PUBLISHER: Fairfield Market Research | PRODUCT CODE: 1394115
PUBLISHER: Fairfield Market Research | PRODUCT CODE: 1394115
According to a recent study conducted by Fairfield Market Research, the global hotel gift card market reached a remarkable revenue of US$ 65 billion in 2024. The market is poised to witness substantial growth with a projected market valuation of US$ 200 billion by the year 2031.
The study reveals that millionaires are playing a significant role in driving the sales of hotel gift cards. Millionaires are more inclined to purchase hotel gift cards, whether they are open or closed loop, compared to other consumer groups. This growing interest is attributed to working millionaires showing an increased preference for hotel stays and the use of E-gift cards, thus contributing to the overall market expansion.
With increasing environmental awareness among millionaires, gift card manufacturers have responded by producing environmentally friendly and biodegradable hotel gift cards. These cards, made from recycled materials like PVC and wood, have gained popularity among consumers who are conscious of sustainability. The demand for these eco-friendly gift cards is boosting the hotel gift card market.
Social media has emerged as an effective marketing tool for hotels to attract millennials, the generation that actively seeks out second opinions and influences from various sources. Platforms like Instagram, Facebook, and YouTube have become essential for hotels to engage with millennials. Additionally, millennials' gifting culture and evolving lifestyles have made gift cards a popular choice among this demographic, further boosting the market.
Personalized gifting has gained immense popularity, especially on e-commerce portals. Consumers are enthusiastic about adding personalized notes to their gifts, reflecting their emotions and sentiments. The market for hotel gift cards is expected to benefit from this trend, as more consumers seek uniquely designed gift cards with bespoke messages for their loved ones.
The shift towards E-gift cards is transforming the hotel gift card landscape, enabling hotels to cater to their clients' needs more effectively and offer creative promotions. Collaboration with e-commerce businesses has allowed hotels to offer gift cards on a global scale, leading to a substantial increase in sales. For instance, The Oberoi Group has partnered with independent e-commerce vendors like Amazon.com, Inc., expanding the availability of its gift cards and boosting revenue.
As the demand for hotel gift cards continues to rise, numerous market players are expanding their market share through various strategies. Leading hotel businesses are focusing on customer retention, frequent product launches, unique vacation packages, expanding their customer base, and exploring merger and acquisition opportunities to stay competitive in the market.