Hotels Market Intelligence

Hotels Market Description

The global hotel industry is growing at a CAGR of 4.6 percent and the industry is witnessing a number of Mergers and Acquisitions (M&A) that are affecting the growth rate positively. Notably in the LATAM region, capacity is expected to be added till 2025 which will show a 57 percent increase in supply as well. European markets is witnessing a strong growth whereas the other regions are trying to cope up with inflation. Some of the big global players that are steadily consolidating the industry include Marriot, Starwood, Hilton, Accor, Windham, IHG, and Carlson. In almost every region, the industry is growing rapidly due to certain factors such as local economic growth and cost and pricing factors.

The report provides detailed insights on various growth drivers, regional factors, regional trends, economic factors, and future opportunities. Some innovations in the field such as new service offerings, cloud computing services, and innovations in high and mid-scale segments are discussed. The report also focuses on the information related to the programs of large global companies, their challenges, contract elements, KPIs, and preferred and non-preferred hotels. In addition, the report also analyzes preferred sourcing and engagement models, pricing models, negotiation strategies, cost-saving opportunities/methodology, and contracting elements.

Report Coverage

Preferred Sourcing Model: Hotels
Hotel Programs of Large Global Companies
Preferred Pricing Model: Hotels
Cost-saving Opportunities: Hotels
KPIs: Hotels

Hotels Market Trend, Analysis & Forecast

Category Intelligence on Hotels covers the following

Information relating to market, supply, cost, and pricing analysis
Hard to find data on cost and TCO models, supplier details, and performance benchmarks
Macroeconomic and regional trends impacting cost, supply, and other market dynamics
Category-specific negotiation and sourcing advice

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Executive Summary

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Market Analysis

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Supply Analysis

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Cost & Pricing Analysis

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Best Practices

1. Hotels Executive Summary

1.1 Executive Summary

2. Hotels Market Overview

2.1 Market Size, Growth and Outlook
2.2 Key Trends in the Global Hotel Industry
2.3 Price Forecast – Hotels

3. Hotels Best Practices

3.1 Preferred Sourcing and Engagement Model
3.2 Preferred Pricing Model
3.3 Negotiation Strategies/Cost-saving Opportunities
3.4 Cost-saving Methodology
3.5 Contracting Elements and KPIs/SLAs

4. Hotels Supplier Market Analysis

4.1 List of Top Global Hotels

Global Market Outlook on Hotels

The global hotel industry is witnessing a lot of mergers and acquisitions. Sharing economy properties are also competing against many hotel properties across the world.

The global hotel industry is growing at a CAGR of 4.6 percent, and the 2016 revenue was estimated to be $550 billion.

Growth Rates

2010–2011 witnessed the highest growth (9.1 percent) between 2010 and 2015, driven by a 7.4 percent growth in the average daily rates
2012–2013 registered the lowest growth rate (2.1 percent), mainly due to low volume (ADR remained flat Y-o-Y)

Growth Drivers

The business travel segment is growing; increased role of internet and technology in making hotel bookings easier (e.g., mobile check-in/check-out)
Expanding business in emerging market leads to increased growth in business travel and demand for hotels

Constraints

Supply shortage in emerging markets, alternatives to travel, like virtual meetings, are reducing travel and hence, the need for hotel bookings

Price Forecast: Hotels (2018)

Globally, a 3.7 percent average increase in hotel prices is expected in 2018 compared to 2.5 percent in 2017. Europe is expected to record a strong increase, while other regions are coping up with inflation. The impact of the 2017 mergers is expected to be felt during the 2018 RFP season.

Pricing Trends

North America

As demand has levelled off since 2016, North American hoteliers may be banking on economic growth, but supply is expected to continue growing steadily through 2018

LATAM

Capacity is being added throughout the region between 2016 and 2025, which projects a 57 increase increase in supply
Spend reduction is also a priority

Europe

Hoteliers in Eastern Europe are optimistic, as 2017 statistics reflects occupancy picking up
No measurable impact is expected from Brexit until 2019 in the UK
RevPAR growth is expected for major cities in Europe

MEA

In the MEA, Saudi Arabia is leading in construction of rooms, followed by Saudi Arabia, Qatar and Egypt

APAC

Hotel prices are expected to rise with huge discrepancies
Strong economies are driving the demand
Buyers should be equipped to manage challenging negotiations with newly merged hotel groups

Regional Trends: Hotels

Suppliers are progressively moving corporate buyers away from fixed, negotiated hotel rates and toward dynamic rate pricing. There is also a global trend toward “smarter” hotels with advanced technologies.

North America

Market : It is a seller’s market for North American hotels, with rates up around 5–6 percent in 2016
Growth : Demand is steady, but there is little new supply, outside mid-scale brands, like Hampton Inn and Courtyard
Opportunity : There is a scope for more consolidation in the industry
Alternatives : Serviced apartments and extended-stay properties, both of which include kitchen facilities, are gaining renewed interest as a compromise between hotels and Airbnb-style private accommodation offerings

LATAM

Need for developed infrastructure : In spite of current challenges, LATAM still needs more high-end properties to meet the region’s underlying demand. Local chains still provide most of the supply
New openings : Recent new openings in countries, like Peru, Chile, Mexico and Panama, have been confined largely to mid-scale properties
Upgradation : Existing hotels are upgrading their facilities, offering improved business centres and Wi-Fi
Influx of new hotels : Major cities have experienced supply of new hotels, but due to economic uncertainties, the hotel market remains undersupplied in most cases

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