The boutique hotel market value is estimated to expand at a CAGR of 6.9% over the assessment period. In 2024, the market is expected to generate a revenue worth USD 9,962.60 million. By 2034-end, the market size is forecast to expand to USD 19,415.50 million.
| Attributes | Key Insights |
|---|---|
| Estimated Boutique Hotel Market Size (2024E) | USD 9,962.60 million |
| Projected Boutique Hotel Market Valuation (2034F) | USD 19,415.50 million |
| Value-based CAGR (2024 to 2034) | 6.9% |
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| Leading Tour Type | Package Traveler |
|---|---|
| Value Share (2024) | 51.30% |
Package travelers contribute massively to the revenue generation in the boutique hotel sector. A growing segment of customers who appreciate personalized service, unique experiences, and stylish accommodations are contributing to the growth of this segment. Packaged tours offer itineraries that emphasize cultural experiences, curated activities, and off-the-beaten-path destinations to attract guests seeking a boutique hotel experience.
Packaged tours also combine accommodation, bundle flights, and activities at a discounted rate as opposed to booking separately, thus appealing to value-conscious price sensitive customers.
| Leading Booking Channel | Online Booking |
|---|---|
| Value Share (2024) | 46.50% |
Based on the latest estimates by our analysts, the online booking segment is anticipated to acquire a massive market hold. This segment is driven by the widespread use of Internet services and mobile phones, through which the customer can fetch information regarding industries and make decisions for their next tourist destination point.
Even service providers think that marketing and promotion of their services attract a lot of customers. Further, the online booking channel provides unparalleled convenience to customers, boosting its growth size.
Principal Consultant
| Countries | Forecast CAGR (2024 to 2034) |
|---|---|
| United States | 5.30% |
| Canada | 7.20% |
| Spain | 6.60% |
| China | 7.80% |
| India | 8.40% |
Industry participants in the United States boutique hotel industry are aiming for further growth over the next decade. As per recent estimates by our analysts, the market in the United States is estimated to register a CAGR of 5.30% through 2034.
The United States attracts a lot of tourists and travelers from across the world. This is giving momentum to the expansion of boutique hotels across the country. Sonder is a good case in point.
This tech-driven hospitality company raised USD 529.6 million to meet the demands of a global, nomadic workforce, who have gained higher mobility in the post-pandemic world. Enterprises in the industry are braving the environmental challenges faced by the country by partnering with committed conservation charities.
For future growth, leading players are forging exclusive strategic partnerships to expand their portfolio. For instance, in February 2024, Hilton collaborated with Small Luxury Hotels of the World (SLH) to welcome Hilton guests to independently-minded luxury hotels situated in sought-after destinations.
The boutique hotel sector in Canada is forecasted to expand at a CAGR of 7.20% through 2034. This category of hotels is increasingly preferred among today’s travelers due to many reasons, including their one-of-a-kind atmosphere.
One of the expansive metropolis cities in Canada, Toronto, is famous for its ensemble of boutique hotels that are situated all across its eclectic neighborhoods, giving travelers a perfect place to rest after a day of exploration.
Players in the industry are investing in smart-room experiences to attract high-end customers. In June 2023, INTELITY®, partnered with The Hazelton Hotel, a singular Forbes Five-Star luxury boutique hotel, in Toronto. The hotel has integrated the INTELITY platform to provide its guests with a modern and digital, smart-room experience.
The vibrant country of Spain is expected to experience a CAGR of 6.60% in its boutique hotel industry. Owners of boutique hotels are listing their properties on travel sites to increase visibility and trust among potential guests.
These sites promote touristic service providers by offering hotel reviews, guest ratings, special offers, and online bookings. Customers seeking an immersive experience of rich culture compare prices from a variety of boutique accommodations listed on these sites to book their stays.
Growing tourist attractions in Spain and aggressive promotion of the hospitality industry to stimulate economic activity within the country are fueling the boutique hotel expansion. Recently, Amancio Ortega, Zara founder, purchased two boutique hotels in Spain.
This sector is expected to unfold many opportunities for its investors and key players as customers are captivated by the distinct experiences of boutique hotels.
