Capsule Hotel Market Growth, Size, Trends, Analysis Report by Type, Application, Region and Segment Forecast 2022-2026

The capsule hotel market share is expected to increase to USD 49.14 million from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 9.86%.

This capsule hotel market research report provides valuable insights on the post-COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers capsule hotel market segmentations by mode of booking (offline booking and online booking) and geography (APAC, North America, Europe, South America, and Middle East and Africa). The capsule hotel market report also offers information on several market vendors, including Book and Bed Tokyo, Container Hotel Group, CVS Bay Area Inc., De Bedstee Capsules Hotel B.V., Dream Lodge, First Cabin HD Co. Ltd., Hostels Hub Point S.L., Inbox Capsule Hotel, Koyasan guesthouse Kokuu, Nadeshiko Hotel, Nonze Hostel, Pangea Pod Hotel, RB Hospitality Pte Ltd., Riccarton Capsule Hotel, TAKE Hostel Conil, The Bed KLCC, The Capsule Hotel, The Pod Sydney, Time Capsule Retreat, Tubohotel, and Urban Pod Pvt. Ltd. among others.

What will the Capsule Hotel Market Size be During the Forecast Period?

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Capsule Hotel Market: Key Drivers, Trends, and Challenges

The growing disposable income of travelers is notably driving the capsule hotel market growth, although factors such as the negative impacts of the pandemic may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the capsule hotel industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Capsule Hotel Market Driver

• The growing disposable income of travelers is one of the key drivers propelling the capsule hotel market growth.
• For instance, from 2000 to 2020, the disposable per capita income in China increased by around 700%. In Japan, households, on average, spend 22% of their gross-adjusted disposable income on leisure activities.
• The increasing disposable income improves the standard of living of people, which enables them to spend their income on travel activities.
• The improving economic condition in Brazil is estimated to drive the growth of the capsule hotel market in the country during the forecast period.
• For instance, according to The World Bank Group (WBG), Brazil's gross domestic product (GDP) was $1.45 trillion in 2020. With the estimated GDP growth of Brazil of 1.4% in 2022, the disposable income of travelers will rise, which will increase spending on travel activities and augment the growth of the global capsule hotel market during the forecast period. 

Key Capsule Hotel Market Trend

• The growth of the global travel and tourism industry is one of the key capsule hotel market trends fueling the market growth.
• In the last few decades, the tourism industry has witnessed significant growth, especially in regions such as Europe, Southeast Asia, and North America. While Brazil has traditionally been a country with the strongest tourism industry in South America
• Air passenger traffic has increased due to the growth of the tourism industry. This growth in air passenger traffic is also expected to be fueled by the growing affluence of the middle-class population in emerging markets, such as China and India.
• The global investments in airport infrastructure are expected to increase significantly during the forecast period. For instance, China currently plans to have 400 airports operational by 2035. The country plans to construct an additional 160 airports over the next 14 years. These factors will promote the growth of the tourism industry in the country, which, in turn, will have a positive impact on the capsule hotel market during the forecast period. 

Key Capsule Hotel Market Challenge

• The negative impacts of the pandemic is one of the key factors challenging the capsule hotel market growth.
• The governments of countries worldwide imposed pandemic-induced restrictions and nationwide lockdowns from early 2020 to contain the spread of the disease. There were cancelations of flights and a reduction in domestic and outbound tourists in H1 2020 globally.
• As per the data provided by Eurostat, in April 2020, Europe witnessed a decline in domestic tourism by 93% as compared with the same month of the previous year.
• In MEA, most domestic and international airlines were forced to cancel their flights due to strict quarantine measures and lack of passengers. Regional airlines such as Dubai-based Emirates Airlines, Abu Dhabi-based Etihad Airways, and Qatar Airways experienced significant losses in 2020.
• According to the data provided by the Department of Tourism of Chile, in March 2020, tourist arrivals in Chile dropped by 63% compared with the same month the previous year. In Colombia, travel agencies witnessed a decline in sales of 70% in 2020. Such a decline in tourist arrivals will challenge the capsule hotel market growth during the forecast period.

This capsule hotel market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Who are the Major Capsule Hotel Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

• Book and Bed Tokyo
• Container Hotel Group
• CVS Bay Area Inc.
• De Bedstee Capsules Hotel B.V.
• Dream Lodge
• First Cabin HD Co. Ltd.
• Hostels Hub Point S.L.
• Inbox Capsule Hotel
• Koyasan guesthouse Kokuu
• Nadeshiko Hotel
• Nonze Hostel
• Pangea Pod Hotel
• RB Hospitality Pte Ltd.
• Riccarton Capsule Hotel
• TAKE Hostel Conil
• The Bed KLCC
• The Capsule Hotel
• The Pod Sydney
• Time Capsule Retreat
• Tubohotel
• Urban Pod Pvt. Ltd.

This statistical study of the capsule hotel market encompasses successful business strategies deployed by the key vendors. The capsule hotel market is fragmented and the vendors are deploying growth strategies such as better amenities, services, costs, and offering discounts to compete in the market.

Product Insights and News

• Bookandbedtokyo.com - The company operates a capsule hotel with concept rooms designed for book lovers.
• First-cabin.jp - The company operates a capsule hotel that offers first-class cabins, business class cabins, economy class cabins, and premium cabins.
• Nadeshiko-hotel.jp - The company operates a capsule hotel with disinfection sheets, alcohol sprays, and mattresses which is made of a specific fiber.

To make the most of the opportunities and recover from the post-COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The capsule hotel market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Capsule Hotel Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the capsule hotel market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

Which are the Key Regions for Capsule Hotel Market?

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41% of the market's growth will originate from APAC during the forecast period. China and Japan are the key markets for the capsule hotel market in APAC. Market growth in this region will be slower than the growth of the market in North America and Europe.

The increase in spending by millennials on travel activities will facilitate the capsule hotel market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

What are the Revenue-generating Mode of Booking Segments in the Capsule Hotel Market?

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The capsule hotel market share growth in the offline booking segment will be significant during the forecast period. Through offline booking, customers can book rooms according to their preferences. They do not have to deal with claiming refunds, which is the case with online booking. Vendors can offer their customers additional schemes, which would not be available through online booking. Discounted prices and budget-friendly options provided by vendors through the offline booking mode further drive customer footfall in their hotels. Thus, such factors in the offline booking segment will drive the capsule hotel market growth during the forecast period.

This report provides an accurate prediction of the contribution of all the segments to the growth of the capsule hotel market size and actionable market insights on the post-COVID-19 impact on each segment.

Parent Market Analysis

Technavio categorizes the global capsule hotel market as a part of the global hotels, resorts, and cruise lines market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the capsule hotel market during the forecast period.

COVID Impact and Recovery Analysis

The outbreak of COVID-19 had a negative impact on the regional market. However, in H2 2020, the COVID-19 cases in the region were reduced due to the availability of vaccines. The governments of China, Japan, and India lifted travel restrictions, and the domestic and outbound tourism levels returned to normal. Thus, such factors will drive the capsule hotel market growth in APAC during the forecast period.

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What are the Key Data Covered in this Capsule Hotel Market Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive capsule hotel market growth during the next five years
• Precise estimation of the capsule hotel market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the capsule hotel industry across APAC, North America, Europe, South America, and Middle East and Africa
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of capsule hotel market vendors

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