Table of Contents
Executive Summary
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- Overview
- The issues
- Hotel choice relies on experience
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- Figure 1: Factors influencing lodging choice, April 2019
- Emerging travelers aren’t connecting with brands
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- Figure 2: Attitudes toward hotel brands, by generation and parental status, April 2019
- Homeshares are popular among younger travelers, parents
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- Figure 3: Attitudes of hotels vs homeshares, by age group, by parental status, April 2019
- The opportunities
- Higher tiers are seeing more growth
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- Figure 4: Types of accommodations stayed in, 2017 and 2019
- Hotels are appreciated and their value recognized
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- Figure 5: Attitudes toward the hotel experience, April 2019
- Food is a universal draw
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- Figure 6: Desirability of food amenities, by generation, April 2019
- What it means
The Market – What You Need to Know
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- The accommodations market continues to be strong
- Hotels, motels and casino hotels are all growing
- Loyalty programs are an important tool for brand consideration
- Big brands are expanding their portfolios
- Economic headwinds could temper healthy industry metrics
- Labor shortages could affect consumer satisfaction
Market Size and Forecast
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- Hotel industry will continue its steady growth
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- Figure 7: Total US revenues and fan chart forecast of hotel accommodations, at current prices, 2014-24
- Figure 8: Total US revenues and fan chart forecast of hotel accommodations, at current prices, 2014-24
Market Breakdown
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- All hotel industry segments show growth
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- Figure 9: Travel accommodations revenues, by segment, at current prices, 2016 and 2019
- Hotels and motels are the industry workhorse
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- Figure 10: Total US sales and fan chart forecast of hotels and motels, at current prices, 2014-24
- Casino hotels adapt to continue their growth
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- Figure 11: Total US sales and fan chart forecast of casino hotels, at current prices, 2014-24
Market Perspective
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- Loyalty programs are an important tool for hotels
- Easy booking is important to younger travelers
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- Figure 12: Hotel/accommodation booking lead times, by generation, February 2018
- Big brands are filling gaps in their portfolios
- Soft branding and lifestyle boutiques remain popular
Market Factors
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- GDP experiencing decelerating growth
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- Figure 13: GDP change from previous period, Q1 2007-Q1 2019
- Occupancy is steady for each season
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- Figure 14: US hotel occupancy, January 2017-March 2019
- ADR continues its steady climb
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- Figure 15: US hotel ADR, January 2017-March 2019
- Despite blip, RevPAR continues record streak
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- Figure 16: US hotel RevPAR, January 2017-March 2019
- Nice hotels you’re building…
- …shame there’s nobody to staff ’em
Key Players – What You Need to Know
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- OTAs are E-A-Ting hotel revenues
- Guests are thinking globally and locally
- Hotel tech is getting away from guests…
- Google will run Lodgingtown
- From hotel lobby to town square
- The future won’t have hotel companies or homeshare companies
Leading companies
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- Best Western International
- Background
- New news
- Choice Hotels International
- Background
- New news
- Hilton Worldwide Holdings, Inc.
- Background
- New news
- Hyatt Hotels
- Background
- New news
- InterContinental Hotels Group (IHG)
- Background
- New news
- Marriott International
- Background
- New news
- Wyndham Hotels and Resorts
- Background
- New news
What’s Happening?
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- Direct booking efforts aren’t resonating
- Wellness tourism taking off
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- Figure 17: The Vessel at Hudson Yards
- Going green to earn green
- “Alexa…go away.”
- Bringing local flavor to the hotel room
- Casinos betting on experiences
- Hotels are be places to be seen
What’s Next?
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- Upscale hotels look to be tech LIDAs
- Google will dictate hotel booking
- It’ll all be lodging
The Consumer – What You Need to Know
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- Adults average three hotel stays per year
- With age comes experience, and revisitation
- Being an upscale hotel guest is something to aspire to
- A good stay starts with a free breakfast
- Robots haven’t taken over…yet
- Hotels matter for vacations, and brand matters for hotels
- Hotels are generally preferred to homeshares
- Hotel guest segments
Hotel Choices
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- Average American has 3 hotel stays per year
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- Figure 18: Mean and median stays in paid accommodations, 2017-19
- Hotel stays are getting more upscale overall
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- Figure 19: Types of accommodations stayed in, 2017 and 2019
- Upscale and higher tiers attract $75K and higher
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- Figure 20: Type of accommodation stayed in, by household income, April 2019
- Age plays a factor in lodging choice
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- Figure 21: Type of accommodation stayed in, by age, April 2019
- Parents are cost-conscious
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- Figure 22: Type of accommodation stayed in, by parental status, April 2019
- Motel men
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- Figure 23: Economy/motel patronage, by gender, April 2019
Hotel Influences
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- Experience determines choice
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- Figure 24: Factors influencing lodging choice, April 2019
- Reaching guests can be hard to control directly
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- Figure 25: TURF Analysis – Hotel influences, April 2019
- Age stresses experience
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- Figure 26: Factors influencing lodging choice, by age group, April 2019
- Younger generations look for style and profiles
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- Figure 27: Factors influencing lodging choice, by generation, April 2019
- Parents have more tangible considerations
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- Figure 28: Factors influencing lodging choice, by parental status, April 2019
- High-end earners’ influence is cyclical
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- Figure 29: Factors influencing lodging choice, by household income, April 2019
Hotel Guests
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- Hotel Guest Perceptions
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- Figure 30: Correspondence Analysis – Symmetrical map – Perceptions of hotel guests, April 2019
- Midscale hotels – the future of casual chic?
