GLOBAL BUDGET HOTELS – KEY TRENDS AND ISSUES
The global budget hotel market industry grew in 2015 due to demand for affordable accommodation, with an increase in the middle-class population in Asia-Pacific and European regions. The US ranked first in the budget hotels segment with room supply of 874,591 in 2015, followed by the UK and China, while Malaysia was the fastest-growing market at a CAGR of 12.2%. In terms of occupancy rate, Asian countries led from the front with Hong Kong (87% in 2015) at the top, followed by Japan and Singapore. In terms of RevPAR, Hong Kong (US$117.6 in 2015) topped the list, followed by Egypt and the UK.
The branded domestic budget hotel chains are the driving force for the growth of online hotel booking sales in India. According to the Google Travel Trends report, with an online market presence of more than 300 million Indians and just 20% of the total hotel inventory available online, both new and established branded budget hotel chains such as Lemon Tree and Treebo Hotels are looking for the opportunity to bring quality budget hotels to the online platform across the nation. In 2015, brand budget hotel queries’ annual growth increased at 179%, compared to the general queries on the budget hotels, which was just 37%. Overall accommodation queries grew at 37% annually. Budget hotel queries accounted for 35% of total accommodation queries.
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Published: Jan 2017
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