A new report from Future Market Insights suggests that compact rooms could be the wave of the future, with the industry project to grow significantly in the next year as travel comes back online.
With Travel Coming Back, Travelers Eye Smaller, Cheaper, Compact Spaces
Travel has come back in a big way in 2022. With countries opening borders and flight frequency increasing globally, flyers are once again eager to see the world. But as those travelers go to their favorite destinations, they also need a place to stay once they get there.
Once thought of as a novel concept, 2023 could be the year of the micro hotel. According to the study from Future Market Insights, the industry could grow to over $150 billion dollars by the end of next year, with both North America and the Asia Pacific regions holding the highest market share of small rooms.
There are several factors going into the demand growth for micro hotels. Beyond price, the COVID-19 pandemic has increased traveler awareness of the option, with cleanliness and privacy impacting the micro hotel industry by 30%. Online, travelers are searching for micro hotels with more frequency as they come online through booking channels and social media. Finally, more destinations are embracing the small room craze, as New Zealand, the United States, France, Japan, the United Kingdom and Italy coming forward as the top destinations for micro hotels.
“By providing all-inclusive packages and sparing travelers from the trouble of navigating several channels for their excursions, the major [micro hotel] players are able to keep their competitive advantage in the market,” the report summary reads. “Government investments and initiatives are stimulating the market, and they have also assisted the businesses in enhancing their service offerings.”
Full-Service Hotels Remain on Radar for Years to Come
Although micro hotels are growing in popularity, major hotel chains are still betting on travelers wanting bigger spaces and full-size hotels in the future. A 2021 report shows hotels were planning to develop over 300,000 new rooms in the coming years across over 3,000 construction projects.
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Feature image courtesy: Marten Bjork on Unsplash
Source: frugal travel guy