Welcome to the ever-evolving world of hospitality! In 2023, the hotel industry is buzzing with intriguing statistics that unveil the tale of its past, present, and future.
It’s a journey from a multi-trillion-dollar zenith in 2019 to the challenges and comebacks of the COVID-19 era.
Join us as we take a breezy stroll through these 19 hotel industry statistics, revealing the captivating trends that shape the places we stay and the adventures we seek.
Dive into the traveler’s mindset! Discover how millennials prioritize experiences over possessions, and why high-quality photos play a pivotal role in their booking decisions.
Millennials Favor Experiences over Possessions
Nearly 78% of millennials have clearly preferred spending their hard-earned cash on experiences rather than material possessions. It’s a reflection of their desire to make memories that last a lifetime.
In fact, 77% of these millennials believe that some of their most cherished memories were created at events, and 79% claim that attending live events brings them closer to their loved ones.
A 15% boost in booking conversion rates is something that hotels with a knack for showcasing their spaces through high-quality photos on their websites enjoy. In contrast, hotels opting for scarce or low-quality images are missing out.
It’s all about helping travelers get a clear picture of what they’re getting into and allowing them to daydream about their stay.
TripAdvisor’s Photo Impact
According to TripAdvisor, the number of photos a hotel shares on its profile makes a world of difference. It’s the magic wand that can boost traveler engagement.
Hotels that post at least one photo see a whopping 138% spike in engagement and are 225% more likely to receive booking inquiries.
But if they go above and beyond with over 100 photos, the engagement skyrockets by 151%, and they become 283% more likely to get booking inquiries.
Other Engagement Factors
While photos lead the charge, the total number of reviews still holds a strong second place in terms of traveler engagement. It’s closely followed by management responses posted in the past year and the number of reviews posted in the previous year.
Europe Tops the Occupancy Charts
In 2019, Europe showcased its prowess in the hotel occupancy game, boasting the highest rate of any region globally.
With an impressive 72.2% occupancy rate, European hotels prove that they’re the place to be. In the same year, Asia Pacific held a solid occupancy rate of 69.3%, the Americas followed at 65.6%, and the Middle East and Africa combined for a rate of 64.3%.
Let’s explore the numbers stateside! From the sheer volume of hotels to their economic impact, get ready for a glimpse into the heart of the US hotel industry.
Thriving in Numbers
The United States boasts a whopping 90,562 hotel and motel businesses, showing a modest 0.4% increase from the previous year. This growth aligns with the industry’s consistent 0.4% average annual growth rate from 2017 to 2022.
Room for Everyone
Across the country, there’s a total of approximately 5.29 million hotel rooms. Among them, 15.4% fall into the upscale segment, promising a touch of luxury, while 21.4% are comfortably nestled in the upper midscale segment.
The US hotel and motel industry is a significant player in the economy, clocking in at a staggering $177.6 billion.
The industry is recovering from the COVID-19 pandemic and is predicted to grow by an impressive 33.6% throughout 2022. This upswing is a welcome change after an average annual decline of 2.4% from 2017 to 2022.
Tourism’s Rollercoaster Ride
In 2020, the US tourism industry faced a steep drop, being valued at $545.11 billion, mainly due to pandemic-related travel cancellations.
However, a resurgence is on the horizon. The industry was projected to reach $772.48 billion in 2021, rebounding from the downturn. In 2019, it stood at a substantial $1.2 trillion.
U.S. hotels faced a challenge in 2020 with an average occupancy rate of 44%. This means that, on average, 44% of hotel rooms were occupied throughout the year. The pandemic caused a sharp 33.3% drop compared to the occupancy rate in 2019.
It’s not just about the guests. Uncover the behind-the-scenes magic that fuels the hospitality world, with insights on employment figures, wages, and benefits for those who make your stay memorable.
The U.S. accommodation industry is a significant employer, with approximately 1.6 million people working in this sector.
However, the industry faces a higher unemployment rate, standing at 8%, which is twice as high as the national unemployment rate of 4%.
Job Gains and Losses
In the first quarter of 2019, the U.S. leisure and hospitality sector saw 1.352 million gross job gains.
The following quarters leading up to Q2 2021 showed fluctuations in job gains and losses, with Q2 2021 recording 1.725 million gross job gains. Conversely, in Q1 2019, there were 1.22 million gross job losses in this industry.
