10 min read

Hotel Industry Statistics: The Hottest Trends and What They Mean for You in 2025

Carmen Broder

on Nov 22, 2024

QUICK SUMMARY

Uncover the latest hotel industry statistics and trends driving the hospitality sector. Learn how data influences decision-making, boosts growth, and prepares hoteliers for a competitive market.

Keeping up with hospitality industry statistics is like having a compass for your hotel business. These stats show you trends, guest preferences, and how other hotels are performing.

By staying updated, you can make smarter decisions—like adjusting rates during peak seasons, offering services your guests actually want, or spotting areas where you're losing money. Simply put, knowing the numbers helps you stay competitive, attract more guests, and grow your business. It's not just about numbers; it's about using them to run a successful hotel.

That being said, here are some important hospitality industry statistics and what I think you should take away from them to bolster your own practice:

Global Market Overview

The global hospitality industry is projected to grow from $4.1 trillion in 2022 to $9.95 trillion by 2028, with a compound annual growth rate (CAGR) of 16.13% between 2023 and 2028. (Passport Photo Online)
In 2023, the hotel and resort industry market size worldwide reached $1.5 trillion, showing an increase over the previous year. (Statista)
Travel and tourism accounted for 7.6% of the global gross domestic product (GDP) in 2022. (Cloudbeds)
Over 2 billion people are expected to travel yearly by 2026. (Cloudbeds)
Between 2022 and 2032, travel and tourism's contribution to the global economy is expected to grow at an average annual rate of 5.8%, more than double the 2.7% average annual growth rate estimated for the global economy. (Cloudbeds)
The global luxury hotel market was valued at approximately USD 93.59 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 3.8% from 2023 to 2030. (Grand View Research)
In 2023, the hotel and resort industry market size worldwide reached $1.5 trillion, showing an increase over the previous year. (Statista)
In 2022, the U.S. hotel industry's revenue per available room (RevPAR) reached $93.27, marking an increase over the previous two years, which were impacted by the COVID-19 pandemic. (Statista)

Your Takeaway: The hospitality industry is growing fast, with the global market set to more than double by 2028. More people are traveling, and tourism’s impact on the economy is expected to grow faster than the global average. Hoteliers should focus on capturing this demand by improving guest experiences, targeting luxury and mid-range travelers, and staying competitive in a rapidly expanding market.

Technology and Digitalization

81% of hoteliers surveyed state that technology will be one of the most important factors for hotel business success in the next 5 years. (Hotel Tech Report)
Globally, 91% of hotels use a Property Management System (PMS), 64% have a booking engine, and 33% have a channel manager. (Cloudbeds)
By 2023, it was estimated that 700 million guests would book hotel rooms online, reflecting a significant shift towards digital reservations. (Dream Big Travel Far)
According to Skift, 73% of travelers are likely to return to a property that meets their technological needs. (Cloudbeds)
The global Point of Sale (POS) software market is predicted to reach $19.56 billion by 2028. (Cloudbeds)
In 2022, 69% of total revenue from the international travel and tourism market was booked online, representing approximately $475 billion in revenue. (Cloudbeds)
In 2023, 81% of travelers wanted greater digital customer service from hotel brands. (FinancesOnline)
In October 2024, Booking.com was the most visited travel and tourism website worldwide, with approximately 528 million visits. (Statista)

Your Takeaway: Technology is a key driver of success in the hotel industry, with most properties already relying on tools like PMS and hotel bookings engines. Travelers expect seamless digital experiences, and meeting these expectations boosts loyalty and repeat business. Hoteliers should invest in advanced tech providers and solutions to enhance guest satisfaction and streamline operations, staying competitive in a tech-driven market.

