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The Global Boutique Hotels Market size is estimated to grow by USD 9.14 billion, accelerating at a CAGR of 6.51% between 2023 and 2027. The burgeoning tourism sector serves as a primary catalyst propelling market growth. This surge in tourism activity has catalyzed a heightened emphasis on sustainability and responsible tourism practices. Travelers are increasingly mindful of the ecological and societal ramifications of their journeys. Consequently, there is a growing emphasis on eco-friendly initiatives, community support, and the promotion of responsible tourism practices to appeal to environmentally and socially conscious travelers. These endeavors not only enhance reputation but also augment attractiveness to this demographic. Hence, the expansion of the tourism industry is poised to drive the global market's growth in the foreseeable future.
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The market is segmented by Type (business hotels, suite hotels, airport hotels, and resort hotels), Channel (online booking and in-person booking), and Geography (North America, Europe, APAC, South America, and Middle East and Africa).
The market share growth by the business hotels segment will be significant during the forecast period. Business hotels are equipped with amenities and facilities that cater specifically to the needs of business travelers. These may include well-equipped meeting rooms, conference facilities, high-speed Internet access, business centers, printing and copying services, and 24-hour room service. Such amenities help professionals stay productive and efficient during their stay.
Boutique Hotels Market
By Type
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The business hotels segment was valued at USD 6.48 billion in 2017 and continued to grow until 2021. The growing popularity of these can be attributed to several factors. Business travelers have unique needs and preferences when it comes to accommodation, and these are designed to cater to those specific requirements. They are typically located in or near commercial and financial districts, making them easily accessible to major business centers, corporate offices, and conference venues. This proximity saves time and offers convenience to business travelers who need to attend meetings, conferences, or networking events. Such factors will increase the segment growth during the forecast period.
Europe is estimated to contribute 29% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Market
By Europe
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In 2022, North America led the global market, holding the highest market share. Over the past decade, boutique hotels in North America have become increasingly popular, offering a more personalized and intimate experience compared to larger chain hotels. These unique accommodations are known for their stylish interiors, a trend boosted by the rise of social media platforms.
The market offers a unique and individualized experience to travelers, focusing on local culture and authenticity. These are known for their aesthetics, small size, and intimate atmosphere, providing high-quality service with a personal touch. They often integrate technology to enhance guest experiences and offer wellness and health services such as spas and yoga classes. With a strong presence on social media, they attract travelers seeking a more personalized and immersive stay, whether for business class, family trips, or educational outings. Examples include Townhouse, Life House, and offerings like Virgin Voyages' Scarlet Lady cruise ship, which provide a luxury experience at sea.
The expanding tourism industry is a key driver boosting the market growth. The rise in tourism has also led to an increased focus on sustainability and responsible tourism practices. Travelers are becoming more conscious of the environmental and social impacts of their stays. This emphasizes eco-friendly initiatives, support for local communities, and the promotion of responsible tourism practices that can attract environmentally and socially conscious travelers, contributing to their reputation and appeal. Moreover, the boutique hotel industry offers a unique experience by providing individualized experiences that immerse guests in the local culture, offering authenticity and aesthetics. These are known for their small size, which creates an intimate atmosphere and allows for high-quality service. Additionally, technology integration and wellness & health services are becoming increasingly important in the hospitality industry, catering to the modern traveler's needs.
The unique and authentic experience of boutique hotels is a major market trend. They often emphasize their connection to the local culture, heritage, and community. They may collaborate with local artists, designers, and artisans to showcase the region's unique features. This trend appeals to travelers who seek an authentic and immersive experience. They frequently provide unique amenities that showcase the local culture. These may include locally made toiletries, handmade soaps, artisanal teas or coffees, and other products sourced from nearby businesses. Due to such initiatives, tourists increasingly opt for boutique hotels, which will have a positive impact on the growth of the market in focus during the forecast period.
The seasonality and demand fluctuations of boutique hotels is a major challenge hindering market growth. They often experience fluctuations in demand based on the season. Vendors may witness higher demand during peak travel seasons, such as summer vacations or holidays, and lower demand during off-peak seasons. This can be influenced by factors such as weather, local events, and tourist attractions. Managing revenue during low seasons and ensuring consistent business throughout the year can be a challenge. Seasonal fluctuations in demand require to adjust their staffing and operations accordingly.
During peak seasons, additional staff may be required to handle increased guest volumes and provide a higher level of service. Conversely, during low-demand periods, they may need to reduce staff levels and streamline operations to manage costs effectively. Thus, seasonality and demand fluctuations will have a negative impact on the growth of the global market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the market growth and trends opportunities from 2017 to 2027.
The Market caters to the minimalist lifestyle, offering accommodations in little areas designed for comfort. They appeal to young people seeking short trips or extended vacations, promoting a balanced lifestyle. Particularly popular among millennials and budget leisure travelers, they attract hikers and a multinational, nomadic workforce.
In the post-pandemic world, with remote working becoming more prevalent, they offer technology-based units and cater to investors, property owners, developers, and hotel operators looking to automate business procedures and implement smart pricing strategies. This approach can lead to increased occupancy rates and revenues.
Boutique hotels focus on providing Vitamin Sea alternatives and B-Complex fitness programs, such as outdoor yoga, to promote wellness. They offer a unique retail range and encourage carbon offset purchases. In the cruise industry, they target millennial travelers with re-engineered components, offering a differentiated experience through their breakfast menu, reservation process, smarter locations, better buildings, and smarter rooms, all while maintaining affordability and building a strong brand.
The emergence of boutique accommodations, colloquially known as "tiny hotels," has garnered significant attention due to their trendiness. These establishments attract millennial travelers seeking unique experiences and personalized service. With a growing population of tech-savvy individuals, they often leverage automated business procedures to streamline operations and enhance efficiency. Additionally, they offer innovative amenities such as B-Complex fitness programmes, catering to health-conscious guests. One such example is The Perch, a trendy boutique hotel ship that has capitalized on the fad's appeal by offering bespoke experiences tailored to millennial travelers' preferences.
Boutique Hotels Market Scope |
|
Report Coverage |
Details |
Page number |
154 |
Base year |
2022 |
Historic period |
2017 - 2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.51% |
Market growth 2023-2027 |
USD 9.13 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.5 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 29% |
Key countries |
US, China, Germany, UK, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Dubai Holding LLC, Farmhouse Inn, Four Seasons Hotels Ltd., Hilton Worldwide Holdings Inc., Hyatt Hotels Corp., InterContinental Hotels Group Plc, ITC Ltd., Kerzner International Ltd., Koyasan guesthouse Kokuu, Mandarin Oriental International Ltd, Marriott International Inc., Shangri La Asia Ltd., The Indian Hotel Co. Ltd., The Pod Pte Ltd., The Travel Corp, Triple Creek Ranch, and Yotel Ltd. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
Customization purview |
If our market research report has not included the data you are looking for, you can reach out to our analysts and get customized segments. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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