Allied Market Research has reported that the global travel accommodation industry garnered USD 632.8 billion in 2018 and is estimated to reach USD 893bn by 2026.
Rise in global tourism, developments in the corporate travel industry, and the surge in the inclination among consumers to shift from product to experience drive the growth of the global travel accommodation market.
On the other hand, an increase in the incidence of forgery and fluctuating fortunes for destinations restrain the growth to some extent. However, innovation through artificial intelligence and eco-friendly accommodations for solo travellers are expected to create lucrative opportunities in the near future.
The hotel segment to lead the trail by 2026
Based on type, the hotel segment contributed to around three-fifths of the global tourist accommodation market revenue in 2018 and is expected to retain its dominance during 2019–2026.
The fact that hotels provide short-term paid accommodation, meals, and other facilities according to the exact needs of travellers and tourists has propelled the growth of the segment. The vacation rental segment, on the other hand, is projected to grow at the fastest CAGR of 6.7% throughout the estimated period.
Increase in the drift toward renting large homes enables to lower the cost of accommodation which is appealing to budget-cost travellers. Also, the booming tourism business in emerging markets has fueled the growth.