Alternative Accommodation Market Share, Size, Trends, Industry Analysis Report, By Accommodation Type (Home, Apartments/Condominium, Alternative Accommodation & Camping, Hostel, and Others); By Booking Mode; By Region; Segment Forecast, 2024 – 2032
- Published Date:Jan-2024
- Pages: 116
- Format: PDF
- Report ID: PM3757
- Base Year: 2023
- Historical Data: 2019-2022
Report Outlook
The global alternative accommodation market was valued at USD 146.99 billion in 2023 and is expected to grow at a CAGR of 14.0% during the forecast period.
To Understand More About this Research: Request a Free Sample Report
The significant rise in the adoption of mobile devices and applications based on travel booking in the recent years and surging prevalence for various travel management solutions that help travelers in proper online vacation planning coupled with the growing focus on travel companies on offering new programs with heavy discounts to attract more travelers, are the leading factors driving the global market. In addition, heavy investments in tourism sector particularly in developing economies like India, Thailand, Singapore, and Malaysia and implementation on numerous development activities backed by large government authorities, are also likely to offer huge expansion opportunities for the alternative accommodation market.
- For instance, in September 2022, Guesty, completed the acquisition of the YieldPlanet. This acquisition will expand the company’s offering & capabilities for the traditional hotels along with the company’s technology integrated with the platform.
Moreover, increasing innovations in technologies to enhance the guest experience and streamline operations that mainly include integrating smart home features, developing mobile apps for seamless bookings and communication, or utilizing virtual reality to showcase properties, that allow companies to attract new technologically aware customers and gain a competitive edge and be ahead of their competitors.
The alternative accommodation market report details key market dynamics to help industry players align their business strategies with current and future trends. It examines technological advances and breakthroughs in the industry and their impact on the market presence. Furthermore, a detailed regional analysis of the industry at the local, national, and global levels has been provided.
However, growing geopolitical issues between many countries, constantly changing consumer expectations about the accommodation, and rising number of fraud attacks with the significant evolution of different fraudulent techniques, are the major factors likely to restrain the demand and growth of the market over the coming years.
The outbreak of the COVID-19 pandemic has significantly impacted the growth of the alternative accommodation market. The rapid surge in fear of virus across the globe led to widespread cancellation and decrease in travel demand, as many countries have imposed lockdown measures and have closed their country borders as well for both trade and tourism purpose. However, as remote work became more prevalent during the pandemic, some individuals and families sought out alternative accommodations for longer stays or to combine work with leisure, that positively impacted the market.
Industry Dynamics
Growth Drivers
Increasing consumer spending power
The rapidly increasing consumer spending power on tourism like activities and surging prevalence among people for travel with different reasons including leisure, holiday, and business along with the continuously rising internet use across the world and ease of booking that allow travelers to book hotels or alternative accommodation with higher convenience, are among the primary factors propelling the demand and growth of the global market.
Furthermore, large number of travel agencies across the globe are heavily investing their time and effort to launch new and more advanced mobile-friendly or user-friendly websites, that offers several new features including complete 360-degree videos of the accommodation places with easy and straightforward price comparisons, helping tourists to easily understand the place they are looking for, which are also major factors fostering the demand and growth of the market.
Report Segmentation
The market is primarily segmented based on accommodation type, booking mode, and region.
|
By Accommodation Type |
By Booking Mode |
By Region |
|
|
|
To Understand the Scope of this Report: Speak to Analyst
By Accommodation Type Analysis
Home segment accounted for the largest market share in 2022
The home segment accounted for global market share in 2022, and is likely to retain its market position throughout the forecast period. The growth of the segment market is mainly accelerated by rising popularity and prevalence for homestays among both domestic and international travelers due to several factors including better privacy, ease of comfort, and safety. In addition, because of the low cost and friendly environment of homes, large number of travelers across the world are getting inclined towards the home-based vacation rentals, thereby positively influencing the segment market at rapid pace.
The apartments/condominium segment is projected to exhibit fastest growth over the next coming years, mainly driven by rising penetration for these accommodation types among millennials and business travelers due to its range of luxury amenities including sports clubs, swimming pools, and clubhouses among others. Beside this, staying in apartments or condominiums also allows travelers to immerse themselves in the local culture and experience life as a resident rather than a tourist, which in turn, has been propelling the market growth exponentially.
By Booking Mode Analysis
Online alternative accommodation booking segment held the significant market share in 2022
The online alternative accommodation booking segment held the maximum market share in 2022 and is also likely to gain highest growth rate over the study period, on account of rapid expanding usage and development of mobile applications and rapidly increasing internet penetration across the globe, that have significantly shaped the whole hotel and accommodation booking process through making it quite simpler and quicker.
- For instance, according to our findings, the number of people estimated to make online booking is around 700 million by 2023 and around 83% of US adults looking to book their trips online. And, 82% of all travel bookings in 2018 which was around 148 million bookings, occurred without any human interaction.