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- Figure 31: Perception of Midscale hotel guests, by age group, April 2019
Hotel Amenities
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- If you feed them, they will come
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- Figure 32: Desired hotel amenities, April 2019
- Go ahead and let guests eat and swim
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- Figure 33: TURF Analysis – Hotel amenities, April 2019
- Holding onto the brunch bunch
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- Figure 34: Desirability of food amenities, by generation, April 2019
- Parents look to get a lot from their hotels
- “Wellness” isn’t for everyone
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- Figure 35: Desired hotel amenities, parent vs non-parent, April 2019
Hotel Tech
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- Guests prefer individual, purposeful tech
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- Figure 36: Desired hotel tech, April 2019
- TV and seamlessness win out
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- Figure 37: TURF Analysis – Hotel tech, April 2019
- Younger travelers are comfortable with digital help
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- Figure 38: Desired hotel tech, by age group, April 2019
- High earners want a simple stay
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- Figure 39: Desired hotel tech, by household income, April 2019
- Parents welcome robot overlords
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- Figure 40: Desired hotel tech, by parental status, April 2019
Attitudes Toward Hotels
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- Hotels are crucial to the vacation experience
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- Figure 41: Attitudes toward the hotel experience, April 2019
- Older guests have more appreciation for hotels
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- Figure 42: Attitudes toward the hotel experience, by age group, April 2019
- Room exists to change parents’ perceptions
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- Figure 43: Attitudes toward the hotel experience, by parental status, April 2019
- Add-ons aren’t worth added cost
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- Figure 44: Attitudes toward the hotel experience, by select demographics, April 2019
- Hotel brand matters
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- Figure 45: Attitudes toward hotel brands, April 2019
- Brand retention difficult among younger generations, parents
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- Figure 46: Attitudes toward hotel brands, by generation and parental status, April 2019
- Price isn’t everything, but matters more to some
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- Figure 47: Attitudes toward hotel booking, by generation, by parental status, April 2019
- Price-conscious guests are adept at booking through OTAs
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- Figure 48: Attitudes toward OTA/hotel website search, by generation and parental status, April 2019
Hotel vs. Homeshare Perceptions
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- Hotels are well-liked, but losing the perception battle in trendy categories
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- Figure 49: Descriptions of lodging, hotels vs homeshares, April 2019
- Parents, younger travelers are warmer toward homeshares
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- Figure 50: Attitudes around hotels vs homeshares – value and convenience, April 2019
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- Figure 51: Attitudes of hotels vs homeshares – value and convenience, by age group and by parental status, April 2019
Hotel Consumer Segmentation
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- Factors
- Villa Valuers (VVs) (27%)
- Four-wall Finders (FFs) (28%)
- Hotel Huggers (HHs) (27%)
- Independent Interactors (IIs) (18%)
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- Figure 52: Hotel consumer segments, April 2019
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- Figure 53: Attitudes toward hotels and hotel alternatives, by hotel consumer segments, April 2019
Appendix – Data Sources and Abbreviations
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- Data sources
- Fan chart forecast
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
- TURF Methodology
- Correspondence Analysis Methodology
Appendix – The Market
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- Figure 54: Total US revenues and fan chart forecast of travel accommodations, at current prices, 2014-24
- Figure 55: Total US revenues and forecast of travel accommodations, at inflation-adjusted prices, 2014-24
- Figure 56: Total US retail sales and forecast of hotels and motels, at current prices, 2014-24
- Figure 57: Total US retail sales and forecast of hotels and motels, at inflation-adjusted prices, 2014-24
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- Figure 58: Total US retail sales and forecast of casino hotels, at current prices, 2014-24
- Figure 59: Total US retail sales and forecast of casino hotels, at inflation-adjusted prices, 2014-24
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Appendix – The Consumer
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- Figure 60: Table - TURF Analysis – Hotel influencers, April 2019
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- Figure 61: Table – TURF Analysis – Hotel amenities, April 2019
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- Figure 62: Table - TURF Analysis – Hotel tech, April 2019
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