Hospitality industry statistics to have on your radar 2024

hospitality industry statistics

The hospitality industry is a vast sector with many different sub-sectors that include recreation, lodging, entertainment, food and beverage which are constantly evolving. Due to the overwhelming amount of data available today, it has become increasingly challenging for industry players to gather all the necessary hospitality statistics to keep up with the latest trends. As a result, staying informed and up-to-date has become an impossible task.

Despite being an exhilarating career path with many avenues that demand a diverse skill set, the hospitality industry is currently struggling to fill open positions. This is partly due to the changing nature of jobs and employee expectations.

Customer needs and expectations have evolved in recent times, largely due to the global pandemic which spurred a seismic shift in industry trends. As well as other factors such as technological advancements such as Artificial Intelligence.

In the absence of access to data that tells a story, industry players are finding it increasingly challenging to optimize their social and digital strategies.

This is especially problematic for hoteliers and destination marketers who are already overwhelmed with their day-to-day responsibilities.

Of course, business owners should closely analyse their own business data but it's also important to take a look at the bigger picture.

In this comprehensive article, we have gathered a wealth of hospitality statistics and data that will equip you with the insights you need.

Our goal is to empower you to harness the power of analytics in the hospitality industry to drive innovation, exceed customer expectations, and achieve remarkable value.

The hospitality and leisure industry data

Trends in the hospitality industry have always been in a state of flux because client demands are always shifting with the times.

Understanding hospitality industry statistics allows you to properly equip yourself to handle your client needs. Analysing industry data and insights will help you to figure out and deploy the right strategies to take your business to the next level.

Current state of the hospitality industry

By examining top level statistics, you can gain insights into the present condition of the hospitality industry at large and gain a glimpse into its future.

The travel industry is experiencing a robust comeback in 2024, bringing a ray of hope for hoteliers who have been eagerly awaiting positive signs.

The industry anticipates a steady growth rate

Industries such as hospitality, which were affected by COVID-19 safety measures, are seeing some impressive growth rates since the resurgence of travel worldwide. The statistics below indicate just how impressive the current and future growth rates are.

  1. The hospitality industry experienced a remarkable growth from $4,390.59 billion in 2022 to $4,699.57 billion in 2023, achieving a compound annual growth rate (CAGR) of 7.0%. This significant expansion is a testament to the industry's resilience and ability to bounce back from the challenges posed over recent years. (Hospitality Global Market Report 2023)
  2. The projected growth of the global hospitality market is set to soar to a staggering $5,816.66 billion by 2027, with a remarkable compound annual growth rate (CAGR) of 5.5%. (Hospitality Global market report 2022)

Growth trends in specific sub-sectors

Due to changes in consumer expectations, preferences and the rapid advancement of technology (among other factors), some areas in the hospitality industry are seeing a bigger growth rate than others. The statistics below shed light on these areas.

Hotel booking statistics

  1. Room demand is set to reach an all-time high in 2024 according to STR research.
  2. Siteminder predicted hotel occupancy will increase 2.5% globally and Hotel average daily rate (ADR) is projected to grow by 4.9% in the next 12 months.
  3. The bleisure market continues to rise —business trips which are extended for leisure purposed. The bleisure tourism market was estimated to be valued at nearly US$ 594.51 billion in 2023, and is predicted to continue to grow to $731.4 billion by 2032, with a CAGR of 8.9% from 2023 to 2032. (Future Market Insights).

Key stakeholders' market share and consumer influence

The hotel and lodging industry is monopolized by a few major players globally. Overall the market continues to expand and consumer trends dictate which of these brands gain more market share.

  1. Booking.com is the most valuable travel and tourism brand in the world, with a market capitlization of $121.42 billion. (Companies Market Cap).
  2. Airbnb's market value reached $92.11 billion in U.S. dollars in 2023, representing a significant increase from $54.13 billion the previous year. However, it has experienced a decline from its peak valuation in 2021, surpassing a staggering $100 billion. (Statista).
  3. Today Airbnb's market value stands at $74 billion, commanding market share of over 20% in the vacation rental industry.
  4. The declining valuation is thought to be due to rising rental pricing and overwhelming choice of properties. (HelpLama).
  5. As of 2024 Marriott International is the world's biggest hotel brand valued at $62.56 billion.
  6. It is estimated that a further 2,707 hotels will open their doors globally in 2024. (Statista).

