Alternative Accommodation Industry Overview
The global Alternative Accommodation Market was valued at $127.28 billion in 2021 and is projected to grow at an annual rate of 16.5% from 2022 to 2030. The continuous evolution of international tourism, coupled with a growing consumer preference for affordable and convenient vacation stays like apartments, homestays, and cottages, alongside increasing expenditure on both leisure and business travel, are the primary drivers of this global market.
With the rise of online travel booking platforms and the expansion of the hotel industry worldwide, alternative accommodations are poised to continue disrupting traditional hotel offerings. Moreover, major players in this sector are consistently employing various business strategies to attract customers and enhance their services. This focus provides key players with opportunities to broaden their global presence, further fueling the expansion of the worldwide industry.
Detailed Segmentation:
- Accommodation Type Insights
The apartments/condominium segment is projected to register the highest CAGR of 17.7% from 2022 to 2030. Millennials and business travelers across the globe are opting to stay in apartments or condominiums buildings due to the luxury amenities it offers such as clubhouses, sports clubs, and swimming pools. Additionally, according to Real Estate Trade Association, staycation activities have increased drastically in the condominium segment mainly driven by their affordable price point. Thus, rising disposable income, travel and tourism spending across the globe, and ease of comfort offered by apartments/condominium rental are expected to drive the segment over the forecast period.
- Booking Mode Insights
In terms of revenue, the online booking mode captured the largest share of over 85.0% in 2021. The online travel sector has seen various changes in recent years as a result of technological improvements. The fast expansion of mobile application usage and the increasing use of the internet have shaped the hotel booking process through online channels, making it quicker and simpler. Booking Holdings, Expedia, Airbnb, and other online travel agencies are significant participants in the industry and they offer services including discounts, information exchange, and transactions that are advantageous to both service providers and hotel guests. Additionally, in recent times, consumers have started opting for online booking platforms due to their features such as easy payments, easy bookings, safer payment modes, and easy and free cancelation. This has further elevated the demand for online booking channels.
- Regional Insights
Asia Pacific is expected to register the highest CAGR of 17.6% from 2022 to 2030. The growth is primarily attributed to rising consumer expenditure on staycations and traveling. The growing dependency of several economies across the region on the hotel and accommodation industry and rising government investments in the development of sophisticated infrastructure to attract new tourists are expected to make constructive addition to the market growth. In addition, governments in countries like India, Indonesia, China, Vietnam, Australia, and Thailand are putting constant efforts into growing the tourist industry to promote the region's overall growth through tourism and produce income and jobs. The demand is also being fueled by tourists becoming more aware of the availability of holiday rentals. Asia Pacific is thus expected to witness strong growth in the years to come.
Gather more insights about the market drivers, restraints, and growth of the Alternative Accommodation Market
Key Companies & Market Share Insights
The global market is characterized by the presence of small and large-scale companies thriving in the competition and diversifying their service offerings to maintain their dominance.
- In April 2021, Trivago, one of the prominent players, launched trivago Weekend to enable consumers from the U.S. and the U.K. to discover weekend getaways near their homes. Trivago Weekend will help travelers to find explicit deals on accommodation and introduce them to staycations near to their homes
- In November 2021, Airbnb partnered with The International Olympic Committee (IOC) to support the Olympic Movement through to 2028. With this partnership, Airbnb aims to provide accommodations to help reduce costs for Olympic stakeholders and organizers and help local hosts and communities to generate direct revenue
- In April 2022, Airbnb partnered with Visit North Carolina to promote travel to 16 rural counties with an extensive focus on unique stays, charming experiences, and local attractions. This strategic initiative is aimed to support the regional post-pandemic recovery for restaurants, workers, and many unique local shops that rely on the local tourism industry
Some prominent players in the global alternative accommodation market include:
- Holidu
- Trivago
- Airbnb, Inc.
- Booking.com
- VRBO (Expedia Group)
- MakeMyTrip Limited
- Wyndham Destinations Inc.
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