynamic, real-time pricing adjustments driven by demand. It also offers personalized accommodation recommendations and a seamless booking process, significantly reducing the time users need to search for and reserve lodging. These advancements enhance customer satisfaction while optimizing hotel operations, resulting in improved occupancy rates and more effective revenue management.

In February 2024, ComfortDelGro, a Singapore-based transportation group, acquired CMAC Group for $86.92 million. This acquisition strengthens ComfortDelGro’s presence in the UK, broadens its portfolio within the ground transportation sector, and aligns with the company’s strategic growth objectives, reinforcing its commitment to expanding its international operations. CMAC Group is a UK-based provider of transportation and accommodation services.

Major companies operating in the travel accommodation market are Marriott International Inc., MGM Resorts International, Radisson Hotel Group, Expedia Group Inc., Hilton Worldwide Holdings Inc., Airbnb Inc., Hyatt Hotels Corporation, Accor S.A., InterContinental Hotels Group plc, 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, Huazhu Group Limited.

North America was the largest region in the travel accommodation market in 2025. The regions covered in the 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 travel accommodation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, 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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