Food & Beverage statistics

  1. The Online Food Delivery Market, which includes both Grocery Delivery and Meal Delivery services, experienced significant growth during the COVID-19 Pandemic. This market is projected to continue its upward trajectory with a compound annual growth rate (CAGR 2023-2028) of 11.47%.
  2. As a result, the food delivery market volume is expected to reach a staggering US$1.79tn by 2028. (Statista).
  3. According to Fortune Business Insights, the global food service market was valued at $3,236.92 billion in 2023 and is expected to grow to $3,486.58 billion in 2024.
  4. The Business Research Company reports that the fast food and quick service restaurant market will grow from $295.03 billion in 2023 to $316.11 billion in 2024, with a compound annual growth rate (CAGR) of 7.1%.
  5. The ready-to-drink (RTD) coffee and tea market is expected to grow significantly in the coming years, reaching $133 billion by 2027.
  6. Functional health drinks are trending and is currently valued at $213.74 billion in 2024 and is predicted to grow to $306.76 billion by 2029.

Health & wellness statistics

  1. The global health and wellness market is estimated to reach almost seven trillion U.S. dollars by 2025. (Statista).
  2. The global medical spa market was valued at an estimated US$14.4 Billion in the year 2022 and is projected to reach a revised size of US$45 Billion by 2030.
  3. The spa services market represents an 88-billion-dollar global industry and is expected to grow by over 17 percent to 260 billion dollars between 2023 and 2030.
  4. Facial treatments, tattoo ramoval, hair removal and medi-spa retreats are all experiencing rapid growth.

Jobs & employment in hospitality & leisure

It goes without saying that hospitality and travel businesses have suffered as a result of the pandemic and economic difficulties. As a result the hospitality jobs market took a hit.

Whilst travel restrictions are firmly a thing of the past the economic uncertainties continue, making the hospitality jobs market recovery slow.

Many of those laid off workers in 2020 found more reliable jobs with better perks and more sociable hours elsewhere. When should we expect a full recovery? The statistics answer these questions best.

  1. A new position in hospitality becomes available every 2.5 seconds.
  2. The hospitality, catering, and tourism (HCT) industry accounts for approximately 3% of the total global workforce.
  3. The Travel and Tourism sector was expected to employ approximately 320 million individuals in 2023, showcasing a steady growth trend after experiencing a decline in numbers in 2020. This decline saw employment figures drop from 334 million in 2019 to 271 million. However, the industry is now on the path to recovery, with employment opportunities steadily increasing once again. (Unilever). Discover the types of jobs available in this exciting growth sector.
  4. Hotels will struggle with staffing shortages until 2025 when the industry is expected to make a true adjusted recovery.

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Travel & tourism statistics

If 2022 was the year travel returned following the pandemic, 2023 was all about making up for lost time and ticking off bucket list items and it seems 2024 is no different. In short, there's a healthy outlook to the travel and tourism sector in 2024 and beyond. To better understand the current changes and future of travel and tourism, we have compiled the statistics below.

General travel & tourism industry statistics

The general travel and tourism statistics below show the current and future state of the travel and tourism sector as a whole.

  1. The projected market volume is set to reach an impressive US$1,063.00 billion by 2028, with revenue expected to display a steady annual growth rate (CAGR 2023-2028) of 4.42%. (Statista).
  2. By 2028, online sales are projected to account for a staggering 76% of total revenue in the Travel & Tourism market. (Statista).

Growth trends in specific areas

The growth of the travel and tourism sector has been influenced by several factors including ease of access to information, an increase in the amount of paid leave, and rapid urbanization among others. Despite the pandemic slump, the industry is now doing well and is projected to do even better over the next few years, as indicated by the following statistics.

  1. Global tourism expenditure is projected to reach USD2 trillion, surpassing previous records driven by the strong demand for leisure travel. (Euromonitor International).
  2. As employees strive for a better work-life balance, the resurgence of business travel becomes a more intricate affair. In line with this shift, bleisure travel is poised to make a significant impact, with predictions indicating that it will soar to an impressive USD300 billion by 2024. This trend highlights the growing desire among professionals to combine work and leisure, creating a unique and enriching travel experience. (Euromonitor International).
  3. These 5 countries will be the fastest growing tourism destinations in 2024: Tunisia, Mexico, Morocco, Dominican Republic, and Sri Lanka. (Travel Off Path).

Domestic vs. international travel

The statistics below help to better understand the "new traveler" whos is most likely planning 2 domestic trips and 2 international trips in 2024.

