The hospitality industry is big and diverse. Besides, every sector—from accommodation and recreation to travel and entertainment—is on constant change. As a result, it’s certainly impossible to collect all the hospitality statistics they need to stay abreast of the latest trends.
Without the numbers, it’s becoming increasingly difficult for industry players to fine-tune social and digital strategies. Even worse: hoteliers and destination marketers are swamped by day-to-day tasks.
Fortunately, in this article, we’ve compiled all the hospitality statistics and data you need. The idea is to help you use analytics in hospitality to fundamentally drive innovation, delight customers, and capture value. We’ve even noted down a few online booking software that can potentially help you improve your operations.
General Hospitality Statistics
There is no doubt the hospitality industry has enjoyed unprecedented growth over the years. Driven by rising consumers’ purchasing power, a robust global economy, and digital innovation, the industry has experienced a historic burst and each sector is poised to flourish. Generally, in spite of the many looming challenges, the hospitality industry is set to maintain its growth trajectory in the coming years.
Key Hospitality Industry Statistics
- In 2017, the travel and tourism industry in the US generated more than $1.6 trillion in economic output. This output represented 2.8% of the total gross domestic product. (travel.trade.gov, 2017)
- Additionally, in 2017, the gross booking and revenue were $799 billion. This is a significant growth compared to $556 billion posted in 2009. (Deloitte, 2019)
- To illustrate, all sectors of the travel industry grew by more than 4% CAGR from 2009 to 2017. (Deloitte, 2019)
- Besides, according to a hospitality report, 81% of travelers want greater digital customer service from hotel brands. (PWC, 2019)
- Also, the hospitality industry exports accounted for up to 11% of total US exports in 2017. Moreover, the industry exports accounted for 32% of total US services exports. (Selectusa.gov, 2018)
- Hospitality market data reveal that of all the sectors that make up the hospitality industry, airt travel, accommodation, and food services, contribute over 50% of the total output. (Selectusa.gov, 2018)
- Besides, in total, the travel and tourism industry accounts for 10.2% of the global GDP. (Deloitte, 2018)
- Asia accounts for more than 30% of the global $1 trillion business travel sector. (McKinsey, 2016)
- The travel and tourism sector is one of the fastest-growing industry, accounting for over 10% of the world’s GDP. (Sommet Education, 2019)
- Apparently, large chains lose 10% to15% of total revenue as commission paid to third-party booking services. On the other hand, small chains and small hotels pay between 18% and 22% of their revenue as commission to third-party services. (PWC, 2019)
- The US needs $4.5 trillion to improve travel infrastructure by 2025 to prevent it from impacting GDP and job growth. (Deloitte, 2019)
Key Hospitality Industry Employment Statistics
- Better still, at the height of the Great Recession, there were approximately 353,000 open positions in hospitality in the United States. As of 2018, the hospitality industry in the US had 1,139,000 job openings. (Deloitte, 2019)
- Consequently, to attract new employees, hospitality industry players are forced to increase wages. As a result, wages now account for 25% to 30% of the total revenue. (Deloitte, 2019)
- More importantly, 10% of the total global workforce is employed by the tourism industry. (Deloitte, 2019)
- Immigrants account for 13% of the total US population. However, immigrants account for 31% of the total workforce in hotels and lodgings in the US. (Deloitte, 2019)
- Also, between 12.3% and 23.7% of the total Uk hospitality industry employees are EU nationals. (KPMG, 2017)
The sectors of the hospitality industry seem to be faring well, especially in the US market. However, the much-hyped benefits in the industry come with strings attached. Apparently, they carry significant challenges and disruptions that can topple a business off its course.
While much of the buzz about disruption stems from innovation and technology, you should not lose track of economic trends. This is because, like every other sector of the economy, hospitality is not immune to ebbs and flows of economic tides. You should also keep an eye on the critical business travel statistics to better redefine your serving offerings.
Being a key pillar of the hospitality industry, the impact of transportation cannot be underestimated. Today, the global travel industry is billed as the fastest and largest growing sector of the hospitality industry. The airline, cruise, and ground transportation sectors are the highlights and the statistics below tell the story well.
