US Lodging Market Report 2023
"Accommodations are back! Industry revenue and profits have recovered despite only domestic leisure travel fully getting back to pre-pandemic levels.
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Overview
- What you need to know
- This Report looks at the following areas:
- Definition
- Market context
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Executive Summary
- Top takeaways
- Consumer trends
- Travelers make a strong return to lodging, focused on value
- Figure 1: Lodging used in the past two years, 2021-23
- All-inclusive resorts are known for ease, less so for options and local immersion
- Figure 2: Opinions of resort amenities, by all-inclusive resort guests, 2023
- Competitive strategies
- OTAs leverage artificial intelligence to gain on hoteliers’ expertise
- Brands evolve their identities to reflect the needs of modern travelers
- Loyalty programs offer rewards with less accrual to maintain relevance
- Market predictions
- Figure 3: Total US sales and fan chart forecast of lodging, at current prices, 2017-27
- Figure 4: Lodging outlook, 2023-28
- Opportunities
- Hotels can attract younger generations by being tech-forward
- Figure 5: Preferred hotel amenities – Select items, by generation, 2023
- Homeshares should press authenticity, other factors among younger travelers
- Figure 6: Homeshare opinions – Select items, by generation, 2023
- Add-ons can bring in new revenue streams
- Figure 7: Attitudes toward hotel booking, by generation, 2023
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Market Size and Forecast
- Lodging revenues, profits surge on the back of leisure demand
- Figure 8: Total US sales and fan chart forecast of lodging, at current prices, 2017-27
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- Figure 9: Total US revenues and forecast of lodging, at current prices, 2017-27
- Lodging revenues, profits surge on the back of leisure demand
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Lodging Market
- Accommodations use grows despite inflation
- Figure 10: Lodging used in the past two years, 2021-23
- Profits are up, but stability will come with the full return of travel
- Figure 11: Occupancy, ADR and RevPAR, 2022-23
- Accommodations use grows despite inflation
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Market Drivers
- Inflation drives revenue, but increasing operational costs drag on profits
- Figure 12: Consumer Price Index and lodging away from home change from previous period, 2013-23
- Consumer response to inflation puts hotels in a bind
- Figure 13: Travel adjustments due to inflation, 2022-23
- Supply chain issues force hotels to think about rates and resiliency
- Employment improves, but the sector needs more, fast
- Figure 14: All employees – Leisure and hospitality (millions), seasonally adjusted, 2013-23
- High-spend international arrivals down but continue to increase
- Employees and corporate travel managers anticipate business travel
- Figure 15: Types of business travel, by type and timing, 2023
- Consumers and legislators force hotels to be proactive in sustainability
- Acheson Hotels, LLC v Laufer underscores focus on accessibility
- Inflation drives revenue, but increasing operational costs drag on profits
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Key Players
- Hotel brands
- Figure 16: Annual revenue of select hotel brands, 2019-22
- Marriott International
- Hilton Worldwide
- Hyatt Corporation
- Choice Hotels International
- Strong demand preserves traditional ad spending cycles
- Figure 17: Digital advertising overview, 2020-23
- Figure 18: Share of voice for digital ad spending among competitive set, 2020-23
- Figure 19: Marriott Travel Makes Us Whole | Marriott Bonvoy, 2021
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- Figure 20: Hilton. For the Stay. | Dream Vacation, 2022
- Thoughtful tactics make digital spending worth it
- Figure 21: Spend and impression share of website ads, by platform and format, 2020-23
- Figure 22: tommie Austin mobile display ad, 2022-23
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- Figure 23: Spend and impression share of social ads, by platform, 2020-23
- Airbnb
- Vrbo
- Rental companies choose their marketing lanes
- Figure 24: Vrbo “Only Your People” campaign ad, 2022
- Hotel brands
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Competitive Strategies and Market Opportunities
- Mintel Trend Drivers
- Trend Driver – Technology
- OTAs explore strategies involving generative AI
- The direct/OTA battle could become fiercer
- Figure 25: Ava chatbot preview Twitter post, 2023
- Trend in Action – Extend My Brand
- New hotel brands emerge to meet modern travelers
- Figure 26: Spark by Hilton Instagram post, 2023
- Realize that consumer status isn’t static
- Trend in Action – Hungry Planet
- Radisson makes sustainability their brand
- Go green, but without cynicism
- Trend Driver – Value
- As TLPs become more powerful, brands rethink their value to guests
- Figure 27: Hotels/motels consumer direct loyalty mailings, 2020-23
- Loyalty programs shift to reward entry-level members
- Make TLPs more valuable for new members
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The Lodging Guest – Fast Facts
- Shifting focus from infection to inflation mean shifting priorities
