Market Size of US Hospitality Industry
Study Period | 2020 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 235.96 Billion |
Market Size (2029) | USD 299.29 Billion |
CAGR (2024 - 2029) | 4.87 % |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
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United States Hospitality Market Analysis
The US Hospitality Market size is estimated at USD 235.96 billion in 2024, and is expected to reach USD 299.29 billion by 2029, growing at a CAGR of 4.87% during the forecast period (2024-2029).
The US hospitality industry encompasses diverse segments: lodging, F&B services, event planning, entertainment, and tourism. In recent years, the sector witnessed robust growth, buoyed by strong consumer spending, low unemployment, and a surge in domestic and international travel.
While leisure travel rebounded swiftly, business travel lagged, as consumers favored domestic locales and outdoor experiences. This preference shift shaped the recovery paths of hotels, resorts, vacation rentals, and outdoor recreational businesses. Technology emerged as a key driver, with digital platforms facilitating bookings, contactless payments, and elevating guest experiences. The F&B sector swiftly adapted to evolving consumer trends, placing a premium on off-premises options like takeout, delivery, and al fresco dining. Restaurants embraced technology, bolstering online ordering and contactless payment systems to prioritize customer safety and convenience.
United States Hospitality Industry Segmentation
The hospitality industry encompasses businesses and establishments primarily providing accommodation, food and beverage services, entertainment, event planning, and other related services to travelers, tourists, and local patrons. The US hospitality industry is segmented by type and segment. By type, the market is segmented into chain hotels and independent hotels. The market is segmented into service apartments, budget, and economy hotels, mid and upper-mid-scale hotels, and luxury hotels. The report offers market size and forecasts for the US hospitality industry in value (USD) for all the above segments.
By Type | |
Chain Hotels | |
Independent Hotels |
By Segment | |
Service Apartments | |
Budget and Economy Hotels | |
Mid and Upper Mid-Scale Hotels | |
Luxury Hotels |
US Hospitality Market Size Summary
The US hospitality industry is poised for significant growth, driven by a diverse range of segments including lodging, food and beverage services, event planning, entertainment, and tourism. The sector has experienced robust expansion in recent years, supported by strong consumer spending, low unemployment rates, and a notable increase in both domestic and international travel. While leisure travel has rebounded quickly, business travel has been slower to recover, with consumers showing a preference for domestic destinations and outdoor activities. This shift has influenced the recovery trajectories of various hospitality businesses, such as hotels, resorts, and vacation rentals. Technology has played a crucial role in this evolution, with digital platforms enhancing booking processes, enabling contactless payments, and improving overall guest experiences. The food and beverage sector has also adapted to changing consumer preferences, emphasizing off-premises options like takeout and delivery, and integrating technology to ensure customer safety and convenience.
The demand for hotel occupancy in the United States has been bolstered by factors such as business and leisure travel, events, and conventions. Economic conditions and consumer confidence have further fueled this growth, with many markets achieving record-high occupancy rates. Leisure travel remains a key driver of the industry's recovery, with major cities like New York, Las Vegas, and Orlando leading in vibrant hotel markets. The presence of international travelers is also pivotal, as they contribute significantly to occupancy rates and revenue across various lodging options. The tourism sector continues to be a major economic driver, with the US attracting a substantial number of international visitors, enhancing its appeal as a premier travel destination. The competitive landscape of the US hospitality industry is dynamic, with major players like Marriott International, Hilton Worldwide, and Wyndham Hotels & Resorts competing across various sectors. Emerging trends such as alternative lodging options, technological integration, and sustainability initiatives are shaping the industry's future.
US Hospitality Market Size - Table of Contents
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1. MARKET DYNAMICS AND INSIGHTS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Growing Tourism Increasing Demand for Hospitality Services
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1.2.2 Consistent Demand for Business Travel and Corporate Hospitality Services
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1.3 Market Restraints
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1.3.1 Stringent Government Policies and Regulations Limiting the Market Growth
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1.3.2 Lack of Skilled Labor is a Challenge for the Market
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1.4 Market Opportunities
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1.4.1 Integration of Technology Such as AI, Automation, and Data Analytics
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1.4.2 Rising Trend of Personalized Travel Experiences and Experiential Tourism
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1.5 Value Chain Analysis
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1.6 Industry Attractiveness: Porter's Five Forces Analysis
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1.6.1 Threat of New Entrants
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1.6.2 Bargaining Power of Buyers/Consumers
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1.6.3 Bargaining Power of Suppliers
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1.6.4 Threat of Substitute Products
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1.6.5 Intensity of Competitive Rivalry
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1.7 Impact of COVID-19 on the Market
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1.8 Insights Into Technological Advancements in the Industry
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2. MARKET SEGMENTATION
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2.1 By Type
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2.1.1 Chain Hotels
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2.1.2 Independent Hotels
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2.2 By Segment
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2.2.1 Service Apartments
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2.2.2 Budget and Economy Hotels
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2.2.3 Mid and Upper Mid-Scale Hotels
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2.2.4 Luxury Hotels
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US Hospitality Market Size FAQs
How big is the US Hospitality Market?
The US Hospitality Market size is expected to reach USD 235.96 billion in 2024 and grow at a CAGR of 4.87% to reach USD 299.29 billion by 2029.
What is the current US Hospitality Market size?
In 2024, the US Hospitality Market size is expected to reach USD 235.96 billion.