- In general, all sectors of the US travel and hospitality industry has recorded growth in the focus period 2009 to 2017. The hotel industry grew by a CAGR of 6%, followed by cruise, which grew by 5.2%, airline (4.6%), car rentals (4.6%). During the same period, the restaurant sector recorded a growth of 4.4%. (Deloitte, 2019)
- Besides, the volume of online searches in the travel industry has increased steadily since 2014. In fact, the volume of online searches in each subsector was as follow air travel (PWC, 2019)
- What drives transportation decisions? Apparently, 52% of travelers go for the fastest option, 34% go for the most affordable option, and 34% want options where kids are easier to manage. (Expedia Group, 2019)
- Interestingly, over the last two decades, international travel departures have increased exponentially to reach 1.3 billion in 2017. (Deloitte, 2018)
- Impelled by many growth drivers, the US travel industry grew steady to hit a record of $353 billion in 2017. (Deloitte, 2018)
- An average customer shifts over 50 times across desktops, tablets, smartphones, and channels when researching travel online. (McKinesy, 2018)
The solid travel demand has benefited many sectors, and cruise is a prime example. While there is a tendency by travelers to stick to traditional vacation experience, the specialized experience of cruise is gaining momentum. In fact, customer perception around time spend on cruise ships is changing and the growth trajectory for cruise is well on the upturn.
- In the focus period 2009 to 2017, the cruise passengers grew from 10.4 million to 12.4 million. (Deloitte, 2019)
- However, hospitality data show that 55% of the global cruise passengers are from the United States. (Deloitte, 2019)
- With 12.4 million passengers in 2017, the cruise industry in the US registered $18 billion in gross revenue. (Deloitte, 2019)
- Interestingly, only 5% of travelers with Gen Alphas, use a cruise ship as the mode os transport for family travel. (Expedia Group, 2019)
Air Travels Statistics
Even better, the transformation of air travel over the last few years has been mesmerizing. Commoditization backlash has set airline revolution on high gear and every brand is fighting hard to reel in the benefits. The transformation has been enormous, and as more players roll out basic economy products, the frenetic speed of change is showing no signs of cooling off.
- Hospitality market size data showed that the gross revenue of airline in 2017 was $222 billion. (Deloitte, 2019)
- In 2017, some airlines in the US recorded an approximately 20% annual increase in premium packages revenue. (Deloitte, 2019)
- Air travel is the second-largest subsector of the hospitality industry. In 2017, air travel accounted for nearly 17% of the total hospitality industry spending. (Selectusa.gov, 2018)
- Also, 54% of travelers with Gen Alpha use the plane as the mode of transportation for family travel. (Expedia Group, 2019)
- Besides, the air travel industry provides approximately 0.9 million jobs in the US. (Selectusa.gov, 2018)
- In total, travelers spent over $270 billion on air transportation services in 2017. (Selectusa.gov, 2018)
Ground Transportation Statistics
- Moreover, 47% of travelers with Gen Alphas, use the car as the mode of transportation for family travel. (Expedia Group, 2019)
- 31% of family travelers use a personal car to get around in-market. On the other hand, 28% walk, 27% use rental cars, 21% use a taxi, and 6% use bikes. (Expedia Group, 2019)
- Some ride-hailing car brands and P2P rentals have gone all out to deliver fully IoT-connected cars by 2020. (Deloitte, 2019)
Source: Expedia Group Designed by
Leaders of the different sectors of the hospitality industry often talk about the power of disruptive forces. But few have felt the pinch like the travel industry. The major disruptive forces have changed the way things are done in this industry. In fact, each sector of the travel industry is exploring its own path to digitization, and the stage is set for a monumental shift.
As a result, both incumbent and new players need to adapt to change to tap into the massive upside potential. For example, airlines need to implement real-time integration between revenue management and CRM software systems. This way, it will be easy to reach the level of sophistication required to implement dynamic pricing and sound revenue management.
On the other hand, ground transport providers should look beyond the current capabilities of ride-hailing apps. That is; they should turn to both ecosystem partnerships and organic product providers to widen their multimodal solutions to meet the demands of modern customers.
Like any other sector, the hospitality industry is driven by consumer needs and demands. But customers’ preferences, values, and expectations are not universal, nor are they fixed. The statistics below reveal the growing pool of global travelers, their evolving mindsets, and the unique preference of different demographics groups.
