Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- Figure 1: Total US revenues and forecast of travel accommodations, by segment, at current prices, 2011-21
- The issues
- Modern hotel amenities are of less interest to older travelers
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- Figure 2: Interest in modern hotel amenities – TV and tech, by age, March 2017
- Price-sensitive travelers only want to pay for the basics
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- Figure 3: Attitudes toward hotels and other accommodations – price items, by household income, March 2017
- More-frequent travelers have more favorable opinions of home shares
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- Figure 4: Attitudes toward home-sharing rentals, by travel frequency segments, March 2017
- The opportunities
- Online reviews – whether positive or negative – influence younger travelers
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- Figure 5: Influences for hotel vs home rental or home share stays – good online reviews, by age, March 2017
- Amenities and reviews are important to young women
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- Figure 6: Influences for hotel stays – select items, by gender and age, March 2017
- Home rental/home sharing services attract young travelers
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- Figure 7: Used a home rental/home share, provides a better overall experience, by age, March 2017
- What it means
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The Market – What You Need to Know
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- Robust growth for travel accommodations over the past five years
- All segments growing, hotels and motels are dominant
- Outside players, consolidation shake up the hotel industry
- Consumer confidence at odds with business travel forecast
Market Size and Forecast
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- Hotel and accommodations growth outpaces total spending growth
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- Figure 8: Total US revenues and fan chart forecast of travel accommodations, at current prices, 2011-21
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- Figure 9: Total US revenues and forecast of traveler accommodations, at current prices, 2011-21
Market Breakdown
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- All segments of the hotels and accommodations market show growth
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- Figure 10: Travel accommodations revenues, by segment, at current prices, 2014 and 2016
- Hotels and motels account for 72% of the market
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- Figure 11: Total US retail sales and fan chart forecast of hotels and motels (excluding casino hotels), at current prices, 2011-21
- Accounting for one quarter of the market, casino hotels grow modestly
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- Figure 12: Total US retail sales and fan chart forecast of casino hotels, at current prices, 2011-21
- RV parks, other accommodations are small but fast-growing players
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- Figure 13: Total US retail sales and fan chart forecast of RV parks and recreational camps and other accommodations, at current prices, 2011-21
Market Perspective
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- Retailers and lifestyle brands enter the hotel scene
- Hotel loyalty programs continue to update and upgrade
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- Figure 14: Hotel loyalty programs, by estimated number of members, April 2017
- Big brands get bigger with consolidation and new developments
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- Figure 15: Largest hotel groups (global), properties, brands
- Home shares and peer-to-peer rentals gaining ground
Market Factors
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- Consumer sentiment at highest level in more than a decade
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- Figure 16: Consumer Sentiment Index, January 2007-April 2017
- Domestic business travel growth slows, international arrivals may suffer
- Millennials seen as key to growth . . . but don’t forget the Baby Boomers
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- Figure 17: Population, by generation share, 2017
Key Players – What You Need to Know
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- Acquisitions makes big brands even bigger
- Airbnb reigns as social media king
- Experience above all
- Legislation, regulation, and cybercrime, oh my!
- Hotel brands look to get smarter and more socially responsible
Leading Companies
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- AccorHotels
- Best Western International
- Choice Hotels International
- Hilton Inc.
- Hyatt Hotels
- InterContinental Hotels Group (IHG)
- Marriott International
- Wyndham Hotel Group
- Airbnb
Social Media Breakdown
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- Hotels may need to revamp their social media to boost engagement
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- Figure 18: Social media terms and definitions
- Airbnb dominates social media landscape . . .
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- Figure 19: Cross-channel posts over past year, by accommodations brand, April 2016-17
- . . . and boasts the highest engagement per post among lodging brands
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- Figure 20: Cross-channel engagement totals over last 12 months, April 2016-17
- Airbnb’s and W Hotels’ content is more than just about its hotels
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- Figure 21: We Accept | Airbnb
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- Figure 22: Cross-channel engagement rate over last 12 months, April 2016-17
What’s Working?
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- Accommodation brands invest in experiences
- Large hotel chains emulate smaller, independent boutiques
- Lodging brands join the home share market with luxury rental brands
- Direct booking wars
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- Figure 23: How to Land a Job with Grace Helbig, August 2015
What’s Struggling?
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- Legislative changes could mean a decline for hotels
- Hotels trying to understand Millennials
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- Figure 24: Hilton and IBM pilot “Connie,” the world’s first Watson-enabled hotel concierge, March 2016
- Hotel chains struggling with cybercrime attacks and data breaches
What’s Next?
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- First came pop-up stores. Are pop-up hotels next?
