Hospitality Industry statistics to have on your radar in 2022
The hospitality industry is a vast sector with many different categories that include recreation, lodging, entertainment, food and beverage. As a result, it is essential to collect all the relevant hospitality industry statistics to fine-tune your digital and social strategies to match the rapid changes currently impacting the sector. This is especially important for hospitality because it was one of the hardest-hit industries by COVID-19, and its challenges are still ongoing.
Now that things are almost back to normal, the hospitality industry not only has to deal with changing consumer preferences and expectations but also deal with vacant job positions. Despite being an exhilarating career path with many avenues which demand a diverse skill-set, the hospitality industry is currently finding it hard to fill open positions. This is partly due to the changing nature of jobs and employee expectations.
A good way of dealing with these challenges is to ensure you understand the latest hospitality statistics and leveraging them in order to create an effective and efficient strategy. But which hospitality statistics do you need and how do you get them?
In this article, EHL Insights have compiled a few hospitality statistics and data you need to know in 2022. You will be able to use them to drive innovation, delight customers and capture value.
Numbers to take your business to the next level
Trends in the hospitality industry have always been in a state of flux because client demands are always shifting. But the pandemic completely derailed them. As things start going back to normal, the hospitality industry is once again growing worldwide. But several things have been permanently changed by the pandemic.
Understanding hospitality industry statistics allows you to properly equip yourself to handle your changed client needs for your business to grow rapidly in this new environment. They will help you know what you need to do to succeed and come up with strategies to take your business to the next level.
Current state of the Hospitality Industry
The general statistics below will give you an idea of the current state of the hospitality industry and generally show you its projected future.
- The demand for hotel rooms and revenues are projected to reach pre-pandemic levels in 2022. Revenues are projected to reach $168 billion and occupancy to reach 63.4%. (AHLA)
- Hotel occupancy is expected to rise, averaging 63.4% for the year. STR and Tourism Economics.
- 58.3% of meetings and events will return in 2022, and 86.9% will return by 2023. (Knowland)
- The most significant trends in the hotel market are the use of near-field communication (NFC) technology, infrared technologies, and robots. (Hospitality Global Market Report 2022)
The industry anticipates a steady growth rate
Industries such as hospitality, which were affected by COVID-19 safety measures, are seeing some impressive growth rates now that the restrictions are being relaxed worldwide. The statistics below indicate just how impressive the current and future growth rates are.
- In February 2022, the accommodation and food services industry grew 8.6%. It primarily grew due to the growth of accommodation, which grew by 23% compared to December 2021. (ONS)
- Takeaway sales and deliveries increased by 138% between January 2022 and January 2019. (UKH)
- The global hospitality market is expected to grow from $3,952.87 billion in 2021 to $4,548.42 billion in 2022 at a compound annual growth rate (CAGR) of 15.1% due to the removal of restrictive COVID-19 measures. It is expected to reach $6,715.27 billion in 2026 at a CAGR of 10.2%. (Hospitality Global market report 2022)
Growth trends in specific areas
Due to changes in consumer expectations, preferences and the rapid advancement of technology (among other factors), some areas in the hospitality industry are seeing a bigger growth rate than others. The statistics below shed light on these areas.
- More people are traveling for bleisure—business+leisure trips. The bleisure tourism market is projected to reach $ 497.5 billion in valuation in 2022. Sales will grow at 19.5% CAGR. (Future Market Insights report)
- 57% of companies allow employees to extend business trips as part of their policies. (Future Market Insights report)
- The global health and wellness market has reached a market evaluation of $1.5 trillion and growing at a rate of 5-10% per year. (McKinsey)
Key stakeholders' market share and consumer influence
Similar to the different growth rates in different areas in the same hospitality industry, not all players in the industry saw the same changes or are seeing the same growth rate. This is due to size, services, products and way of doing business. The statistics below highlight these differences.
- Airbnb revenues increased by 76.6% from 2020 to $48.9 billion. (All the Rooms)
- The average Airbnb occupancy rate globally in 2020 was 17.4%. (All the Rooms)
- Booking.com is the most valuable travel and tourism brand in the world, with a brand value of $8.9B. (Hotel Tech Report)
- Hilton is the most valuable hotel brand in the world, with a brand value of $7.6B in 2021, although the Wyndam group has the most properties. (Hotel Tech Report)
- 2,246 hotels were opened in 2021, which will grow to 2,805 in 2022 and 2,934 in 2023. (Statista)
Jobs & employment in Hospitality & Leisure
It goes without saying that as travel died down during the pandemic, so did jobs in the hospitality industry. How are they now that travel restrictions are being removed? When should we expect a full recovery? The statistics answer these questions best.