Domestic Traveler Statistics
- Besides, local and international travelers in the US spent 1089.03 billion. (Statista, 2019)
- In 2018, domestic tourists in the US spent $932.7 billion on travel. (Statista, 2019)
- Also, in 2022, travelers in the US will spend more than $960 million on domestic travel. (Statista, 2019)
- Interestingly, in 2017 France welcomed the highest number of visitors at 90 million. Other countries that led the way include Spain (82million), USA (77 million), China (61), Italy (58 million), and Mexico (39 million). (The Guardian, 2019)
International Traveler Statistics
- Additionally, a hospitality market share report showed that international arrivals in the US increased by 0.7% in 2017. (Deloitte, 2019)
- In 2017, expenditure by international visitors in the US reached more than $251 billion. (Selectusa.gov, 2018)
- Even better, the department of commerce estimates that by 2023, the total number of annual international visitors in the US will be 95.5 million. (travel.trade.gov, 2017)
- Besides, over the last two decades, international arrivals in the United States grew by 72%, to reach 76 million in 2017. (Deloitte, 2018)
- In 2018, the US had approximately 39.88 million overseas visitors. (Statista, 2019)
- Also, in 2018, a record 1.4 billion people traveled abroad for their holidays. (The Guardian, 2019)
- Besides, 71% of global travelers expect travel service providers to deliver sustainable travel choices. (Booking.com, 2019)
- On average travelers with Generation, Alphas make more than three family trips every year. To illustrate, travelers with Gen Alpha take 1.2 kid-free leisure trips, 2.4 family leisure trips, 1.8 business trips, 0.7 kid-free bleisure trips, and 0.8 family bleisure trips. (Expedia Group, 2019)
Millennial Travelers Statistics
- Interestingly, millennial travelers will account for more than 50% of all global hotel guest by 2020. (PWC, 2019)
- Also, 66.7% of millennials plan their trips on mobile devices. (PWC, 2019)
- Moreover, 25% of Millenials find their holiday accommodation through social media platforms. (PWC, 2019)
- Up to 64% of millennials book hotel rooms on their smartphones. (PWC, 2019)
- Besides, 23% of millennials have checked in their holiday accommodation using a smartphone. (PWC, 2019)
- Better still, 60 million of Millenials tweet on hotels’ Twitter platform. (PWC, 2019)
- On the other hand, 97% of millennials post their holiday pictures on a social media platform. (PWC, 2019)
- More importantly, 80% of millennials are likely to settle for a service that sends recommendations based on their budget and preferences. (PWC, 2019)
- Interestingly, 78% of millennials prefer to spend their earnings on experiences and not things. (Sommet Education, 2019)
Key Traveler Preference Statistics
- Also, nothing is as important as an entertained and happy family when traveling. Actually, 95% of travelers with Gen Alphas say that keeping their family happy and entertained is of the utmost importance. (Expedia Group, 2019)
- The majority (55%) of family traveler take trips to relax, 54% take family play vacation, visiting family/friends (47%), sightseeing (41%), romantic gateway (25%), special event (21%), and bleisure trips (21%). (Expedia Group, 2019)
- Interestingly, family travel decisions are influenced by travel review sites (63%), family/friends/colleagues (46%), search engine (46%), young children (43%), social media (35%), online videos (28%), online ads (22%). (Expedia Group, 2019)
- Most importantly, appealing imagery influences 54% of travel decisions. Other things that influence decisions include deals (53%), informative content (50%), helpful reviews (44%), and simple language (35%). (Expedia Group, 2019)
Generally, the overarching themes around how consumer mindsets are changing center around personalized experience and authenticity. Today’s tourists define a brand based on the quality of service across its proliferation of touchpoints, including wearable apps, desktops, and mobile devices. Because of this, brands must strive to infuse elements of personalization, on-demand, and authenticity to remain relevant online, on the property, and on the go.
Destination and accommodation are two factors that shape traveler preferences. The following statistics show that as the pool of travelers grows, so do the number of attractive destinations. Also, the stats offer compelling insights that can help destination marketers to refine their strategies to match the growing demand of modern travelers. Besides, studying the data, make you sure to understand the significant restaurant statistics.
