The United Kingdom’s alternative accommodation market is experiencing remarkable growth, with a compound annual growth rate (CAGR) of 15.4%. This surge reflects a significant shift in consumer preferences, driven by a growing demand for unique and personalized travel experiences. Platforms offering vacation rentals, serviced apartments, and boutique hostels are becoming increasingly popular among both leisure and business travelers. Factors such as the rise of remote work and a desire for flexible travel options further contribute to this trend, as more individuals seek accommodations that provide both comfort and convenience.
The alternative accommodation market is poised for substantial growth, anticipated to flourish at a steady Compound Annual Growth Rate (CAGR) of 14.7% from 2023 to 2033. The market is projected to reach a staggering value of USD 627.8 billion by 2033, up from USD 159.3 billion in 2023. This growth is largely attributed to advancements in technology and a growing consumer interest in exploring new destinations and affordable travel options.
Key Factors Driving the Growth of the Alternative Accommodation Market
- Robust Market Growth: Projected CAGR of 14.7% from 2023 to 2033, with market size increasing from USD 159.3 billion in 2023 to USD 627.8 billion by 2033.
- Consumer Spending Power: Increased disposable incomes allow travelers to invest in diverse and unique accommodation experiences.
- Technological Advancements: Enhanced mobile-friendly booking platforms and travel management software simplify the process of finding and securing accommodations.
- Diverse Accommodation Options: Availability of various lodging types (apartments, hostels, guesthouses, etc.) caters to different budgets and preferences.
- Sustainability Trends: Alternative accommodations often promote sustainable practices, appealing to environmentally conscious travelers.
- Online Booking Convenience: The online/platform-based booking segment remains prominent, driven by the ease of digital transactions and mobile accessibility.
Recent updates from the industry are
- In May 2022 – Online travel firm MakeMyTrip partnered with 15 banks, NBFCs, and fintech players, including HDFC Bank, IDFC Bank, Capital float, and Zest Money, for its ‘book now pay later option while booking flights or hotels.
- In October 2021 – MakeMyTrip Limitedannounced its partnership with Hopper to help travelers save money with personalized recommendations and flexible booking capabilities. Through this partnership, MakeMyTrip aims to enhance the flight booking experience by boosting its recently launched Price Lock feature. Moreover, Hopper’s Price Freeze technology may power MakeMyTrip’s Price Lock feature and enable customers to lock in flight fares for up to seven days while they are firming up their travel plans.
Key Players
- holidu.co.uk
- Trivago
- Airbnb, Inc.
- Booking.com
- VRBO (Expedia Group)
- MakeMyTrip Limited
- Wyndham Destinations Inc.
- HomeToGo
- Peakah
- Trip.com Group Limited
- TripAdvisor, Inc
Tap into Expertise: Discuss with Our Analyst on Email: sales@futuremarketinsights.com
Key Segments Covered
By Accommodation Type:
- Homes
- Apartments/Condominiums
- Alternative Accommodation & Camping
- Hostels
- Others
By Booking Mode:
- Offline Alternative Accommodation Booking
- Online/Platform-Based Alternative Accommodation Booking
Key Regions Covered:
- North America
- United States
- Canada
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Europe
- Germany
- United Kingdom
- France
- Spain
- Russia
- Rest of Europe
- Japan
- Asia Pacific Excluding Japan
- China
- India
- Malaysia
- Singapore
- Australia
- Rest of Asia Pacific Excluding Japan (APEJ)
- The Middle East and Africa
- GCC Countries
- Israel
- South Africa
- Middle East and Africa (MEA)
About Future Market Insights (FMI)
Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
Contact Us:
Future Market Insights Inc.
Christiana Corporate, 200 Continental Drive,
Suite 401, Newark, Delaware – 19713, USA
T: +1-347-918-3531
For Sales Enquiries: sales@futuremarketinsights.com
Website: https://www.futuremarketinsights.com
LinkedIn| Twitter| Blogs | YouTube