- The room is a place to shut out intrusions
- Rentals/homeshares yearn for identity
- Resorts hit on travelers’ need to conserve effort
- Hotel guests are ready to pay for the room they want
- Sustainability is on the hotel
- Kindness not only to the planet is important – but to people, too
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Lodging Choice Factors
- Travelers are focused on value, more concern around amenities
- Figure 28: Lodging choice factors, 2021 vs 2023
- Brand reputation matters more for upscale and higher tiers
- Figure 29: Lodging choice factors – Select items, by type of hotel stayed in, 2023
- Intentional design choices can hook younger travelers
- Figure 30: Lodging choice factors– Select items, by generation, 2023
- Travelers are focused on value, more concern around amenities
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Hotel Amenities
- Demand for smart tech is muted…for now
- Figure 31: Preferred hotel amenities, 2023
- Amenities set brands apart at multiple points along the price spectrum
- Figure 32: Preferred hotel amenities – Select items, by hotel tier, 2023
- Tech and wellness will be important features in tomorrow’s hotel room
- Figure 33: Preferred hotel amenities – Select items, by generation, 2023
- Demand for smart tech is muted…for now
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Homeshares vs Vacation Rentals
- Homeshares and vacation rentals need to target their specific fans
- Figure 34: Homeshare and vacation rental comparison, 2023
- Homeshares should press their advantage with Gen Z, Millennials
- Figure 35: Homeshare opinions – Select items, by generation, 2023
- Hispanics see homeshares as safe, Black lodgers need more guarantees
- Figure 36: Homeshare and vacation rental comparison, by race and Hispanic origin, 2023
- Lodgers want reasonable, transparent costs and human hosts
- Figure 37: Attitudes toward the homeshare/vacation rental industry, 2023
- Rental properties need to preserve the local residents
- Figure 38: Attitudes toward the homeshare/vacation rental industry, by generation, 2023
- Homeshares and vacation rentals need to target their specific fans
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All-Inclusive Resorts
- Resorts are an opportunity to leave decision making behind
- Figure 39: Opinions of all-inclusive resort amenities, 2023
- The most appealing resorts do the most to remove mental effort
- Figure 40: Opinions of all-inclusive resort amenities – TURF Analysis, 2023
- Younger travelers don’t find resorts as fulfilling
- Figure 41: Opinions of resort amenities, by generation, 2023
- Resorts are an opportunity to leave decision making behind
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Attitudes toward Hotel Booking
- Room selection is a desirable add-on
- Figure 42: Attitudes toward hotel booking, 2023
- Millennials expect customization and choice in booking
- Figure 43: Attitudes toward room selection upcharge, by generation, 2023
- Room selection upcharge may work best for upscale, upper-upscale tiers
- Figure 44: Attitudes toward room selection upcharge, by HHI, 2023
- Room selection is a desirable add-on
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Attitudes toward Sustainability
- Sustainability needs to be built into a property
- Figure 45: Attitudes toward sustainability, 2023
- Younger lodgers aren’t yet convinced by green hotel claims
- Figure 46: Attitudes toward sustainability, by generation, 2021 vs 2023
- Luxury, boutique hotels positioned to be sustainability leaders
- Figure 47: Attitudes toward sustainability, by hotel tier, 2023
- Sustainability needs to be built into a property
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Attitudes toward Transparency
- Social values are increasingly important for building brand relationships
- Figure 48: Attitudes toward transparency, 2023
- Gen Z and Millennials are particularly conscious
- Figure 49: Attitudes toward transparency, by generation, 2023
- Diversity, sustainability resonates with Black and Hispanic travelers
- Figure 50: Attitudes toward transparency, by race and Hispanic origin, 2023
- Social values are increasingly important for building brand relationships
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Appendix – Data Sources and Abbreviations
- Data sources
- Sales data
- Forecast
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
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Appendix – The Market
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- Figure 51: Total US revenues and forecast of lodging, at inflation-adjusted prices, 2017-27
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Appendix – The Consumer
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- Figure 52: Homeshare and vacation rental comparison among short term rental guests, 2023
- TURF analysis
- Figure 53: Table – TURF Analysis – All-inclusive resorts, 2023
- Methodology
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Find the latest consumer trends and current demands of the US lodging industry in this report. Inside the full report, you’ll find an in-depth analysis of hotels, homeshares, vacation rentals, and further segments. Read below to see some of our expert insights from this report.
