- Summary
- Table Of Content
- Methodology
Beach Hotels Market Introduction :
Consegic Business Intelligence analyzes that the beach hotels market size is growing with a CAGR of 4.5% during the forecast period (2024-2031). The market accounted for USD 159.86 billion in 2023, and the market is projected to be valued at USD 218.16 Billion by 2031.
Beach Hotels Market Definition & Overview :
Beach hotels are accommodations situated in close proximity to the seashore. They offer a wide range of services and amenities, catering to different types of travellers such as families, couples, and solo travellers. One of the main attractions of these hotels is their prime location on the beachfront. These hotels offer an array of activities, amenities, and a pleasant ambience to their guests. As per the analysis, some of these hotels even provide private beach access, offering guests additional exclusivity and serenity. Apart from swimming and sunbathing, guests can enjoy water sports such as surfing, snorkelling, or kayaking. Many hotels also feature pools, on-site restaurants, spas, and even water slide parks, particularly larger resort-style hotels. They typically have a laid-back and casual atmosphere, often incorporating coastal or nautical themes in their architecture and decor. Vibrant colours, open terraces, and plenty of outdoor seating are among the features that guests can expect to enjoy while soaking up the sunshine.
Beach Hotels Market Insights :
Beach Hotels Market Dynamics - (DRO) :
Key Drivers :
A surge in travel and tourism is contributing to the phenomenal market expansion
The booming travel and tourism sector globally is leading to increased demand for vacation accommodations of all types, including these hotels, which is driving the market. Several factors including growing disposable income, increased leisure time and focus on wellness and relaxation are contributing to the significant rise in travel and tourism. As economies strengthen and personal incomes rise, more people have the resources to travel and explore new destinations. Additionally, based on the analysis, beach destinations are often associated with relaxation and escape from the stresses of everyday life, making them a popular choice for travellers seeking well-being and rejuvenation further boosting the beach hotels market.
Moreover, the escalating travel and tourism sector is fueling the beach hotels market expansion.
For instance,
- According to the data provided by the World Travel and Tourism Council, the Travel & Tourism sector contributed 7.6% to global GDP in 2022, which is an increase of 22% from 2021.
As a result, the rising travel and tourism sector is motivating the beach hotels market demand.
Technological advancements are fostering significant markets
Technological advancements are contributing to significant beach hotels market trends across the globe. The emergence of online booking platforms and travel aggregators has significantly facilitated the process of discovering and booking hotels, thereby rendering them more convenient for travellers. Additionally, as per the analysis, social media has emerged as an influential factor in shaping travel decisions, where the popularity of beach destinations is often amplified by online visuals and experiences shared by others. Simultaneously, the adoption of technologically advanced services such as smart hotel rooms, the Internet of Things, smart check-in services, and cybersecurity, among others, is driving the demand for advanced hotels.
For instance,
- In November 2023, W South Beach, a renowned Marriott hotel in Miami, unveiled its USD 6 billion ballroom and meeting space renovation. The space is equipped with innovative 360 projection technology, a first for a hotel in North America. The 3D-mapping technology combines storytelling, visual and audio effects, and technical precision to transform the 4,300-square-foot ballroom into any setting. This allows guests to embark on a captivating journey.
Consequently, as per the analysis, technology is transforming the beach hotels industry, and hotels that embrace technological innovation are better poised to thrive in the competitive marketplace.
Key Restraints :
Higher operational and maintenance costs of beach hotels are limiting the market
High operational costs and maintenance are posing a major challenge to the market. Beachfront property is often expensive leading to higher land and building costs compared to inland hotels. Additionally, These hotels are heavily reliant on good weather which leads to fluctuations in occupancy throughout the year. Moreover, constant exposure to salt, sand and intense sun causes rapid deterioration of buildings, furniture and equipment. This necessitates constant keep-up and repairs to maintain guest safety and the aesthetic appeal of hotels. Furthermore, as per the analysis, These hotels are vulnerable to natural disasters such as hurricanes, tsunamis and flooding. These events cause significant damage to hotels and their infrastructure and also deter some tourists from visiting. As a result, owing to the above-mentioned factors operation and maintenance costs of these hotels increase which are restraining the market trends.
Future Opportunities :
The trend of sustainability and eco-tourism is expected to propel the market in upcoming years
The demand for a more sustainable environment in tourism has motivated the increase in eco-tourism. Eco-tourism aims to promote sustainable practices and connect with the local environment to attract eco-conscious guests. Travellers are becoming more conscious of their environmental impact, leading to a rise in eco-friendly beach hotels that prioritize sustainable practices and responsible tourism. These customers may be drawn to beach hotels that encourage eco-friendly measures.
Moreover, the initiatives taken by tourism organizations are expected to push market trends over the upcoming years.