- From soap to food, hotels look to reduce waste
- Hotel subscription services
- Invisible service may help travelers truly live like locals
- Hotel brands compete to see which is the smartest
The Consumer – What You Need to Know
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- Travelers are most likely to stay at hotels, namely midscale and upscale
- Hotels are more positively perceived than home shares/rentals
- Good past experiences are key for future stays at all accommodations
- Streaming services and smart TVs are most desired services at hotels
- Travelers want adventure, but not from their accommodations
- Frequent travelers are most open and positive about home shares
Accommodations Used in the Last 12 Months
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- Eight in 10 traveled overnight in the past year
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- Figure 25: Overnight travel, by key demographics, March 2017
- 91% of past year travelers have stayed in a hotel
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- Figure 26: Accommodation types used, March 2017
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- Figure 27: Stays at hotels vs hotel alternatives – count of stays, March 2017
- Young men use more diverse types of accommodations
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- Figure 28: Accommodation types used – select items, by gender and age, March 2017
- Hotel stays correlate with income, hotel alternatives used by all
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- Figure 29: Accommodation types used, by household income, March 2017
- Most stayed at brands are Best Western, Marriott, and Hampton Inn
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- Figure 30: Hotels used in the previous 12 months, top 10 hotels, October 2015-November 2016
Perceptions of Hotels vs Home Rentals/Home Shares
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- Travelers view hotels far more positively than home rentals/home shares
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- Figure 31: Perceptions of hotels vs home rentals/home sharing, March 2017
- Hotels have stronger advantage for security, reliability among women
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- Figure 32: Perceptions of hotels vs home rentals/home sharing – Hotels better, by gender, March 2017
- Young travelers more positive about home rentals/home sharing
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- Figure 33: Perceptions of hotels vs home rentals/home sharing – Hotels better, by age, March 2017
Influences for Hotels and Alternatives
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- Past experience tops list of hotel influences, price for non-hotels
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- Figure 34: Influences for hotel vs home rental or home share stays, March 2017
- Hotel guests consider much more than physical offerings
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- Figure 35: TURF Analysis – Influences for hotel stays, March 2017
- Reputation and service influence young men, women consider amenities and reviews
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- Figure 36: Influences for hotel stays – select items, by gender and age, March 2017
- High earners prioritize past experiences, consistency, loyalty programs
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- Figure 37: Influences for hotel stays – select items, by household income, March 2017
- Cost, good past experience yield greatest reach for home share/rentals
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- Figure 38: TURF Analysis – Influences for home rental or home share stays, March 2017
- Women more likely to consider cost, convenience, getting just what they want
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- Figure 39: Influences for non-hotel stays – select items, by gender, March 2017
- Online influences and unique properties/location impact younger travelers
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- Figure 40: Influences for non-hotel stays – select items, by age, March 2017
Interest in Modern Hotel Amenities
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- Tech innovations related to entertainment inspire interest at hotels
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- Figure 41: Interest in modern hotel amenities, March 2017
- Younger travelers who have stayed at a hotel are most attracted to modern offerings
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- Figure 42: Interest in modern hotel amenities – select items, by age and gender, March 2017
- Multicultural guests most interested in in-room entertainment upgrades
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- Figure 43: Interest in modern hotel amenities – TV items, by race and Hispanic origin, March 2017
Attitudes toward Hotels and Other Accommodations
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- Travelers want adventure, but not necessarily from their lodging choice
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- Figure 44: Attitudes toward hotels and other accommodations, March 2017
- Young travelers have most optimistic view of home sharing
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- Figure 45: Attitudes toward hotels and other accommodations – home-sharing items, by age and gender, March 2017
- Amenities may not be enough to attract travelers, especially low earners
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- Figure 46: Attitudes toward hotels and other accommodations – price items, by household income, March 2017
- Parents embrace local culture, but stick to “touristy” activities
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- Figure 47: Attitudes toward hotels and other accommodations – local immersion items, by parental status, March 2017
Travel Frequency Segments
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- Figure 48: Travel frequency segments, March 2017
- 42% of Ultra Travelers stayed at a non-hotel accommodation last year
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- Figure 49: Stays at hotels vs hotel alternatives, by travel frequency segments, March 2017
- Travel frequency impacts sentiment of overall experiences
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- Figure 50: Perceptions of hotels vs home rentals/home sharing, overall experience, by travel frequency segments, March 2017
- Good past experiences, brand reputation, and consistency are key
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- Figure 51: Influences for hotel stays – select items, by travel frequency segments, March 2017
- Frequent travelers want efficient processes and wellness services
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- Figure 52: Interest in modern hotel amenities, by travel frequency segments, March 2017
- Home shares and home rentals are a sweet spot for frequent travelers
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- Figure 53: Attitudes toward hotels and other accommodations, home share and home rental items, by travel frequency segments, March 2017
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Appendix – Data Sources and Abbreviations
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- Data sources
- Fan chart forecast
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
- TURF methodology
Appendix – The Market
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- Figure 54: Total US revenues and forecast of traveler accommodations, at inflation-adjusted prices, 2011-21
- Figure 55: Total US revenues and forecast of traveler accommodations, by segment, at current prices, 2011-21
- Figure 56: Total US revenues of traveler accommodations, by segment, at current prices, 2014 and 2016
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- Figure 57: Total US revenues and forecast of hotels & motels, at current prices, 2011-21
- Figure 58: Total US revenues and forecast of hotels & motels, at inflation-adjusted prices, 2011-21
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- Figure 59: Total US revenues and forecast of casino hotels, at current prices, 2011-21
- Figure 60: Total US revenues and forecast of casino hotels, at inflation-adjusted prices, 2011-21
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- Figure 61: Total US revenues and forecast of RV parks and recreational camps & Other accommodations, at current prices, 2011-21
- Figure 62: Total US revenues and forecast of RV parks and recreational camps & Other accommodations, at inflation-adjusted prices, 2011-21
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