San Francisco, 01 November 2023: The Report Alternative Accommodation Market Size, Share & Trends Analysis Report By Accommodation Type (Home, Apartments/Condominium), By Booking Mode, By Region, And Segment Forecasts, 2022 - 2030

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.

The global market is mainly driven by the constantly evolving international tourism sector, consumer inclination toward cheap and comfortable vacation stays such as apartments, homestays, and cottages, and rising spending on leisure and business travel. Given the rise of online travel booking agencies and the growth of the hotel industry across the globe, alternative accommodations are likely to bring continued disruption to the hotel industry. Additionally, key players operating in the industry are constantly focusing on several business tactics to attract customers and offer better services. This has offered key players an opportunity to expand their global outreach, further bolstering the growth of the global industry.

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The industry witnessed a negative downturn due to the COVID-19 pandemic and key players witnessed a negative financial downturn and low occupancy rates. The widespread containment and mitigation measures to stop the virus's spread have harmed travel and tourism. However, with the improved mitigation and contingency plans, governments across the globe have been able to counter the adverse effects caused by the outbreak. With governments across the globe lifting their pandemic travel ban and opening doors for international travelers, the holiday season was filled with travelers across the globe reconnecting with loved ones and looking for adventurous activities. Prevalent during the height of the pandemic, alternative accommodations are expected to continue to encroach on traditional hotels and gain a dominant position. Over the forecast period, the industry is expected to witness strong growth owing to numerous domestic leisure travelers, government initiatives to promote the regional travel and tourism industry, and the increased focus of key players on extensive business strategies.

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

Alternative lodgings may generate new revenue for hotel chains, enabling them to draw in millennials looking for original, one-of-a-kind, and highly personalized vacation experiences. Additionally, it offers them a financially appealing investment model owing to reduced overhead expenses and better profitability than a hotel, which will also aid in the overall development and growth of the economy. Key companies with excellent investment and execution plans, supported by access to a variety of vacation rental spaces, are projected to offer new business possibilities, support the expansion of the local economy, and provide employment, particularly in underserved leisure areas. Additionally, the industry is expected to undergo huge technological advancements, and over the forecast period, technology will be imperative to carve out a competitive edge while offering an efficient and best guest experience.

Alternative Accommodation Market Report Scope

Report Attribute

Details

Market size value in 2022

USD 147.31 billion

Revenue forecast in 2030

USD 504.95 billion

Growth rate

CAGR of 16.5% from 2022 to 2030

Base year for estimation

2021

Historical data

2017 - 2020

Forecast period

2022 - 2030

Realizing that alternative accommodation is not a passing trend but is here to stay, hotel companies are entering the global market and diversifying their portfolio. Following COVID-19, companies are witnessing an evolution in consumer preference as many travelers have the flexibility to work or live from anywhere irrespective of the places and they are choosing short-term rentals to accommodate for larger group travel and longer stays. This consumer shift is expected to contribute to market growth and present a plethora of opportunities for market players to list more properties on their websites and attract new customers. Additionally, rising investments in travel and tourism and digital infrastructure are expected to emerge as one of the prominent factors contributing to the growth. However, rising geopolitical tensions between the countries, increased waste, pollution, and emissions, coupled with constantly evolving consumer expectations regarding the accommodation, are expected to be some of the major challenges faced by key market players.

List of Key Players of Alternative Accommodation Market

  • holidu.co.uk
  • Trivago
  • Airbnb, Inc.
  • Booking.com
  • VRBO (Expedia Group)
  • MakeMyTrip Limited
  • Wyndham Destinations Inc.
  • HomeToGo
  • Peakah
  • Trip.com Group Limited
  • TripAdvisor, Inc.

 

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