  1. International travel has rebounded post pandemic however going forward into 2024 it's clear that whilst consumer sentiment is very much in favor of international travel, domestic travel is much more budget friendly. (Travel + Leisure).
  2. Global business travel will fully recover by 2024. It is forecast to increase by 14% in 2022, with the US and China seeing the largest growth (30% each). (Leslie Josephs)

Air, cruise & ground transport

The widespread adoption of the internet as a source of information, the ease of mobility and increased awareness of new destinations have brought significant changes to how consumers travel. The statistics below show how much travel has changed and what to expect.

  1. Global flight numbers were still below pre-pandemic levels at the end of 2023. According to the International Air Transport Association, global airlines anticipate that approximately 4.35 billion individuals took flights in 2023, a slight decrease from the 4.54 billion flyers in 2019.
  2. In the global airline industry, it was anticipated that 2023 brought in net profits of $9.8 billion, although these profits will come with a razor-thin net profit margin of 1.2%. (Mint)
  3. Rail transport is set to experience exponential growth in 2024, emerging as the fastest-growing travel category worldwide with an impressive growth rate of 35.6% over the course of 2023-2024. (Euromonitor International).
  4. According to some travel experts, fly-to-the-meeting and fly-back-from-the-meeting day trips will stop being popular as more people prefer multi-day bleisure trips. (SAP Concur Study of Global Business Traveler)

Jobs & employment in travel & tourism

As it was with all other sectors and industries, the travel and tourism sector experienced a labor shortage in 2023, but will it continue?

  1. Jobs in travel and tourism were still below pre-pandemic levels at the end of 2023 at a projected 320 million jobs. But with the growing demand for travel, jobs in this sector are set to rise to 430 million by 2033. (Statista).
  2. Candidates for these open positions have different expectations and priorities compared to those before the pandemic. They expect flexible working arrangements, skills training, and diversity and inclusion. Hotels will have to adapt to fill open positions. (AHLA )
  3. New positions are opening up that are centred around digitalization, technology and sustainability.

Demographic statistics: Who's travelling in 2024?

Different segments play different roles in the travel and tourism industry. To fine-tune your digital strategy, you have to know your target market well and understand what they expect when they travel. Here are a few stats that show some key domgraphics that may be relevant to your business.

  1. In the modern era, travel has become increasingly digitalized, with 67% of consumers projected to make their travel bookings online in the year 2024.
  2. An interesting trend among post-pandemic travelers is the shift towards a younger demographic, with millennials (aged 30-44) comprising the largest portion of Wellness Worshippers, Leisure Seekers, Luxury Seekers, and Digital Travelers, as revealed by Euromonitor's Voice of the Consumer: Travel Survey. This highlights the changing preferences and behaviors of travelers in the modern era.
  3. The luxury segment is growing. Luxury Seekers are most commonly found in countries across the Middle East and Asia Pacific, while Eco-Adventurers tend to be prevalent in both Asia Pacific and Europe. On the other hand, Cultural Explorers are predominantly found in various countries throughout Europe.
  4. There is expected to be a 15% growth in sales of sports tourism packages sold through travel intermediaries from 2023 to 2024. (Euromonitor International).

Hospitality & travel is evolving at speed

In 2024, the hospitality and travel sectors will be evolving at a rate of knots. Vacant positions and shifting consumer preferences define the landscape. Seamless online booking is now a necessity, just the beginning of a guest-centric approach. Elevating the experience means personalized on-site services, setting leaders apart.

Yet, beyond technology lies a deeper need—embracing diversity and inclusion as fundamental values. To cater to the evolving traveler, a blend of high-tech solutions and high-touch experiences aligning with their beliefs is vital. Statistics serve as signposts in this transformative journey. Adaptability is the key to survival, while a comprehensive guest journey and commitment to diversity steer success.

Amidst change, strategies demand recalibration. Embrace adaptability, shape a holistic guest experience, and embed diversity and inclusion into your brand. These principles navigate the industry toward leadership in the evolving hospitality and travel landscape of 2024.

Sources:

World Travel and Tourism Council, STR, UNWTO, Forbes, Statista, Future Market Insights, US Travel Association, Alice, UK Government, CNBC, Market Data Forecast, The World Bank, The Caterer, Hospitality World by The Economic Times, Bureau of Labor, McKinsey, Research and Markets, Resolution Foundation, Allied Market Research, Euromonitor International, World Economic Forum, STR, NPD Group, Deloitte, American Hotel & Lodging Association, The Business Research Company, Hotels News Resource, ResDiary, International Labour Organization, Data Appeal, Euromonitor International, UREN, Mordor Intelligence, Travel + Leisure, Travel Off Path, Mint, SAP Concur study, Fortune Business Insights, The Business Research Company.