US Lodging Industry Overview
This report finds that the US lodging industry is seeing a strong return to travel, with 80% of consumers having used paid accommodations in the past two years. Similarly, our Vacation Plans and Priorities Report shows seven in 10 had taken a vacation during the first half of 2022.
Meanwhile, Mintel’s hotel market insights reveal that economy and midscale hotel properties are the most popular, while all-inclusive resorts need to appeal to a wider audience — find out how and why in the full report.
Lodging Consumer Attitudes and Trends
Independent research conducted for this report finds that Smart TVs and soundproof windows are the top two desired in-room amenities for hotel guests. Consumer trends indicate that they don’t want any outside intrusion in their rooms, even if it’s just a virtual assistant. This ties in with a trend of seeking a stress-free experience, which we discuss in the next opportunities section.
As the US lodging industry continues to evolve, homeshares and vacation rentals are finding it difficult to stand out from not only hotels, but from each other. The vacation rental market may currently be at a disadvantage as fewer travelers see them as better value than homeshares. Details on this development and how providers should respond are outlined in the report.
- Hotel consumer trends: 43% of consumers want soundproof windows as part of their hotel rooms, showing a desire for an uninterrupted stay.
- The vacation rental market needs attention: 29% see homeshares as better value, while 21% show a preference on value for vacation rentals, when comparing the two lodging types.
Opportunities for Lodging Providers
Hotels can find additional revenue streams even with occupancy levels still yet to fully recover from the pandemic. Offer à la carte booking options to appeal to guests and boost revenues – just like flight seat selection, they can pre-book their preferred room in advance.
Overall, lodging providers should consider an important finding of this report: stress-free planning, booking, and checkout are essential for all types of lodging to capitalise on travelers’ desire for stress-free stays.
To reveal a comprehensive list of opportunities in the US lodging industry, buy the full report. Or, browse our holidays and travel market research, and find exactly what you’re looking for.
Topics Analysed in This Report
- How inflation has affected the choices travelers make in accommodations.
- The in-room amenities hotel guests value most.
- How short-term rental brands can differentiate from one another and from hotels.
- What makes all-inclusive resorts appealing.
- What travelers want from accommodations, beyond an over-night stay.
Definitions, and Companies Covered
For the purposes of this report, Mintel defines “lodging” as paid overnight accommodations catering to individuals or groups of travelers. Various brands are covered, including but not limited to Marriot, Hilton, Hyatt, Choice, Airbnb, Vrbo, and Expedia.
Expert Analysis from a Travel and Leisure Specialist
This report, written by Mike Gallinari, a leading travel and leisure analyst, delivers in-depth commentary and analysis to highlight current trends in the US lodging market and add expert context to the numbers.
Accommodations are back! Industry revenue and profits have recovered despite only domestic leisure travel fully getting back to pre-pandemic levels. Still, properties will need to increase their occupancy, and they’ll have to entice a travel population focused on value, ease, and control.
Mike Gallinari
Senior Travel & Leisure Analyst
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