Hotel Booking Market Size, Share, Growth, and Industry Analysis, By Type (Online, Offline), By Application (Commercial, Individual) and Regional Forecast to 2032

Updated On: 02 September 2024

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HOTEL BOOKING MARKET REPORT OVERVIEW

The global Hotel Booking market size expanded rapidly in 2024 and the market is projected to grow substantially by 2032, exhibiting a prodigious CAGR during the forecast period.

The growth in the Hotel Booking market is continuing across the globe due to several factors: In this case with the advancement in the global economy and technology, the functionality of Hotel Booking products also increases. Along with that increased size of the customer base that is developing the realization of the need for Hotel Booking across all the sectors makes up for the growth of this sector. Again, governments’ advocacy for sustainable business and care of the environment, also contribute to the creation of demand for Hotel Booking solutions. The construction industry together with the automotive and electronics industry use the Hotel Booking products most.

Further and along with the continued and increasing research and developmental activities, the market is expected to be further driven hence continued growth. Taking into account the idea that companies are expecting a shift in customer behavior and the always-shifting legal environment in the business realm, the Hotel Booking market has great potential in the future.

COVID-19 Impact: Market Growth Restrained by Pandemic due to Supply Chain Disruptions

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

COVID-19 led to many record-low bookings, such a terrible year for annual accommodation bookings globally in the year 2020. This has led to hotel shutdowns and empty units for Airbnb listings and bookings. Business in turn has deteriorated to such an extent that hotel industries have fired or forced their workers to go on unpaid leave like never before, and Airbnb property owners are struggling with ad hoc costs and mortgage of the properties. Further, almost all of the international hotel chains have hybrid structures, and most of the ones that used to pay dividends have stopped doing so, and capital investment has been postponed to avoid insolvency and the complete degradation of the industry.

LATEST TRENDS

"Hotels are increasingly leveraging AI to Drive Market Growth"

Customer service has been taken as one of the key areas of hotels’ application of AI, and this has helped boost the hotel booking industry. AI technology makes it easy to respond shortly and individually to the inquiries of guests increases the speed of bookings and enhances clients’ satisfaction. Customers receive relevant recommendations, while hotels adjust their prices of the service and room, thus increasing revenues. Also, preferences that guests have, check-ins, and standard tasks concerning the hotel requirements are met while the personnel shifts attention to more complicated activities. This smooth incorporation of artificial intelligence in the supply side of customer service is one of the ways through which it enhances the guest experience while at the same time enhancing productivity and pushing the rate of growth of the hotel booking market up.

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HOTEL BOOKING MARKET SEGMENTATION

By Type

Based on type the global market can be categorized into Online & Offline.

• On-line: The online segment holds the largest share of the global hotel booking market due to favorability in digital channels such as mobile applications and websites. Prices can be compared, reviews read and reservations made in an instant making it ideal for leisure and business travelers.

• Offline: However, the offline segment is still strong, especially for people who have not adapted to new technologies and in countries/ regions which have not adapted to internet-based technologies yet. There are classic forms of booking by phone and direct appointment to travel agents and still present in the market although are not primary due to the internet.

By Application

Based on application the global market can be categorized into Commercial & Individual.

• Commercial: In the commercial segment, bookings of hotels are booked by companies on behalf of their organizations, conferences, and occasions. This segment is usually very particular about the services they want from a hotel, including provisions to change their bookings, membership programs and others; this segment is a crucial source of income for hotels.

• Individual: Individual segment is business and leisure travelers, tourists, or anyone who books a hotel for personal purposes, fun or relaxation. This segment is price sensitive and seeks individualized attention and the opportunity to book their hotels online as well as the traditional way making the hotel booking market more diverse.

DRIVING FACTORS

"Advancement in Technology Boost the Market"

One of the key driving factors in the global Hotel Booking market growth is the advancement in technology. Technology has become a huge force that has caused a shift in how hotel booking is done by simplifying aspects and improving clients’ feelings. App-based booking interfaces, websites, and algorithm-driven chatbots have led to access, comparison and booking of accommodations on the go. Big data and machine learning facilitate recommendations that are smart and individual, besides adjusting prices to fit the market, and therefore enhance customer satisfaction as well as hotels’ revenues. In addition, the use of virtual reality (VR) tours and advanced options in the payment increases convenience as well as credibility. The above innovations have not only boosted the efficiency but also the market frontiers making hotel bookings available to a broader market across the globe.

"Regulatory Support Expand the Market"

In the hotel booking market, governance is useful since it offers the support structures that are so much needed so that the market will not experience several shocks that make it to be so unstable for the people in the market. They also serve the role of measuring stick on the part of the government to urge for fair competition policies by protecting the consumers and providing for means by which the correct pricing of commodities may be facilitated thereby making the population have confidence in the online booking platforms. Apart from that measures that keep business going such as license simplification and data protection acts are incentives to the growth and development of the sector. Besides, the presence of such an environment also serves not only to enhance the consumers’ confidence and attract new participants to the market which results in market competition, improvement of some offered services or market development.

RESTRAINING FACTORS

"Infrastructure Limitations Potentially Impede Market Growth"

Restraints in the infrastructure also directly limit the global hotel booking market because of the inconvenience of travelling to make bookings. The conscience of a hotel to get and contain its guests is however compromised by insufficient infrastructure in transport and telecommunication and inadequately developed other infrastructures especially those in the rural areas. Therefore, they suffered some losses concerning the booking process and the accommodation of their guest – their customers were dissatisfied- thus, the booking rates were reduced. Further, it suggests that inadequate physical facilities can chase investors away from the hospitality industry thereby affecting market growth and entry into new markets in the process. Hence, this paper establishes that indices of infrastructure development influence the performance and returns of the international hotel booking business sector.

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HOTEL BOOKING MARKET REGIONAL INSIGHTS

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

"North America Region Dominating the Market due to its large and mature tourism industry"

North America has emerged as the most dominant region in the global Hotel Booking market share due to several factors. North America dominates this hotel booking industry with widespread tourism and a stable tourism industry, higher personal spending and developed online options. Possessing the centers of tourists’ interest like the cities and natural sights the region possesses rather stable tourist visits both – foreign and internal. Besides, the increase in the new entrant OTAs and well-entrenched hotel chains in the U. S. /Canada also fuels the bookings. North America has got stable economy and a population that embraces innovation in bookings and therefore makes the region the most dominant in hotel bookings.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Innovation and Market Expansion"

The Hotel Booking market is significantly influenced by key industry players that play a pivotal role in driving market dynamics and shaping consumer preferences. These key players in the global hotel booking market are controlling the market through acquisitions, incorporation of technology, and good customer relations. When creating the booking platforms, the firms bear in mind AI and data analytics when enhancing the platforms and improving the algorithms of the suggestions to meet the needs of the customers better. Also to meet the needs of a diverse sector of guests, existences are expanding a selection of properties that can be from affordable to luxury. These two have a monopolistic share of the market and they both perpetually push the competition forward while presenting a standard of what online hotel booking services in the global market should be like.

List of Market Players Profiled

• Booking (United States)
• Expedia (United States)
• Priceline (United States)
• Trip (China)
• IHG (England)
• Marriott International (United States)
• Hilton Worldwide (United States)
• AccorHotels (France)

INDUSTRIAL DEVELOPMENT

May 2022: Expedia Group Open World is a new technology platform introduced by Expertise Group for providing excellent traveler experiences, creating traveler-focused technology that provides the appropriate information for booking confidence, and enhancing the travel ecosystem.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.