Hospitality Industry in the United States - Growth, Trends, and Forecasts (2020 - 2025)
The hospitality industry in the United States has been growing, with the rising number of international travelers visiting the country for leisure trips and with the rising business travel within the country. The total value of bookings increased from USD 116 billion in 2009 to USD 185 billion in 2017. The international arrivals in the country increased by 0.7% in 2017. Cities, like New York, managed to record high numbers of both leisure travelers and business travellers. Growth in digital innovation helped in recording this increasing number and it also helped the players who operate shared spaces, like Airbnb, to be able to reach out to their target audience. The total expenditure of international travellers recorded an all-time high value of USD 251 billion in 2017. Gross hotel bookings recorded a value of USD 185 billion in 2017, which was USD 116 billion in 2009. All these growing numbers, together, inspired the Department of Commerce to target 95.5 million international visitor arrivals, annually, by 2023, which is twice the number it recorded in 2000.
Key Market Trends
The Y-o-Y Growth in Revenue is Driving the Market
The hospitality industry in the United States always managed to score a growing number, over the past few years. Though the occupancy rates fluctuate from month to month, the overall revenue generated from the segment keeps increasing. The region recorded USD 280 billion in terms of the revenue generated in 2018, which was almost double the revenue it generated in the early 2000s. Since 2000, the region recorded positive growth in revenue, which dropped to USD 133 billion in 2009, due to the global recession, from USD 152 billion in 2008.
Airbnb has Changed the Face of the Hospitality Industry in the United States
When it entered the hospitality industry in the United States in 2008, Airbnb was barely known to the general public. Yet, with its innovative space sharing idea and digitalization technique, it attracted the younger generation and reached a break-even point after a year from its inception. Currently, more than 60% of the accounts in Airbnb belong to millennials. It succeeded in attracting a greater number of customers, through its pricing strategy. Airbnb is offering shared spaces at fairly cheaper rates in the leading cities of the United States and the United Kingdom. There are spaces available for USD 14 per night, even in the prime cities of the world. According to recent statistics, Airbnb has approximately 150 million users and covers more than 65,000 cities in the world, with more than 5 million listings.
The hospitality industry in the United States is dynamic. The region hosts a high number of brands with global footprints. Airbnb has been attracting a large consumer base and it recorded an increasing number of listings and bookings over the past few years. The entry of the concept of shared space has been giving a tough competition to the major players, over the past 3 to 4 years.
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