For instance,
- In October 2023, the World Travel & Tourism Council (WTTC) and the Global Sustainable Tourism Council (GSTC) announced a major new partnership. The partnership aims to establish a structured framework for hotel sustainability, leading to GSTC Certification. The partnership endorses the existing WTTC Hotel Sustainability Basics whilst paving the way for a stepped progression toward GSTC Certification for sustainable hotels.
As a result, as per the analysis, the partnership between tourism organisations to promote sustainability is expected to create lucrative opportunities and trends for market.
Beach Hotels Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2018-2031 |
| Market Size in 2031 | USD 218.16 Billion |
| CAGR (2024-2031) | 4.5% |
| By Type | Standard and Luxury |
| By Service Type | Accommodation, All-inclusive, Food Services, Events, and Others |
| By Booking Channel | Offline Booking and Online Booking |
| By Region | North America, Europe, Asia Pacific, Latin America, and Middle East & Africa |
| Key Players | Wyndham Hotel Group, LLC., IHG, Marriott International Inc., Belmond Management Limited, Accor, Hilton Worldwide Holdings Inc., Hyatt Hotels Corp., Mandarin Oriental Hotel Group Limited, Royal Cliff Hotels Group, and JUMEIRAH INTERNATIONAL LLC |
| Geographies Covered | |
| North America | U.S. Canada Mexico |
| Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
| APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
| Middle East and Africa | GCC Turkey South Africa Rest of MEA |
| LATAM | Brazil Argentina Chile Rest of LATAM |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, Restraint or Challenges, Opportunities, Environment & Regulatory Landscape, PESTLE Analysis, PORTER Analysis, Key Technology Landscape, Value Chain Analysis, Cost Analysis, and Regional Trends & Forecast |
Beach Hotels Market Segmental Analysis :
Based on the Type :
The type segment is categorized into standard and premium. In 2023, the standard segment accounted for the highest market share in the overall beach hotels market, and it is also expected to hold the fastest CAGR over the forecast period. Standard hotels are the most preferred lodging options among consumers worldwide, as they offer adequate services and amenities at reasonable prices. They provide a comfortable vacation experience, with essential comfort elements that meet the core requirements of travellers without compromising their financial resources. Compared to luxury or premium hotels, standard hotels cater to a wider range of travellers seeking good value for money. Furthermore, they occupy a middle ground between basic budget accommodations and extravagant luxury experiences. This enables them to cater to guests who seek a balance between comfort and affordability. Standard hotels consistently enjoy higher occupancy rates compared to luxury hotels, which attract clientele with specific preferences. The former has less need for extravagant facilities, reducing operational costs, and making the business model more manageable and potentially less vulnerable to economic downturns. Standard hotels are geared towards fulfilling the basic needs of their guests, providing the necessary comforts without compromising quality. As per the analysis, this results in a broad appeal, which attracts a diverse clientele seeking a comfortable vacation experience without breaking the bank.
Moreover, the new beach hotel launches providing standard facilities are expected to propel the segment.
For instance,
- In December 2023, Accor announced the launch of Ibis Styles Resort Maragogi in the paradise of Maragogi, Brazil, in the Alagoas region. The first Ibis Styles Resort in Brazil is designed as a modern beachfront hotel, with creative decoration, inspired activities, and an ideal location right on the sand. Guests will experience a new style of the resort at an attractive price that invites a wide range of travellers. Families and friend groups will adore the hotel's dynamic environment, paying only for what is convenient for them to consume.
As a result, the benefits provided by standard beach hotels and the launches are expected to propel the segment expansion and trends shortly.
Based on the Service Type :
The service type is categorized into accommodation, all-inclusive, food services, events, and others. In 2023, the accommodation segment accounted for the highest beach hotels market share of 31.05% in the beach hotels market. Accommodation hotels specialize in providing comfortable lodging, where guests pay separately for meals and other services. This segment is experiencing growing trends due to the increasing disposable income, the booming travel sector, and the diversification of accommodation options. Additionally, as per the analysis, the availability of online booking platforms has made it easier for travellers to find and compare accommodation options, boosting booking rates and market reach for accommodation providers. Moreover, staycation packages provided by many companies to attract domestic travellers are boosting the segment.
Moreover, the food services segment is expected to hold the fastest CAGR over the forecast period. Food service is an integral part of any tourist place. The significant trends in the food service sector are expected to contribute to the phenomenal development of the segment.
For instance,
- According to the data provided by the National Restaurant Association of India in December 2022, India's food services market is likely to project robust development with an impressive CAGR of 11.19 per cent and reach USD 79.65 billion by 2028.
Thus, the escalating food service sector is expected to boost the segment expansion.
