Friday, May 31, 2024 Allied Market Research paints a rosy picture for the travel accommodation industry, predicting a surge in market size to a staggering $3.14 trillion by 2035. This translates to a compound annual growth rate (CAGR) of 12.
1% from 2024 to 2035, signifying a significant expansion in the travel lodging landscape. Experiences Take Center Stage The report identifies a fundamental shift in consumer behavior as a key driver of this growth. Travelers are increasingly prioritizing experiences over material possessions, seeking unique and immersive stays that go beyond just a place to sleep.
This trend is fueling demand for accommodation providers that offer more than basic amenities. Hotels are revamping their offerings to cater to this evolving preference, introducing curated experiences and activities that allow guests to connect with the local culture and create lasting memories. Leisure Travel Leads the Charge Leisure travel is the undisputed champion in propelling the market forward.
Rising disposable incomes and a growing desire for exploration and vacations are fueling this segment. The experience economy, particularly popular among millennials and younger generations, further ignites the demand for leisure travel experiences. Accommodation Landscape: A Diverse Playing Field While hotels retain the largest market share, with established brands, loyalty programs, and a variety of room types to suit different budgets, the report highlights the rise of the econo.