The rapid advancement of technology particularly in online booking platforms and mobile apps, that has made it easier for travelers to search, compare, and book alternative accommodations and focus on user-friendly interfaces, secure payment systems, and instant booking features enhancing the overall booking experience, are also likely to be key factors fostering the demand and growth of the segment market.
The offline alternative accommodation booking segment accounted for considerable market share, that is highly attributable to its ability to provide more personalized experience, as travelers can directly discuss their preferences and requirements with the property owners or travel agents and opt for best accommodation meeting their specific needs and requirements.
Regional Insights
North America region dominated the global market in 2022
North America held the largest share. The regional market growth cab be largely accelerated to region’s higher expenditure on booking accommodation in condominiums and homes and significant development of technologically advanced infrastructure in countries like US, & Canada. Additionally, business travelers across the region are increasingly considering alternative accommodations as viable options, especially for extended stays or in case of attending events in cities with limited hotel availability, thereby, creating ample growth and revenue opportunities for companies offering alternative accommodation services.
The Asia Pacific region is anticipated to register highest growth rate during the projected period, on account of continuously rising investments by both government and private organizations towards the sophisticated infrastructure development to attract more number of tourists. Moreover, some governments in the region have recognized the potential economic benefits of alternative accommodation on the market and have implemented several supportive regulations and policies include legalizing short-term rentals, implementing fair taxation systems, and promoting tourism development, that have paved the way for higher growth opportunities in the near future.
Key Market Players & Competitive Insights
The alternative accomodation market is fragmented and is anticipated to witness competition due to several players' presence. Major players in the market are constantly upgrading their products to stay ahead of the competition and to ensure efficiency, integrity, and safety. These players focus on partnership, product upgrades, and collaboration to gain a competitive edge over their peers and capture a significant market share.
Some of the major players operating in the global market include:
- Airbnb Inc.
- Agoda Homes
- Booking.com.
- HomeToGo
- Expedia Group
- Flipkey
- holidu.co.uk.
- HomeAway
- MakeMyTrip Limited
- Onefinestay
- Peakah
- Plum Guide
- Stay Alfred
- Sonder
- Trip.com Group Limited
- TripAdvisor Inc.
- Wyndham Destinations Inc.
- Wimdu
Recent Developments
- In January 2021, Leisure Hotels, introduced new “The Hideaway Bedzzz” in the Rishikesh, India, their first-ever property under the alternative accommodation segment. This new hotel offers ample opportunities for young and youthful travelers with their Smart Guest Rooms with the private sit-out areas & premium bunk accommodation. Along with this, the hotel also offers a veritable oasis in the center of town and a recreation lounge with the Alfresco sit-outs.
- In November 2022, Marriott International, announced the expansion of its existing portfolio of serviced apartments with the introduction of ‘Apartments by Marriott Bonvoy’ in Canada & United States. With the launch of Apartments by Marriott Bonvoy, the customers or guests will be able to easily shop a wider range of accommodation options within the company portfolio and also meet company’s desire to provide premium accommodations that offers home-like amenities.
Alternative Accommodation Market Report Scope
|
Report Attributes |
Details |
|
Market size value in 2024 |
USD 160.13 billion |
|
Revenue forecast in 2032 |
USD 477.57 billion |
|
CAGR |
14.0% from 2024 – 2032 |
|
Base year |
2023 |
|
Historical data |
2019 – 2022 |
|
Forecast period |
2024 – 2032 |
|
Quantitative units |
Revenue in USD million/billion and CAGR from 2024 to 2032 |
|
Segments covered |
By Accommodation Type, By Booking Mode, By Region |
|
Regional scope |
North America, Europe, Asia Pacific, Latin America; Middle East & Africa |
|
Key companies |
Airbnb Inc., Booking.com., MakeMyTrip Limited, Expedia Group, Trip.com Group Limited, TripAdvisor Inc., Wyndham Destinations Inc., HomeToGo, Peakah, holidu.co.uk., HomeAway, Agoda Homes, Sonder, Wimdu, Stay Alfred, Plum Guide, Onefinestay, and Flipkey. |
Want to check out the alternative accommodation market report before buying it? Then, our sample report has got you covered. It includes key market data points, ranging from trend analyses to industry estimates and forecasts. See for yourself by downloading the sample report.
FAQ's
Alternative Accommodation Market Size Worth $477.5 Billion by 2032
Key players in the Stay Alfred, MakeMyTrip Limited, Expedia Group, Airbnb Inc., Trip.com Group Limited.
North America contribute notably towards the global alternative accommodation market.
The global alternative accommodation market is expected to grow at a CAGR of 14.0% during the forecast period.
The alternative accommodation market report covering key segments are accommodation type, booking mode, and region.
© 2024 Polaris Market Research and Consulting. All rights reserved