Based on the Booking Channel :
The booking channel is categorized into offline and online. In 2023, the online segment accounted for the highest market share in the beach hotels market and it is also expected to hold the fastest CAGR over the forecast period. The hospitality sector has been transformed by the advent of online booking, which offers numerous advantages for both travellers and hotels. Online booking is convenient for travellers, as it is accessible 24/7 from anywhere and is quick. Additionally, online booking enables guests to compare prices, amenities, and other services, thereby simplifying the planning process. Additionally, online platforms also showcase a wide range of accommodation options, from budget hotels to luxurious resorts, catering to diverse preferences and budgets.
Moreover, the increasing adoption of online platforms by leading companies is expected to propel the segment's growth.
For instance,
- In September 2023, IHG Hotels & Resorts, a global leader in next-gen cloud solutions and one of the world's largest hotel companies, announced the launch of a reimagined digital booking experience for its guests. By leveraging the power of cloud-based platforms, IHG is transforming the hospitality secto by providing a smarter, easier, and faster way for guests to book and personalize their stays.
Consequently, the efforts taken by leading companies to enhance guest engagement through online bookings are expected to create new opportunities and trends for the segment in upcoming years.
Based on the Region :
The regional segment includes North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
In 2022, North America accounted for the highest market share at 39.15% valued at USD 159.86 Billion in 2023, it is expected to reach USD 218.16 Billion in 2031. In North America, the U.S. accounted for a major market share of 64.25 % in the year 2022. As per the beach hotels market analysis, the North America region is growing owing to the presence of vast and diverse coastal lines across the region. The region boasts an extensive coastal line spanning the Atlantic, Pacific, Gulf of Mexico and Great Lakes offering a range of beach experiences. Additionally, North America possess a well-established, strong travel and tourism sector which is driving the beach hotels market growth.
Furthermore, the Europe region is expected to witness significant growth over the forecast period, growing at a CAGR of 5.2% during 2023-2031. Rising disposable income and improving standards of living are expected to propel the market growth in Europe. Additionally, the significant growth in the travel and tourism sector across the region is expected to increase the demand for the hospitality industry across the region.
For instance,
- In 2021, the travel & tourism industry's contribution to the GDP was USD 178 billion; this is expected to reach USD 512 billion by 2028. Additionally, the travel market in India is projected to reach USD 125 billion by FY27 from USD 75 billion in FY20.
Thus, these above-mentioned factors are collectively driving the demand for beach hotels and creating lucrativea beach hotels market opportunities in the Asia Pacific region.
Top Key Players & Market Share Insights :
The global beach hotels market is highly competitive, with several large players and numerous small and medium-sized enterprises. These companies have strong research and development capabilities and a strong presence in the market through their extensive product portfolios and distribution networks. The market is characterized by intense competition, with companies focusing on expanding their product offerings and increasing their market through mergers, acquisitions, and partnerships. The key players in the market include-
The key players in the market include-
- Wyndham Hotel Group, LLC.
- IHG
- Belmond Management Limited
- Hilton Worldwide Holdings Inc.
- Hyatt Hotels Corp.
- Marriott International Inc
- Accor
- Mandarin Oriental Hotel Group Limited
- Royal Cliff Hotels Group
- JUMEIRAH INTERNATIONAL LLC
Recent Industry Developments :
- In December 2023, Accor announced the launch of Ibis Styles Resort Maragogi in the paradise of Maragogi, Brazil, in the Alagoas region. The first Ibis Styles Resort in Brazil is designed as a modern beachfront hotel, with creative decoration, inspired activities, and an ideal location right on the sand. Guests will experience a new style of the resort at an attractive price that invites a wide range of travellers. Families and friend groups will adore the hotel's dynamic environment, paying only for what is convenient for them to consume.
- In December 2023, Jumeirah Group, the luxury hospitality company and member of Dubai Holding, announced plans to double the size of its portfolio by 2030, building on its strength in the UAE and further expanding its portfolio into key global markets. Sustainability is an integral aspect of Mission 2030 under the Group's three pillars: Planet, People and Governance. With a focus on decarbonisation of operations, eco-conscious building design, strong governance of supply chain, diversity and inclusion, Jumeirah is especially committed to preserving biodiversity given the location of its hotels in fragile ecosystems.
Key Questions Answered in the Report
What was the market size of the beach hotels market in 2023? +
In 2023, the market size of beach hotels was USD 159.86 billion.
What will be the potential market valuation for the beach hotels industry by 2031? +
In 2031, the market size of beach hotels will be expected to reach USD 218.16 billion.
What are the key factors driving the growth of the beach hotels market? +
A surge in travel and tourism is contributing to the phenomenal market growth. Technological advancements are fostering significant market growth.
What is the dominant segment in the beach hotels market for the type? +
In 2023, the standard segment accounted for the highest market share in the overall beach hotels market.
Based on current market trends and future predictions, which geographical region is the dominating region in the Beach Hotels market? +
North America accounted for the highest market share in the overall market.