- According to a survey, 94% of hotels are understaffed and 47% are severely understaffed. 96% of the hotels say they are trying to hire but aren't able to fill the open positions. (October 2021 AHLA member survey)
- Hotels will struggle with staffing shortages until 2025 when the industry is expected to make a true adjusted recovery. (STR and Tourism Economics)
- By the start of 2023, employment in hotels is expected to reach 93% of pre-pandemic levels. (AHLA)
Travel & Tourism
2021 set the travel industry on the road to recovery following the pandemic slump. As of now, despite several changes, the travel and tourism industry shows lots of promise and continues to grow.
To better understand the current changes and future of travel and tourism, we have compiled the statistics below.
General Travel & Tourism industry statistics
The general travel and tourism statistics below show the current and future state of the travel and tourism sector as a whole.
- In 2019, commercial travel made up 52.5% of industry room revenue and in 2022 it is projected only to represent 43.6%. (Analysis for AHLA from Kalibri Labs)
- Leisure hotel spending will continue to be higher than business travel (Analysis for AHLA from Kalibri Labs). Hotels will have to switch from being primarily focused on business customer needs to focus on leisure travelers.
- A study of global business travelers found that 89% wanted to add a private holiday to their business trips in the next twelve months. (Stephanie Diamond)
Growth trends in specific areas
The growth of the travel and tourism sector has been influenced by several factors including ease of access to information, an increase in the amount of paid leave, and rapid urbanization among others. Despite the pandemic slump, the industry is now doing well and is projected to do even better over the next few years, as indicated by the following statistics.
- A 228% increase in spending by international travelers in the US is expected compared to 2021. (World Travel & Tourism Council)
- SMEs will lead the way in business travel's recovery in 2022. (Business Travel News, CoStar)
- The top 5 fastest growing spring travel destinations are: Honolulu, Hawaii; Paris, France; Lahaina, Hawaii; London, United Kingdom; Rome, Italy (Trip Advisor)
Domestic vs. international travel
The pandemic reduced the desire to travel to foreign lands and raised the interest in domestic travel and tourism, among other changes. The statistics below help to better understand the "new traveler".
- International travelers accounted for 15% of total U.S. travel spending in 2019 before the pandemic began, but just 6% in 2020. (WTTC)
- In 2022, demand for domestic flights is expected to reach 93% of pre-crisis (2019) levels (IATA)
- Global business travel will fully recover by 2024. It is forecast to increase by 14% in 2022, with the US and China seeing the largest growth (30% each). (Leslie Josephs)
Air, cruise & ground transport
The widespread adoption of the internet as a source of information, the ease of mobility and increased awareness of new destinations have brought significant changes to how consumers travel. The statistics below show how much travel has changed and what to expect.
- 528,070 domestically operated flights in the US in January 2022, an increase from the 375,229 flights operated in January 2021. (Bureau of Transportation Services)
- The global rail tourism market is expected to grow from $227.21 billion in 2021 to $251 billion in 2022. (PRN News)
- According to some travel experts, fly-to-the-meeting and fly-back-from-the-meeting day trips will stop being popular as more people prefer multi-day bleisure trips. (SAP Concur Study of Global Business Traveler)
Jobs & employment in Travel & Tourism
As it was with all other sectors and industries, the travel and tourism sector saw a rise in unemployment during and immediately after the pandemic. At the moment, although some changes are irreversible, things are looking up, as the following statistics indicate.
- According to the US Bureau of Labor Statistics, travel and tourism industry unemployment rates decreased from 6.7% in December 2021 to 5.9% in March 2022. (Bureau of Labor Statistics)
- There were 19% of job losses in the travel and tourism industry in February 2020 and 48% in April. In January 2022, job losses were 10%. (US Travel Association)
- Candidates for these open positions have different expectations and priorities compared to those before the pandemic. They expect flexible working arrangements, skills training, and diversity and inclusion. Hotels will have to adapt to fill open positions. (AHLA)
Demographic statistics: Who's travelling in 2022?
Different population segments play different roles in the travel and tourism industry. To fine-tune your social and digital strategies, you have to know what role each population group plays in the travel and tourism industry. Here are a few stats that show where you should focus your strategies.
- 66% of millennials book their trips using a smartphone while 74% use their mobile for travel-related research. (Condor Ferries)
- 74% of millennial travelers have stayed in a rental property while on a business trip compared to 38% of Generation X travelers and 20% of baby boomers. 44% of millennials stated they preferred staying in Airbnb-style rentals while traveling for work. (Hipmunk)
- Gen X travelers are the most likely to splurge on a high-end restaurant (18%, compared to 16% overall) (Expedia)
- Boomers plan to spend the most of any generation: at least $4,000 on travel in the next 12 months (MMGY)
Hospitality & Travel businesses need to adapt to win
The hospitality industry and all its sectors have irreversibly changed. Apart from the changing consumer preferences and expectations, vacant positions are harder to fill compared to before the pandemic. The only businesses in the hospitality industry that win in this changing world are those that adapt. The above statistics should set you up on a path to success based on data.
Found the statistics insightful? If this has been helpful you can check out our other hospitality resources and learn how to delight your customers and drive value. Or if you're interested in upskilling yourself or your team, have a look at what EHL has to offer.
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