Global Budget Hotels Market to 2022: Market data and insights on global budget hotels industry
As the Global Tourism Landscape is evolving, branded budget hotel chains are offering premium space to provide greater comfort and more design-led facilities to budget travelers. Taking note of the rising demand for comfortable accommodation and personalized options, both new and established branded budget hotel chains have launched more premium budget hotel chains. These branded budget hotel chains are capitalizing on the growing leisure trips trend by positioning themselves as affordable providers of luxurious accommodation, leveraging their already strong value-conscious brand image.
On the same time, Millennial travelers are a lucrative segment because of their spending potential and habits. For millennial travelers, traveling is not just a hobby, but a lifestyle. They are frequent travelers and mostly opt for extended weekend trips of three to four days. This is an opportunity for budget hotels to boost their business as millennial travelers prefer budget accommodation such as vacation rentals, hostels, and motels. It is hard for budget hotels to ignore millennial travelers as they constitute approximately one fifth of international tourists.
The US was top in terms of total revenue in the budget hotel sector in 2017, followed by the UK and France. The total revenue of budget hotels in the US increased by 1.4% from 2016 to 2017, mainly due to an increase in budget hotels’ Average Daily Rate (ADR), which grew by 0.9% in 2017 and reached US$61.20.
Furthermore, an increase in the size of the middle-class population in the Asia-Pacific and European regions is driving the global budget hotel market industry, with a rise in demand for affordable accommodation. Highlighting this is the fact that eight of the top 10 global budget hotel markets are in the Asia-Pacific and European regions. UK is the second-highest revenue generating country after the US. In 2017, post Brexit vote, the UK registered a significant increase (4.1%) in total revenue of budget hotels compared to the previous year due to the weakening of the British pound, which made it an attractive destination for travelers.
Global Budget Hotels Market to 2022, report provides in-depth analysis of the key market trends that are shaping the future of this segment and analysis of the budget hotel market globally. Detailed market insight is provided on regions like The Americas, Asia-Pacific, Middle East & Africa, and Europe. Also, company profiles for budget hotels are provided and how companies can tap into this to better meet their customers' needs.
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