Here’s the table summarizing the gross job gains and losses for the U.S. leisure and hospitality industry from Q1 2019 through Q2 2021:
|Quarter and Year||Gross Job Gains||Gross Job Losses|
|Q2 2021||1.725 million||984,000|
|Q1 2021||1.723 million||983,000|
|Q4 2020||1.447 million||1.329 million|
|Q3 2020||2.535 million||1.024 million|
|Q2 2020||656,000||6.331 million|
|Q1 2020||1.124 million||–|
|Q4 2019||1.406 million||1.22 million|
|Q3 2019||1.336 million||1.405 million|
|Q2 2019||1.353 million||1.404 million|
|Q1 2019||1.352 million||1.22 million|
On average, employees in the U.S. leisure and hospitality industry earn $19.44 per hour. They work an average of 25.8 hours per week.
Around 32% of employees in this sector have access to employer-sponsored health care, while 43% enjoy paid vacation provided by their employers, and 50% receive paid sick leave.
It’s important to note that these statistics only apply to private industry employees, not government organizations.
What’s next for the ever-evolving world of hotels? Join us as we journey through industry milestones, pandemic impacts, and projections, providing a sneak peek into the exciting future of hospitality.
In 2019, the global hotels and resorts market reached a remarkable value of over $1.5 trillion. This was the culmination of seven years of almost continuous growth.
To put it into perspective, back in 2012, the global hotels and resorts market was valued at around $9 million, and it consistently lingered just under the $1 trillion mark.
The industry finally broke that barrier in 2016 and continued its upward trajectory, reaching the impressive $1.5 trillion value in 2019.
Looking ahead, from 2021 to 2025, the global hotel and travel accommodation industry is projected to exhibit a Compound Annual Growth Rate (CAGR) of 7%. This projection is expected to result in a market value of $1.05 trillion by 2025.
In 2020, the global hotel and travel accommodation market was worth $673.02 billion, and it experienced substantial growth to reach $801.9 billion in 2021, reflecting a notable CAGR of 19.1%.
This significant growth was attributed to the initial recovery of the industry following the disruptions caused by the COVID-19 pandemic in 2020.
Global GDP Impact
In 2020, travel and tourism contributed $4.671 trillion to the global GDP. While this remains a substantial amount, it also represents a substantial decrease from the $9.17 trillion contribution in 2019.
The decline can be directly attributed to the significant reduction in global travel due to the COVID-19 lockdowns in 2020.
Expansion of Hotels
Over the decade from 2008 to 2018, the number of hotels worldwide increased by nearly 14,300. In 2018, the total count of hotels reached 184,299.
So there you have it, our whirlwind tour of the hotel industry’s current landscape. From the lofty heights of 2019 to the game-changing comeback after pandemic setbacks, the hotel world remains as dynamic as ever.
In 2023, we’ve explored growth, resilience, and transformation. These statistics are like signposts in the journey of an industry that’s all about making your stay unforgettable, and we can’t wait to see where the road leads next.
Stay tuned for more adventures in the world of hotels!
Frequently Asked Questions
1. What was the global value of the hotel industry in 2019, and how did it evolve before the COVID-19 pandemic?
In 2019, the global hotels and resorts market was worth over $1.5 trillion. This marked the pinnacle of seven years of growth, starting from around $9 million in 2012. It steadily approached the $1 trillion mark in 2016 before reaching $1.5 trillion in 2019.
2. What is the projected growth for the global hotel and travel accommodation industry from 2021 to 2025?
The industry is expected to exhibit a Compound Annual Growth Rate (CAGR) of 7%, projecting a market value of $1.05 trillion by 2025.
3. How did the global hotel and travel accommodation market fare in 2020, especially in light of the COVID-19 pandemic?
In 2020, the market was valued at $673.02 billion, but it saw substantial growth to $801.9 billion in 2021, with a CAGR of 19.1%. This growth was attributed to the initial industry recovery following pandemic-related travel restrictions.
4. How did the COVID-19 pandemic impact the global GDP contribution of the travel and tourism sector?
In 2020, travel and tourism contributed $4.671 trillion to the global GDP. However, this marked a significant decrease from the $9.17 trillion contributed in 2019, mainly due to the pandemic’s extensive lockdowns, which curtailed global travel.
The global hotel industry has experienced dynamic changes in recent years. While statistics up to 2018 revealed significant growth, the latest trends in 2023 can shed light on the industry’s current expansion, diversification, and evolving strategies.