Travel Accommodation Industry: Understanding Consumer Preferences & Evolving Landscapes

Written By: Harshada Dive

Consumers, whether tourists or business travelers are away from home for varying periods of time.  The demand for accommodations is based on the main purpose of the trip, which may be taking a seaside holiday, visiting friends, attending conferences, or making a sales promotion.  The main focus of this article will specialize in the aspect of travel accommodations, as they are an integral part of the broader travel and tourism industry.

Travel accommodations play an important role in the overall travel experience and provide tourists with a comfortable and secure environment to rest and refresh.  According to a recent report published by Allied Market Research, the global travel accommodation market is projected to exhibit a noteworthy CAGR of 11.3% from 2022 to 2031.  The benefits of travel accommodations include providing tourists with a safe personal space and often include amenities such as Wi-Fi, room service, and entertainment facilities that enhance comfort and leisure.  

Types of accommodation

There are different types of travel accommodation to include:

Motels 

The motel usually has a choice of studio, one or two bedrooms. Tea, coffee, and sometimes cooking facilities are available, and most accommodation has a TV. Very affordable motels are ideal for budget travelers who appreciate hotel accommodations. Larger motels can be similar to hotels, often equipped with a swimming pool, a spa, a sauna, laundry, and a restaurant. 

Hotels 

The hotel provides private service rooms for guests. It ranges from a very basic budget style to very luxurious accommodations.  

Bed and Breakfasts (B&Bs) and Guesthouses

Bed and breakfasts (B&Bs) and guesthouses offer hotel-style accommodation. However, they are usually smaller residences where tourists interact with their hosts and other guests, often dining together and sharing public spaces. Bed and breakfasts (B&Bs) and guesthouses can be found both inside and outside the main centers and, in many circumstances, add a bit of a different feel to the stay.  

Homestays 

A home exchange, or homestay network, is an organization that connects travelers with the residents of the cities they visit. If the traveler connects with the right people at the right time, he or she can get space at the destination and occasionally receives free or a deep discount for it.  

Farm stays 

Accommodation in a farmhouse is a unique option if a tourist wants to experience a traditional, authentic farm life.   A farm stay is very similar to a stay at a bed and breakfast with a few extras.  A farm stay will generally incorporate the individual to make them feel like part of a farm family.  This type of stay is ideal for traveling with friends or children.  

Villas

Travelers who wish to get away from everything and relax with their families in peace should consider renting a holiday villa. These private villas typically include a kitchen, living/dining area, bedroom, and, in some cases, a swimming pool. Not only does renting a villa provide more space and privacy, but it is also a cheaper alternative compared to staying in a hotel room. Generally, villas can accommodate a minimum of four people, and rental costs are charged per week, making it a more cost-effective option.

Boutiques and Lodges

Choose from a variety of accommodations, such as historic mansions, vineyard cottages, or boutique guest houses that offer unique amenities, locations, and services. In this type of stay, you can wake up to a beautiful freshwater lake or breathtaking alpine scenery. The boutique and lodge accommodation type can be a treat for one night or an entire holiday and can provide travelers with options according to their preferences and requirements during travel. 

Recent trends in the travel accommodation industry: 

The trend of international travel and tourism is steadily increasing. 

The global accommodation market is boosted by an increasing trend of international travel and tourism. This is mainly because of the developing middle-class population around the world and the improvement of transport networks, making cross-border transport easier. As disposable income increases, more and more people are looking for different experiences and to explore new destinations. This leads to the demand for different types of accommodations, from budget accommodation to luxury resorts. In addition, the flow of tourists increases the development of new housing, which stimulates the growth of the market.  

Growth of online booking platforms and mobile applications 

The widespread use of digital technology has made it easier to research, plan, and book international trips. With a wide variety of alternatives at their fingertips, travelers can easily browse an extensive range of accommodations, from hotels to pleasure trip rentals. The convenience and transparency offered by digital platforms enable travelers to make informed decisions and promote healthy competition between accommodation providers. In addition, online travel agencies, travel websites, reviews, and recommendations make it easy for travelers to research and choose a destination. This factor not only simplifies the booking process but also enhances the visibility of different accommodation establishments, thus accelerating the growth of the market in a technological era.  

