Alternative Accommodation Market Growth & Trends
The global alternative accommodation market size is expected to reach USD 504.95 billion by 2030 and is expected to expand at a CAGR of 16.5% from 2022 to 2030, according to a new report by Grand View Research, Inc. The constantly changing international tourism industry, consumer preferences for affordable and comfortable vacation accommodations such as apartments, home staycations, and services apartments, and rising spending on leisure and business travel are the main factors driving the market. Global alternative accommodations are anticipated to continue to disrupt the hotel sector given the expansion of online travel agencies and the hotel business globally.
The market for alternative accommodation has been steadily expanding, with the U.S. and Europe taking the major share of the market on account of the expanding travel and tourist industry. The rapid development of communication and transportation technologies, the expansion of the right to travel, and changes in the distribution of income throughout the world are all contributing to the exponential growth of the global tourist business, and thus contributing to the global hospitality industry. Diversifying submarkets such as alternative accommodation that meet the many conceptions of lodging and vacation are emerging in the expanding tourist business as a result of the expanding consumer expectations.
The online booking mode captured the largest revenue share in 2021. Due to the advancements in technology, the online travel industry has seen a number of changes recently. The rapid growth of mobile application use and the rise in internet usage have altered and streamlined the hotel booking process through online channels. Additionally, in recent years, customers have begun using online booking platforms owing to their advantages, which include simple booking and payment processes, safer payment options, and simple and cost-free cancellation. This has further elevated the market growth in recent years.
North America dominated the global market in 2021. This is mainly driven by the region’s growing glamping trend and rising costs of lodging in hotels and apartments. Additionally, the industry has grown rapidly as a result of rising tourism activities in North America owing to the region’s extremely well-liked tourist spots and subsequent construction of technologically cutting-edge infrastructure.
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Alternative Accommodation Market Report
Alternative Accommodation Market Report Highlights
- Asia Pacific is expected to register the highest CAGR of 17.6% from 2022 to 2030 mainly owing to rising consumer expenditure on accommodation and traveling. Government initiatives to promote regional travel and tourism are expected to have a profound impact on the global market
- The apartments/condominium accommodation type segment is projected to register the highest CAGR of 17.7% from 2022 to 2030 due to ease, comfort, and luxury amenities and services it offers. Additionally, rising spending on travel and tourism by youth and millennials is expected to drive them to stay in luxurious places such as apartments/condominiums
- The offline booking mode is expected to grow on account of its increased use among Gen X and baby boomers. Additionally, elder travelers from developing countries are still preferring offline booking channels, thus contributing to the growth of the segment