- How do different factors influence accommodation decisions? At 41% location weigh heavily in accommodation decisions followed by family needs (39%), price (36%, family friend offerings (31%), room size (31%), and deal/promotion (21%).(Expedia Group, 2019)
- In the US, only 25% of the total hospitality submarkets are experiencing positive Revenue Per Available Room (RevPAR). This is way off the usual 40% to 45% that implies a broader downturn for the industry. (Deloitte, 2019)
- In the focus period 2010 to 2016, the RevPAR for the US lodging industry grew at an average of 6%. (Ernest & Young, 2017)
- Accommodation is the largest hospitality industry subsector in terms of total output. In fact, this industry accounts for approximately 20% of the total hospitality-related spending. (Selectusa.gov, 2018)
- The accommodation subsector supplies approximately 2.1 million jobs in the US. (Selectusa.gov, 2018)
- In 2017 alone, tourists spent over $300 billion on traveler accommodation. (Selectusa.gov, 2018)
- Interestingly, 37% of vacation travelers prefer staying at a value hotel than at a shared lodging. (PWC, 2019)
- Once checked in, 90% of millennials connect to the hotel WiFi. (PWC, 2019)
- 58% of family travelers stayed in a hotel on their last trip. On the other hand, 21% stayed in a resort, 17% were hosted by friends/family, and 16% stayed in a vacation rental. (Expedia Group, 2019)
Key Destination Statistics
- Additionally, one hospitality market research revealed that 24% of family travelers spend most on hotels, 16% on food, 15% on a flight, 10% on tours, 10% of transportation, and 8% on shopping. (Expedia Group, 2019)
- Fun and entertainment activities in the family travel itinerary include theme parks and attractions (74%), water activities (67%), outdoor activities (55%), and historical landmarks. Others include water activities dining experiences (40%), Museum visits (38%), educational experiences (28%), and guided tours (26%). (Expedia Group, 2019)
- The global in-destination industry will hit $183 billion by 2020. (Deloitte, 2019)
- 55% of global travelers say they are determined to make effective travel choices, but face multiple barriers when trying to actualize this. (Booking.com, 2019)
- Better still, when 51% of US travelers decide to go on a trip, they spend up to seven days conducting research. (Facebook IQ)
- In the last 12 weeks leading to the trip, there are three times more experience searches than hotel searches. (Booking.com, 2019)
Whether you are a hotelier or a marketer, the increasing demands of modern travelers should be a wake-up call. You should know that guests today want relevance everywhere. For this reason, you need to orchestrate personalization across all digital channels and customer touchpoints. This is by no means an easy task, and it will require harnessing the capability of IT innovators as well as savvy marketing professionals. Besides, you will need to implement a workflow using top marketing software as well as robust restaurant management software.
Without booking, the hospitality industry is an incomplete jigsaw. Booking plays an important role in helping guests connect with hoteliers and other service providers in the industry. The following statistics unearth key booking trends and the changing customer preferences when it comes to booking.
- Additionally, 70% of global travelers are more likely to book an eco-friendly accommodation, whether they are looking for a sustainable stay or not. (Booking.com, 2019)
- More importantly, according to Google data, flights and hotels are booked in advance of 12 weeks. (ThinkWithGoogle, 2019)
- Travelers who book their activities ahead spend 81% more on transportation and 47% more on accommodation. (ThinkWithGoogle, 2019)
- Besides, 48% of experience bookings happen when visitors arrive at their destination. (ThinkWithGoogle, 2019)
- Interestingly, most hotel bookings are made at 10 am CET, whereas the least bookings happen at 6 am CET. (TrekkSoft, 2019)
- In 2018, there were 66.7% direct website bookings, 9.1% marketplace bookings, and 24.3% third-party service bookings. (TrekkSoft, 2019)
- The global travel bookings reached $1.6 trillion in 2017. (Deloitte, 2018)
- On the other hand, according to another Deloitte US Travel and Hospitality Outlook report, US hotel gross bookings revenue in 2017 was $185 billion. (Deloitte, 2019)
It’s clear that booking is one area that is evolving rapidly. Consumers seem to favor planners offering best-in-class booking experiences. And, as it stands, investing in online booking tools is no longer enough to win customers.
