Market Trends

🏀 Sports tourism, representing 10% of global tourism spending, is projected to hit $1.3 trillion in 2023. Expedia's research included 2,000 respondents from eight countries who traveled for sports in the last year. The majority attended events with friends (35%), partners (34%), or family (33%). Among 16–34-year-olds, 24% went to mixed-gender events, and 12% to women's sports. Internationally, 44% traveled for events, with Canadians (62%), Germans (58%), and the French (57%) leading. Average spending was over $1,500 per trip, with future plans to spend over $1,200.

🛫 ATPI, a travel and events solutions provider, is expanding across Asia, with the regional corporate travel market projected to increase from $737.1 billion in 2024 to $848.16 billion by 2025. The Manchester-headquartered company is enhancing its presence in China, Taiwan, South Korea, and opening new offices in India and Balikpapan, Indonesia. ATPI's expansion aims to meet the demands of Asia's rapidly growing economic sectors, including technology, AI, electric vehicles, and renewable energy. With a focus on tech-driven, custom travel solutions, ATPI also caters to specific industries like marine, energy, and event management.

🌍 India's tourism industry is booming, with a focus on its market at the Arabian Travel Market (ATM) from 28 April to 1 May in Dubai. India's outbound tourism is expected to hit US$55 billion by 2034, growing at a CAGR of 11.4%. Dubai saw 3.14 million South Asian visitors last year, with India being significant. Indian hotel supply grew at over 3% CAGR in the last decade, adding 114,000 rooms since 2014. ATM 2023 will see a 41% increase in Indian participation, expecting over 47,000 attendees and 2,600 exhibitors.

🍫 In less than a year, Dubai Chocolate became a global dessert sensation, starting with a viral TikTok video by a Dubai-based creator. Named “Dessert of the Year” in a Hospitality Trends Report, it has inspired numerous variations across restaurants and pastry shops. A new trend, Dubai Strawberry Parfaits, layers fresh strawberries, pistachio cream, kataifi, and chocolate sauce. These desserts are now featured from brunch menus to evening offerings.

🏨 Italy-based Hotel group Gruppo UNA rebrands as UNA Italian Hospitality, focusing on Italian heritage with over 50 hotels nationwide, including UNA Esperienze and UNA HOTELS collections. Rebranding aims to boost brand recognition and cater to a growing international audience, with two-thirds of revenue from international guests. CEO Giorgio Marchegiani emphasizes authenticity and "Italianness". A new website with enhanced booking engine, virtual tours, and personalized content supports the rebrand.

📌 In the hospitality industry, optimism peaked in late 2022 due to interest rate cuts beginning in September and strong performance in urban travel, particularly international group and business demand. However, by 2023 and 2024, geopolitical developments and potential trade wars introduced uncertainty. While the fundamentals of travel demand remained robust, hotel investment decisions faced increased uncertainty from tariffs, immigration policies, and inflation, which could lead to higher interest rates. Despite global concerns, the success of individual hotels or hotel collections largely depends on local market conditions. Detailed market knowledge, understanding demand drivers, and leveraging third-party resources like STR and CoStar are essential. Immediate impacts from tariffs include increased construction costs and supply chain disruptions, while longer-term impacts might include reduced consumer discretionary spending, affecting travel demand. San Francisco's hotel market, hit by multiple challenges including the loss of conventions, tech company relocations, and a decrease in Asian travel, particularly from China, saw further declines in 2023 and 2024. Yet, JLL anticipates a recovery starting in 2025, with strong events returning, tech companies reestablishing offices, and investor interest rising, positioning San Francisco for potential growth. Overall, navigating uncertainty requires focusing on controllable factors, understanding local markets, and seizing opportunities during uncertain times.