PUBLISHER: The Business Research Company | PRODUCT CODE: 1804971
PUBLISHER: The Business Research Company | PRODUCT CODE: 1804971
The state of hospitality refers to the current conditions and trends within the hospitality industry, aiming to deliver exceptional experiences and services to guests. It focuses on comfort, satisfaction, and creating memorable interactions. The hospitality industry contributes to economic growth, cultural exchange, and customer loyalty through personalized services and innovative practices.
The main areas of hospitality services include accommodation, food and beverage, entertainment and leisure, travel and transportation, luxury and boutique, meeting and event services, and others. Accommodation services involve providing lodging options such as hotels, motels, hostels, and vacation rentals. These services cater to both solo travelers and families and are available through online platforms and traditional channels.
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 decor, 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 state of the hospitality market research report is one of a series of new reports from The Business Research Company that provides state of the hospitality market statistics, including state of the hospitality industry global market size, regional shares, competitors with a state of the hospitality market share, detailed state of the hospitality market segments, market trends and opportunities, and any further data you may need to thrive in the state of the hospitality industry. This state of the hospitality market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The state of the hospitality market size has grown rapidly in recent years. It will grow from $3981.51 billion in 2024 to $4586.51 billion in 2025 at a compound annual growth rate (CAGR) of 15.2%. The growth in the historic period can be attributed to development of infrastructure and transportation, increasing popularity of experiential travel, expansion of international hotel chains, rising middle class in emerging markets, high demand for unique and differentiated experiences.
The state of the hospitality market size is expected to see rapid growth in the next few years. It will grow to " $8132.12 billion in 2029 at a compound annual growth rate (CAGR) of 15.4%. The growth in the forecast period can be attributed to increase in disposable income and spending power, expansion of digital booking platforms, growth of the millennial and gen z traveler segments, recovery from global economic downturns and pandemics, growing importance of health and wellness amenities. Major trends in the forecast period include focus on sustainability and eco-friendly practices, demand for personalization and customization of guest experiences, integration of smart technology and automation, expansion of hotel brands into new and emerging markets, enhanced focus on safety and hygiene standards.
The forecast of 15.4% 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. Trade tensions may broadly impact U.S. hospitality by inflating prices for internet of things room automation and artificial intelligence concierge systems from Israel/Singapore, slowing industry innovation. 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 travel and tourism is expected to drive the expansion of the state of the hospitality market in the future. Travel and tourism encompass the activities of individuals visiting and staying in locations outside their usual environment for leisure, business, or other reasons. This demand stems from a desire for leisure, cultural experiences, adventure, relaxation, and opportunities for business and education. The growth in travel and tourism boosts the hospitality market by increasing the need for accommodation, dining, and related services. This surge in tourism stimulates economic activity by generating jobs and revenue for local businesses and governments. For example, in May 2023, UN Tourism, a specialized agency of the United Nations promoting responsible and accessible tourism, reported significant growth in the sector. International arrivals in Q1 2023 reached 80% of pre-pandemic levels, more than doubling from 2022. Tourism receipts in 2022 totaled USD 1 trillion, a 50% increase from 2021. The Middle East led this recovery, surpassing 2019 arrival levels, while Europe and Africa followed closely, recovering 90% and 88% of pre-pandemic levels, respectively. Thus, the expansion of travel and tourism is propelling the growth of the state of the hospitality market.
Leading companies in the state of the hospitality market are focusing on developing advanced technologies, such as dynamic pricing and revenue management software, to enhance operational efficiency, optimize revenue, and offer personalized guest experiences. Dynamic pricing and revenue management software utilizes algorithms and data analysis to adjust prices in real time based on market conditions, demand, and competition. For example, in February 2023, PriceLabs, a US-based company providing data-driven pricing recommendations for platforms such as Airbnb and Vrbo, launched a Spanish-language version of its dynamic pricing and revenue management software. This new version is designed to improve usability for Spanish-speaking users by offering an intuitive interface and better understanding of the software. It integrates real-time market data and automated rate adjustments, helping hoteliers make informed pricing decisions and improve productivity. The localized software aims to support property managers and hosts in Spanish-speaking countries in maximizing profitability.
In April 2024, Hilton, a US-based global hotel and resort brand, acquired Sydell Group for an undisclosed amount. This acquisition is intended to expand Hilton's portfolio into the luxury lifestyle hotel market by acquiring a majority stake in the NoMad brand. Hilton plans to develop up to 100 NoMad properties globally, leveraging its commercial strength to offer unique, high-end experiences while preserving NoMad's distinctive brand identity and independent property ownership. Sydell Group, based in the US, is known for creating and managing dynamic lifestyle hotel brands.
Major companies operating in the state of the hospitality market are Rosewood Hotel Group Ltd., Marriott International Inc., Four Seasons Hotels Limited, Hilton Worldwide Holdings Inc., Jumeirah International LLC, Hyatt Hotels Corporation, Radisson Hospitality Inc., Accor SA, InterContinental Hotels Group plc (IHG), Kerzner International Holdings Limited, Choice Hotels International Inc., Wyndham Hotels & Resorts Inc., Shangri-La Asia Limited, The Hongkong and Shanghai Hotels Limited, The Ritz-Carlton Hotel Company L.L.C., ONYX Hospitality Group, Belmond Ltd., Mandarin Oriental Hotel Group International Limited, Banyan Tree Holdings Limited, Oberoi Hotels & Resorts, The Indian Hotels Company Limited (Taj Hotels), Langham Hospitality Group Limited, Minor International PCL, Dusit Thani Public Company Limited, Aman Group Sarl
North America was the largest region in the state of the hospitality market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the state of the hospitality market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the state of the hospitality market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The state of the hospitality market includes revenues earned by entities by consulting services, financial advisory, regulatory and compliance support and real estate services. 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.
State Of The Hospitality Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on state of the hospitality market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for state of the hospitality ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The state of the hospitality market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.