Global hotel sector set to bounce back in 2022 but will remain off the pre-pandemic travel pace

Global hotel sector set to bounce back in 2022 but will remain off the pre-pandemic travel pace

The latest travel sector analysis by hotel booking platform, hoo, has shown that while the global hotel industry is set to bounce back in 2022, it still remains some way away from returning to pre-pandemic health. 

The latest market outlook from IBIS World estimates that the market size of the global hotel sector is set to hit just over $1trn in 2022. 

This marks a 47% year on year increase and the first positive movement since the start of the pandemic, which saw this market size decline by -39% in 2020 and a further -22% in 2021. 

However, despite this expected uplift, the total global market value will still sit 30% below the pre-pandemic level of $1.5trn.

The data also shows that the number of hotels and resorts operating in the sector is set to climb by 19% in 2022, although again, this remains marginally below 2019 levels having declined steadily during the pandemic. 

Hoo’s analysis of the sector also looked at the estimated revenue per hotel in the global sector based on market size ($) and the number of hotels operating within it. 

Individual revenues fell -32% in 2020 and by a further -17% the following year to just $1.28m per hotel, the lowest level since 2021. While hoo estimates that this figure will climb by 24% to $1.59m in 2022, it also remains -30% below the pre-pandemic revenues seen in 2019. 

hoo Co-founder, Adrian Murdock, commented:

“We seem to have finally turned a corner where pandemic travel uncertainty is concerned and there are high hopes that 2022 will be a far more settled year for the global travel industry. 

However, we’re unlikely to see a full return to health and the expectation is that the industry will remain below pre-pandemic performance levels well in to 2023. 

Regardless, many will simply be relieved that they are operational and welcoming holidaymakers back so that they can at least start to repair the damage done by Covid-19.”

Data on global hotel market share and number of hotels sourced from IBIS World.