Compiled by Trisha Roy
The hospitality industry that includes lodging, event planning, theme parks, transportation, cruise line, travelling and additional fields within the tourism industry, is a broad category. The hotel industry gains a number of profits and experiences growth in customer demand by 5–6 percent throughout 2018. They are also improving their performances adequately. Hoteliers will be looking for an opportunity in strategic places, including a revisit of the midscale experience, health and wellness, traveler-facing technology and loyalty.
This statistic gives us a clear idea by year on year average global hotel rate growth from 2010 to 2018. The highest increment has been observed in 2018 is 3.7 per cent. In US, the average daily rate of the hotel industry reached around US$123.37 in 2016.
| Year | Annual Growth in Hotel rates (in percentage) |
| 2010 | 4.7 |
| 2011 | 7.4 |
| 2012 | -1.5 |
| 2013 | 0 |
| 2014 | 1.8 |
| 2015 | 2.6 |
| 2016 | 2.5 |
| 2017 | 2.5 |
| 2018 | 3.7 |
Airbnb adoption
A recent research on hotel market defined rising of Airbnb adoption. More than 49 per cent agreed that they had replaced a traditional hotel stay with an Airbnb stay in 2016. Dealing with the customer demand in digitally connected world has driven these assets-light businesses continuously into the mainstream.
| Airbnb replaces traditional hotel bookings | 2015 | 2016 |
| Traditional Hotel | 41% | 49% |
| Bed & Breakfast | 35% | 37% |
| Family/Friends | 33% | 35% |
| Extended stay hotels | 29% | 26% |
| Vacation rental site | 19% | 22% |
| other vacation rentals | 22% | 22% |
| corporate apartments | 20% | 20% |
| other | 5% | 4% |
| would not have taken trip if not for Airbnb | 4% | 2% |
Consumer reviews
On recent times, the power of consumer reviews brought a change in the hospitality industry. They are trying to make their review process advantageous for growth of their business. Around 54 per cent global users will never prefer hotels which does not have reviews. Almost 65 per cent prefer hotels, always responsive to their customer queries and reviews.
China achieved first position in hospitality and tourism industry
China’s position in the hospitality and tourism industry is rapidly growing. In 2016 the National Development and Reform Commission (NDRC) and the China National Tourism Administration announced their upcoming project to invest 2 trillion yuan($290billion) for hospitality and tourism by 2020.
Not only China’s inbound market is booming but also millions of Chinese travelers having outbound market demand across the world. It has been declared by World Travel monitor being best performer in outbound travel market in 2016, spending US$261 billion on foreign travel, which is far more than any other county’s outbound tourist.
| countries | Best performing outbound markets 1-8,2016(Increase in outbound trips(%) |
| China | 18% |
| South Korea | 11% |
| USA | 7% |
| Poland | 7% |
| Ireland | 7% |
| UK | 6% |
| Netherlands | 6% |
| Spain | 6% |
| Denmark | 6% |
| Germany | 4% |