Employment and Workforce

The hospitality industry employs approximately 10% of the global workforce. (FinancesOnline)
In the United States, the hospitality industry is expected to employ 1.8 million workers in 2024. (Cloudbeds)
Between 2021 and 2031, the U.S. economy is projected to add 8.3 million jobs, with leisure and hospitality accounting for 23.1% of them. (ZoomShift)
Employment of lodging managers is projected to grow by 10% from 2023 to 2033, which is much faster than the average for all occupations. This growth is expected to result in about 6,000 job openings annually over the decade. (Bureau of Labor Statistics)
The median annual wage for lodging managers was $65,360 in May 2023. Salaries can vary based on factors such as location, hotel chains, hotel size, and level of experience. (Bureau of Labor Statistic)
Hotel manager salaries can vary significantly by location. For instance, in the United States, hotel managers in Nashville, Tennessee, earn an average of $76,240 per year, while those in New Orleans, Louisiana, earn about $69,156 per year. (Indeed)
As of September 2024, the U.S. unemployment rate decreased for the second consecutive month, indicating a strengthening labor market. (CBRE)
The hospitality industry continues to face staffing shortages, with 72% of restaurants reporting declining sales in Summer 2024, citing high labor costs and too few customers as major challenges. (The NYC Alliance)

Your Takeaway: The hospitality industry is a major employer, contributing to a significant share of global and U.S. job growth. Lodging managers are in high demand, with faster-than-average job growth and competitive salaries that vary by location and experience. Hoteliers should focus on attracting and retaining skilled workers to support industry growth and maintain high-quality operations.

Hotel Industry Specifics

As of 2019, there were over 700,000 hotels and resorts worldwide. (FinancesOnline)
The hotel market comprises over 4 million rooms globally. (FinancesOnline)
In 2023, the average daily rate (ADR) for hotels in the U.S. was $120.01 per night. (FinancesOnline)
In 2024, hotel rates are forecasted to rise in most locations around the world, by as much as 17.5% in some cities. (Cloudbeds)
The global hotel occupancy rate reached 66% in 2023, rebounding to pre-pandemic levels. (Statista)
The Asia-Pacific region is projected to lead tourism growth, with international visitor arrivals expected to reach 564 million by 2026, highlighting the region's resilience and growing potential as a travel destination. (Travel Daily News)
In the year ending June 2024, New York City experienced a significant increase in nightly hotel stays, ranking third among major U.S. markets. Luxury and upper upscale hotels led this surge, each recording increases exceeding 7%, indicating a robust recovery in the city's hospitality sector. (Marcus & Millichap)
In 2023, the global food service industry generated revenues of approximately $3.5 trillion, reflecting a strong recovery from the pandemic's impact. (PATA)
Implementing effective revenue management strategies can lead to a 2-5% increase in a hotel's revenue per available room (RevPAR), highlighting the financial benefits of such practices. (Hospitality Net)
The American Hotel and Lodging Association (AHLA) reported that in 2023, the U.S. hotel industry supported 8.3 million jobs, underscoring its significant role in the national economy. (Lodgistics)

Your Takeaway: The hotel industry is vast, with millions of rooms worldwide and online bookings/occupancy rates back to pre-pandemic levels. Room rates are steadily rising, with significant increases expected in some areas. Hoteliers should focus on maximizing revenue through strategic pricing while maintaining high occupancy and delivering value to guests.

Consumer Behavior

In 2024, 46% of global workers plan to travel for business or bleisure (a blend of business and leisure). (Cloudbeds)
The most popular types of leisure travel in 2024 include visiting family and friends (46%), beach vacations (36%), and road trips (34%). (Cloudbeds)
In 2023, 76% of business travelers planned to extend a work trip for leisure, and 28% planned to take a "flexcation" (a flexible vacation combining work and leisure). (Cloudbeds)
In 2023, 92% of travelers expected to travel at least as much as they did in the prior year, while 40% planned to travel more. (Cloudbeds)
In 2023, 62% of hotels reported increasing their use of virtual reality in training. (Cloudbeds)
Millennials are driving the demand for unique and authentic travel experiences, with 73% seeking such experiences, leading to a rise in boutique hotels and personalized services. (PATA)
In 2023, Airbnb reported a 20% increase in bookings compared to the previous year, reflecting a growing preference for alternative accommodations among travelers. (PATA)

Your Takeaway: Travelers are blending work and leisure more than ever, with "bleisure" trips and flexible vacations becoming key industry trends. Leisure travel remains strong, with many extending business trips for personal enjoyment. Hoteliers should tailor offerings to support these blended travel experiences and attract both business and leisure travelers.