The boutique hotel sector in India is projected by our analysts to expand at a CAGR of 8.40% over the forecast period. Stakeholders and investors are eyeing India for their expansion due to the growing consumer appetite for boutique hotel experiences.
In November 2023, Relais & Châteaux, a luxury boutique hotel association, is considering expanding in India to cater to domestic as well as international tourists. Every part of the guest experience, be its wine list, food, bathroom, amenities, or service, will be given special focus to reflect consistency.
Growth in boutique hotel admirers in China is expected to fuel the market to develop at a CAGR of 7.80%. Demand for boutique hotels is projected to remain strong over the forecast period owing to increasing preferences for unique and personal luxury experiences among the middle-class section. By opting for boutique hotels, they get personalized service instead of the standardized service of conventional luxury hotels.
A key factor that is attracting investments in boutique hotels is their profitability potential. Boutique hotels require less upfront costs as opposed to large hotels, can ask for higher room rates owing to their exclusivity, and don’t require extensive amenities like ballrooms.
Players are expected to thoughtfully design boutique hotels to capture the growing customer segment of aesthetic admirers.
Market participants in the boutique hotel industry are honing their USP by focusing on certain key aspects that differentiate them from their competitors. This includes curating and creating themed experiences customized to guest requirements. Common guest’ requests observed over the years include pet-friendly havens and art-centric hotels.
Stakeholders are investing in technology to predict guest needs and offer bespoke experiences. Additionally, they are pairing up with local businesses to create a win-win situation for both of them. Boutique hotels partner with local shops, restaurants, and attractions to provide exclusive experiences and benefit the local community.
Key players are leveraging social media marketing to display their distinct offerings and engage with potential guests. With growing concerns for the environment, a segment of eco-conscious travelers is emerging. Key players are targeting them by introducing sustainable practices to limit their environmental impact.
Recent Advancements Made in the Boutique Hotel Market:
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For 2024, the boutique hotel market is estimated to be valued at USD 9,962.60 million.
The adoption rate of boutique hotels is calculated to be around 6.9% during the forecast period.
The boutique hotel market revenue is expected to shoot up to USD 19,415.50 million by 2034.
Package traveler tour type is extensively opted for by customers of boutique hotels.
India is offering significant growth opportunities to boutique hotel businesses.
Nine Hours, Container Hotels, and Tubohotel are influential players in the boutique hotel industry.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2019 to 2023 and Forecast, 2024 to 2034 5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Hotel Type 5.1. Business Hotels 5.2. Suite Hotels 5.3. Airport Hotels 5.4. Resorts Hotels 5.5. Others 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Booking Channel 6.1. Phone Booking 6.2. Online Booking 6.3. In Person Booking 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Tourist Type 7.1. Domestic Tourist 7.2. International Tourist 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Tour Type 8.1. Independent Traveller 8.2. Package Traveller 8.3. Tour Group 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Consumer Orientation 9.1. Men 9.2. Women 10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Age Group 10.1. 15-25 Years 10.2. 26-35 Years 10.3. 36-45 Years 10.4. 46-55 Years 10.5. 56-65 Years 10.6. 66-75 Years 10.7. Above 75 Years 11. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 11.1. North America 11.2. Latin America 11.3. Western Europe 11.4. Eastern Europe 11.5. South Asia and Pacific 11.6. East Asia 11.7. Middle East and Africa 12. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 13. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 14. Western Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 15. Eastern Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 16. South Asia and Pacific Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 17. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 18. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 19. Key Countries Market Analysis 20. Market Structure Analysis 21. Competition Analysis 21.1. Farmhouse Inn 21.2. Jumeirah International LLC 21.3. Triple Creek Inn 21.4. ITC Hotels Limited 21.5. Four Seasons Holdings Inc. 21.6. InterContinental Hotels Group PLC 21.7. Ashford Castle Co. 21.8. Marriott International, Inc. 21.9. Hyatt Hotels 21.10. Shangri-La International Hotel Management Ltd. 21.11. Wickaninnish Inn 22. Assumptions & Acronyms Used 23. Research Methodology
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Boutique Hotel Market
