Tourism and hospitality companies have changed over the past decade. McKinsey takes a look at trends in accommodations and experiences
Jun 4, 2024
As destinations and source markets have changed, tourism and hospitality companies have evolved too. Six key trends have shaped business models in this sector over the past decade.
Key takeaways
- In accommodation, asset-light models like franchising and management have proliferated, though luxury and small-scale brands are opting out. Consolidation has driven economies of scale;
- Not all of hospitality is embracing asset-light model, however. Luxury hotel chains have resisted the trend, largely retaining in-house ownership to control standards;
- Hotels are looking to reclaim their relationship with guests, and almost two decades in, home sharing is charting its own course;
- Home sharing is here to stay. The segment has grown from 10 to 14 percent of booking value between 2017 and 2023, experiencing ups and downs in profitability along the way.
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