Global hotel industry - additional information
Intrinsically linked with the travel and tourism industry, an industry which contributed 7.61 trillion U.S. dollars to the global economy in 2016, the hotel industry is certainly a profitable one. Travelers who are on the road for more than one day need a place to sleep and rest and there are various types of lodging across the world to accommodate for this. Clearly a valuable service, the industry was forecasted to reach around 553.8 billion U.S. dollars in retail value in 2018.
In 2016, the occupancy rate (the share of total rooms available which are occupied or rented at a given time) of hotels in all global regions had generally increased over the past five years, suggesting more demand for the industry. Europe was the region with the highest occupancy rate in 2016 at 70.4 percent, closely followed by the Asia Pacific region at 69 percent. In the same year, the Middle East and Africa was the most expensive region for hotels with an average daily rate of 149.02 U.S. dollars. The cheapest region for the last two years was Asia Pacific.
Despite being located in one of the cheapest regions for hotel rates, the most expensive city destination in the world can be found in the United States, New York City, according to travel review site TripAdvisor. Six out of the top ten most expensive city destinations for hotels were in Europe.