U.S. Hotels, Resorts, and Cruise Lines Market Size, Share, Growth Analysis, By Type(Hotels, Resorts and Cruise) - Industry Forecast 2024-2031

The U.S. Hotels, Resorts, and Cruise Lines Market size was valued at around USD 238.82 Billion in 2022 and is expected to rise from USD 261.03 billion in 2023 to reach a value of USD 531.68 Billion by 2031, at a CAGR of 9.3 % during the forecast period (2024-2031).

The growth of the travel and tourism sectors in the United States is driving demand. 2020 was the worst year ever for the hotel business, with historically low occupancy, a large number of job losses, and hotel closures across the nation. The American Hotel and Lodging Association reports that because travel demand is still below average, national and state projections for 2022 show a delayed recovery for the industry in terms of hotel occupancy in the United States.

As per the Hotel Data Conference Edition, 2021, hotel occupancy rates in Florida surpassed the national average of 48.1%, making it one of the highest in the country. As a result, hotel occupancy has been steadily increasing in the United States since late January 2021, when it reached a record-breaking 58.9%. Even after accounting for hotels that were temporarily closed due to the outbreak, the occupancy rate remained at 55.7%. Furthermore, according to the AHLA's status of the hotel business 2021 research, leisure travel is expected to pick up first due to consumers' trust in the country's vaccine coverage and their ability to travel again in 2021.

Although demand declined in the third quarter of 2021, elderly customers, fully immunized travelers wary of COVID-19, and families impacted by cruise operators' policy of only taking fully immunized passengers over the age of twelve are the main causes of the slowdown. The pandemic forced hotels to reduce their employment levels and give their workers additional responsibilities. Metropolitan hotels have found this difficult because of their bigger average property size and significance as key employers. It may take till group and business travel kicks up again in the coming years for there to be a noticeable increase in hotel employment, as occupancy rates at urban and airport hotels have been horribly low and well below the national average.

In addition, compared to 2021, the number of positions is expected to slightly increase in 2022; nonetheless, there will be 184,092 fewer direct hotel employees overall in 2022 than in 2019. The State of the Hotel Industry 2021 research by AHLA supports this. Moreover, it is unlikely that employment levels in the sector would resemble those of 2019 until at least 2023.

Top-down and bottom-up approaches were used to estimate and validate the size of the U.S. Hotels, Resorts, and Cruise Lines Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

U.S. Hotels, Resorts, and Cruise Lines Market Segmental Analysis

The U.S. Hotels, Resorts, and Cruise Lines Market is segmented based on type, and region. Based on type the market is segmented into Hotels, Resorts, and Cruise. With respect to categorization by region, the U.S. Hotels, Resorts, and Cruise Lines Market is segmented into Northeast, Midwest, South, West and Southwest.

Drivers of the U.S. Hotels, Resorts, and Cruise Lines Market

The expanding travel and tourism sector drives the market for hotels, resorts, and cruise lines in the United States. The demand for hotels, resorts, and cruise lines rises as more people travel for business and pleasure.

Restraints in the U.S. Hotels, Resorts, and Cruise Lines Market

The industry's income and profitability can fluctuate due to its strong reliance on seasonal demand. Hotels, resorts, and cruise companies can find it difficult to draw guests and stay profitable during off-peak times.

Market Trends of the U.S. Hotels, Resorts, and Cruise Lines Market

Growing emphasis on sustainability: The hotel and resort industries have demonstrated a growing interest in sustainable practices in recent years, as evidenced by the numerous eco-friendly projects they have implemented to lessen their environmental impact.

Customization and personalization: As customers look for more individualized travel experiences, hotels and resorts are beginning to provide more specialized services and amenities.

Technology integration: To improve the visitor experience and expedite operations, the sector is quickly implementing new technologies like chatbots, keyless room entrance, and smartphone check-in.

Emergence of substitute lodging: Due to the widespread use of vacation rental websites like Airbnb, hotels and resorts are increasingly providing substitute lodging options like vacation houses and villas.

Health and wellbeing: Spa services, exercise centers, and nutritious food options are just a few of the amenities that many hotels and resorts are beginning to provide as the trend toward health and wellness gains traction in the business.

Travel with multiple generations: Families that travel with their parents, grandparents, and kids are increasingly becoming more and more common. The creation of hotels and resorts that meet the needs of various age groups is a result of this trend.