The global capsule hotel market is predicted to witness a progressive growth by 2028, owing to their affordable rates for customers. The solo sub-segment is expected to be most profitable. The Asia-Pacific region is expected to dominate the market.
NEW YORK, Nov. 9, 2021 /PRNewswire/ -- Research Dive has added a new report to its offering titled, "Capsule Hotel Market by Traveler Type (Solo and Group), Booking Mode (Offline Mode and Online Mode), Age Group (Generation X, Generation Y, and Generation Z), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021–2028".
According to the report, the Global Capsule Hotel Market is expected to generate a revenue of $211.7 million by 2028, exponentially growing at a CAGR of 6.0% during the forecast period 2021-2028.
Dynamics of the Market
Increase in the number of solo travels by people and availability of affordable hotels are expected to drive the growth of the market. In addition, rising number of middleclass people and their expenditure on numerous leisure activities including travel and tourism is further expected to bolster the growth of the capsule hotel market during the forecast period. Moreover, increase in adventure and travel expeditions among millennials across the globe is expected to create immense opportunities for the growth of the market during the forecast period. However, growing presence of budget-friendly hotels across the globe is expected to hinder the growth of the capsule hotel market during the forecast period.
The report has divided the market into various segments based on traveler type, booking mode, age group and region.
By traveler type, the solo sub-segment is expected to be most profitable, and generate a revenue of $177.4 million during the forecast period. In solo traveler's expedition to new places, they prefer an economical accommodation that has all the basic features they require. This factor is expected to stimulate the growth of the capsule hotel sub-segment during the forecast period.
By booking mode, the offline mode sub-segment is predicted to be most beneficial, and generate a revenue of $164.7 million during the forecast period. Online booking modes are exceedingly seamless and less time-consuming. This factor is expected to bolster the growth of the sub-segment during the forecast period.
By age group, the generation Z sub-segment is expected to be most lucrative, and generate a revenue of $69.9 million during the forecast period. Increasing prevalence of solo travelling among millennials to explore new places and culture is expected to drive the growth of the capsule hotel sub-segment during the forecast period.
By region, the Asia-Pacific market is expected to dominate the market, and generate a revenue of $179.1 million during the forecast period. Massive population in this region is expected to stimulate the growth of the market. In addition, rising number of capsule hotels in this region is further expected to bolster the growth of the regional capsule hotel market during the forecast period.
The outbreak of COVID-19 has an adverse impact in the growth of the global capsule hotel market, owing to the prevalence of lockdowns in various countries across the globe. Stringent travel restrictions were imposed by the government of numerous countries in order to curb the spread of the virus. Lockdowns resulted in the shutdown of hotels and restaurants across the globe, which resulted in their decreased demand. Thus, the pandemic has had a negative impact on the global capsule hotel market.
These players are working on developing strategies such as product development, merger and acquisition, partnerships and collaborations to sustain the market growth.
For instance, in June 2021, Suba Group, a Mumbai-based hospitality firm operating in the mid-tier segment, acquired 1589 Hotels, a leisure budget hospitality chain, in order to maximize Suba's presence in the global capsule hotel market by opening new avenues for the growth of the company.
The report also summarizes many important aspects including financial performance of the key players, SWOT analysis, product portfolio, and latest strategic developments.
Porter's Five Forces Analysis for the Global Capsule Hotel Market:
Bargaining Power of Suppliers: Changing consumer preference, aging pollution, and migrating millennial population is expected to mitigate supplier power. Thus, the bargaining power of suppliers is low.
Bargaining Power of Buyers: The tourist can search for the affordable hotel through online mode. They can explore and find the most competitive option that best suits the pocket. Thus, the bargaining power of the buyers is high.
Threat of New Entrants: The initial investment is high, thereby creating a unique entry barrier for the capsule hotel. In addition, the switching cost for customers is usually nil. Thus, the threat of the new entrants is moderate.
Threat of Substitutes: The increasing presence of mid-price range/budget hotels is a major substitute for the capsule hotel. Thus, the threat of substitutes is high.
Competitive Rivalry in the Market: The competitive rivalry among industry players is rather intense, especially between the mid-price hotels. These hotels provide value-added services to strengthen the footprint worldwide. Therefore, competitive rivalry in the market is high.
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