Today, brands that want to drive booking should endeavor to remove the friction between online travel planning and booking. One way of achieving this is by combining insights and cognitive automation to implement intelligent agents that redefine service delivery.
Leading Online Booking Software
- YouCanBook.me. An online booking software that can be embedded directly to your website. Learn about its other booking management features like tentative booking status, follow up emails, and credit card payments here in our YouCanBook.me review.
- Acuity Scheduling. An intuitive appointment scheduling platform for corporate events. It comes with features like activity tracking, real-time calendar availability view, employee management, and multiple location management that you can learn about in this Acuity Scheduling review.
- Bookeo. Book and schedule appointments using Bookeo’s intuitive user interface. Read how its features like an appointment calendar, business performance analysis, and website integration can simplify your booking processes in our Bookeo review.
- SimplyBook.me. This online scheduling and booking system is used by many businesses to streamline their scheduling processes. See how its features like a POS system, customizable booking pages, and membership management can optimize your workflow here in this SimplyBook.me review.
- Checkfront. This intuitive and easy-to-use platform helps businesses simplify their scheduling and booking management tasks. Read about how its unique features such as inventory management and online payment processing can help you eliminate booking hassles in our Checkfront review.
Technology in Hospitality Statistics
The rise of new technology has been a breath of fresh air into the hospitality industry. Technologies such as AI, IoT, Automation, Blockchain, and voice technology are shaping the industry enabling businesses to offer guests greater convenience, control, and customization.
- In 2017, smartphones accounted for 43% of the total travel-related requests. Besides, they accounted for nearly 23% of all logistics related searches. (McKinesy, 2018)
- Interestingly, 25% of Hospitality and leisure CEOs think AI will significantly impact the way they operate in the next five years. (PWC, 2019)
- Moreover, 70% of millennials are likely to book holiday accommodation using a tech amenity like mobile payments, Smart TVs, or keyless entry. (PWC, 2019)
- At least 8 of the global leading hotel chains have implemented VR experiences in their marketing strategy. (PWC, 2019)
- Interestingly, hotels that are using virtual tour are getting up to 135% increase in online revenue. (PWC, 2019)
- Since implemented a VR staff training program, Best Western Hotel has reaped tangible benefits. Some of the benefits include a 71% decrease in guest complaints, a 19% increase in customer service ratings, and reduced onboarding time. (PWC, 2019)
- Hospitality research revealed that 10% of family travelers use ride-sharing apps to get around in-market. (Expedia Group, 2019)
Hospitality is a people-centric industry, and technology is not here to pull it away from its ethos. Besides aiding personalization and customization, new technologies are providing unique ways to free up employees in the industry. It’s allowing businesses to redefine their services and spend less time on redundant tasks and more on the guests.
What do these Hospitality Statistics Mean to your Business?
There you have it, our compilation of the hospitality statistics you should know. In summary, the hospitality industry is on a surge and every sector is reaping the benefit. From transportation and booking to accommodation, each sector is growing steadily, and the speed won’t let off any soon. A closer look into the statistics reveals compelling insights that can help you gain an in-depth understanding of hospitality markets and customers.
For example, it easy to see that personalization is the new buzzword that transcends different sectors, delivering a profound impact. The compelling influence of personalization is driven by the fact that consumers eat, sleep, cement relationships, seek cures, and play games in hospitality facilities. This dynamism makes personalization a pillar of success for the hospitality businesses.
Clearly a new era, highlighted by optimistic global growth, is rising. Also, challenges like increased competition, growing commoditization, and demographic shifts have their claw out to derail your strategy. Besides, generation Alpha is playing a crucial role in the changes taking place in the industry. On the other hand, millennials seem to be a demographic cohort with unique preferences, needs, and increased demands. When aggregated, all these factors present critical challenges that can easily impede business growth.
Luckily, new technologies are here to help you scale above the heights of these challenges. The ball is your court now; all you need to do is to master new technologies concepts and innovate strategically. This way, it will be easy to implement better customer targeting, yield innovative products, and improve pricing to gain significant growth in both profits and revenue. You can read our guide on AI-powered customer service, to learn how technology can boost your service delivery.