Leading Luxury Hotel Brands

The global luxury hotel market was valued at approximately USD 93.59 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 3.8% from 2023 to 2030. (Grand View Research)
The top luxury hotel brands in 2024 are: Mandarin Oriental, Bulgari, Oetker Collection, Six Senses, Aman, One&Only, Rocco Forte, Rosewood, Belmond, Auberge, Dorchester Collection, Four Seasons, Peninsula, COMO, and Raffles. (Luxury Travel Intelligence)
In 2023, Hilton was the most valuable hotel brand globally, with a brand value of nearly USD 12 billion. (Statista)
Other major hotel brands in the ranking included Hyatt, Hampton Inn, and Holiday Inn, with brand values of USD 6.07 billion, USD 4.26 billion, and USD 3.75 billion, respectively. (Statista)
The United States holds the largest share of the luxury hotel market, accounting for approximately 30%. Europe and China collectively contribute around 35% to the global luxury hotel market. (Luxury Hotel)

Your Takeaway: The luxury hotel market is steadily growing, with the US hotel industry, Europe, and China leading the way. Iconic brands like Mandarin Oriental and Hilton dominate, showing strong global recognition. Hoteliers should focus on maintaining high-quality offerings and leveraging brand value to capture a share of this lucrative market.

Trends in Travel

The global eco-friendly hotel market is projected to grow at a compound annual growth rate (CAGR) of 8.1% from 2021 to 2028, reflecting increasing consumer demand for sustainable lodging options. (Cloudbeds)
In 2023, 81% of travelers wanted greater digital customer service from hotel brands, indicating a strong preference for technology-enhanced experiences. (Cloudbeds)
The bleisure tourism market was estimated to be valued at nearly $594.51 billion in 2023 and is predicted to continue to grow to $731.4 billion by 2032, with a CAGR of 8.9% from 2023 to 2032. (Hospitality Insights)
In 2023, 62% of travelers expressed interest in wellness vacations, highlighting a growing trend toward health and well-being in travel choices. (Cloudbeds)
The global wellness tourism market is projected to reach $1.2 trillion by 2027, growing at a CAGR of 7.2% from 2020 to 2027, indicating a strong consumer interest in health-centric travel experiences. (Cloudbeds)
A survey found that 73% of travelers are seeking unique and authentic experiences, leading to a rise in demand for boutique hotels and personalized services. (Cloudbeds)
In 2023, 61% of consumers were willing to spend more for personalized experiences, emphasizing the importance of tailored offerings in the hospitality sector. (Cloudbeds)

Your Takeaway: Travel trends show strong growth in eco-friendly, wellness, and personalized experiences, driven by consumer demand for sustainability, health, and uniqueness. Bleisure tourism and technology-enhanced services are also reshaping the travel industry, with travelers seeking more flexible and seamless experiences. Hoteliers should focus on offering tailored, sustainable, and health-conscious options to stay competitive and meet evolving guest preferences.

Keep Up with Hospitality Trends

Don't stop here! Hoteliers can keep up with emerging hospitality trends by:

Engaging with case studies and research reports on hospitality innovations.
Reading hotel management books and publications.
Listening to hospitality-related podcasts.
Taking online courses on hospitality management and innovation.
Joining hospitality industry communities or professional associations.
Subscribing to newsletters focused on the hospitality market.
Attending hospitality industry conferences and trade shows.
Engaging in networking events to connect with peers.
Following thought leaders and industry influencers on social media.
Participating in webinars or virtual events about hospitality topics.
Monitoring competitor strategies and market shifts.
Leveraging analytics tools to track customer preferences and trends.
Collaborating with local businesses and organizations for insights.
Staying updated on technological advancements in the industry.
Conducting regular customer surveys to identify emerging needs.

What Next?

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