European Commission’s Digital Tourism Initiative to Revolutionize Tourism & Subsequently, Provide Impetus to Beach Hotels Market Growth

Fri, 31 May 2019 3:52

The growth of the global tourism sector has been trailing the increasing spending capacity among the global population. According to the World Travel and Tourism Council, leisure travel spending is estimated to grow by 4.1% per annum to attain a value of approx. USD 917.7 billion by 2027.

Segmental Insights

The global beach hotels market can be segmented by type, service type, and occupant.

Based on type, the market can be segmented into premium, standard, and budget. The growing middle class, specifically in countries across Asia Pacific, offers several growth prospects for the budget segment of beach hotels.

By service type, the market can be segmented into food & beverage, accommodation, and others. The increasing demand for leisure and comfort have popularized the concept of customized accommodation during travel, which has broadened the scope of the accommodation segment.

Based on occupant, the market can be segmented into solo and group travels. The growing number of tourism service providers such as Veena World, Make my Trip, and Club Mahindra Holidays that offer attractive discounts over group travels fuels the growth of the group travel segment in the beach hotel market. 

Regional Insights

Geographically, the global beach hotels market has been segmented into North America, Europe, Asia Pacific, and Latin America and the Middle East & Africa (LAMEA).


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North America is witnessing significant growth in tourism and associated services as a result of the varied adoption of several lifestyle trends among the population. According to the International Trade Administration, the U.S. leads tourism and travel exports and ranks second in terms of total visitation. In 2017, tourism exports accounted for about 11% of all U.S. exports and a third of all U.S. service exports. In 2016, the U.S. tourism and travel output represented approx. 2.7% of the total GDP, depicting North America to offer several opportunities for the beach market. 

Europe has a strong tourist base as a result of the region’s scenic beauty and popular beaches. In an era where technology has taken over every industrial sector and has given new prospects to be achieved, the European tourism sector is no exception. For instance, the introduction of digital tourism to support the use of and access to ICT tools is an area of priority for the European Commission. The technology largely focuses on helping tourism businesses and associated services go digital and establishing a strong and efficient digital tourism network.

Prominent economies such as India, China, and South Korea in Asia Pacific have been intensively working on developing their tourism sectors with the help of their respective governments. For instance, the Indian Ministry of Tourism has undertaken an initiative to develop tourist destinations with mega infrastructure in an integrated manner. This initiative comprises 29 mega projects for development with a primary focus of catering the best and most satisfying experiences to the tourist population.

Developing economies such as Brazil drive Latin America’s tourism sector. Popular beaches such as the Pipa beach, Praia do Rosa, Stella Maris beach, and Praia do Pinho attract travelers, which broadens the scope of the region’s beach hotels market. In the Middle East and Africa, phenomenal infrastructure growth is creating growth opportunities for the tourism sector. According to the UNWTO (World Tourism Organization), Africa witnessed 9% growth, worth approx. 63 million, in 2017.

Key Players

Some of the major players operating in the market are Four Seasons Holiday Inc., Marriott International, Inc., The Oberoi Group, The Indian Hotels Company Limited, Accor SA, Hyatt Hotels, InterContinental Hotels Group PLC (IHG), ITC Limited, Hilton Worldwide Holdings Inc., and Wyndham Worldwide Corporation. ITC Limited launched its first luxury hotel in Goa, which is a 252-room sea-facing resort.

Beach Hotels Segmentation

  • By Type
    • Premium
    • Standard
    • Budget
  • By Service Type
    • Accommodation
    • Food & Beverage
    • Others
  • By Occupants
    • Solo
    • Group