Changing consumer preferences for unique and personalized experiences 

In view of changing consumer preferences, the travel accommodation market has changed significantly to a unique and personalized experience. Modern travelers are increasingly looking for accommodation that satisfies their specific needs and preferences. As a result, boutique hotels, homestays, and lodges offer a unique environment and local flavors. The alternatives to traditional hotels are intended for travelers who wish to have real and immersive experiences. Because of the personalized service demand, local cuisine, and cultural enrichment; accommodation providers have been forced to diversify their services. As a result, creative and innovative accommodation concepts have emerged on the market, which not only meet different preferences but also contribute to the overall growth and development of the industry.  

Airbnb partners with the Indian Tourism Ministry to promote cultural tourism and heritage stays  

In June 2023, Airbnb declared that it had signed a MoU with the Union Minister of Tourism, a subsidiary of the Indian Government, to encourage cultural tourism and emphasize India’s cultural heritage. This is part of the ‘Visit India 2023′ initiative, in which Airbnb will collaborate with the Ministry in the pursuit of its vision to encourage inbound tourism. Furthermore, according to the MoU, Airbnb will launch a dedicated “Soul of India” microsite for global audiences to explore India’s rich cultural and built heritage. 

In addition, Airbnb supports hosts in untapped tourist areas by helping them promote their homestays, building hosting capacity, and promoting responsible hosting culture.  

According to the Memorandum of Understanding (MoU), Airbnb will focus on training hospitality micro-entrepreneurs in new destinations that are included in the Ministry’s flagship program and will share travel and homestay information with the Ministry to inform responsible training requirements and tourism policies. 

The Union Tourism Minister, G Kishan Reddy stated that Airbnb’s global reach will enhance the visibility of India’s unique and varied accommodation options, thus enabling tourists to gain a firsthand understanding of the country’s rich history.

“This partnership will drive growth in inbound tourism to the country, create economic opportunities for local communities, and uniquely position India on the global travel book,” he added.  

Airbnb General Manager – India, Amanpreet Bajaj said, “This MoU represents an important collaboration towards unlocking social benefits and new economic opportunities through tourism in India while strengthening the Incredible India brand and bringing the richness of what India has to offer to even more global travelers.”    

Recent developments in the global travel accommodation Industry- 

Prominent players in the industry have used innovative strategies such as new partnerships, technological advances, and joint ventures to strengthen their position in the industry. For example, in January 2023, Accor, the world’s leading hospitality company with more than 430 hotels in India, the Middle East, Africa, and Turkey, continued to expand luxury hotels in India. Accor has expanded the portfolio of Fairmont Hotels & Resorts in India by signing Fairmont Shimla Fagu.

Another significant development in August 2021, Hyatt Hotels Corporation announced the opening of Hyatt Place Vijayawada in Andhra Pradesh, marking an important milestone in the growth of the Hyatt brand in the market.  

Additionally, in February 2022, OYO collaborated with the Government of Jammu & Kashmir to launch the rural tourism initiative “Crown of Incredible India” to promote the tourism industry. OYO also joined forces with the Central Government’s Mission Youth program to open homestays in 75 villages as part of this initiative.

Furthermore, InterGlobe Air Transport Ltd. (IGAT), a company that specializes in airline and travel management, entered a partnership with Bedsonline in February 2022. This partnership will enable Bedsonline to expand its presence in the Indian market through IGAT’s extensive travel distribution network and corporate customer base. Additionally, IGAT will be expanding its current activities and entering a new category of hotel booking. 

To summarize, the travel accommodation market is constantly evolving and offers a wide range of options adapted to the needs, preferences, and budgets of travelers. From luxurious accommodations to cozy guesthouses and budget-friendly options, there are endless possibilities to find the perfect home away from home.  Travel Till you Drop.

Author’s Bio: Harshada Dive is a computer engineer by qualification. She has worked as a customer service associate for several years. As an Associate Content Writer, she loves to experiment with trending topics and develop her unique writing skills. When Harshada’s not writing, she likes gardening and listening to motivational podcasts.