(MENAFN- Straits Research)
market Dynamics
The capsule hotel, also known as a pod hotel or sleeping cabin, is an innovative and budget-friendly form of lodging. It is a new and distinct type of accommodation that is affordable and furnished with basic amenities, such as a single or double bed, pillow, locker facility, alarm clock, charging socket, and shared bathroom. The demand for capsule hotels among travelers is fueled by the expansion of the global travel and tourism industry and a preference for economical lodging on the road. However, the expansion of the capsule hotel market has been hampered by a rise in terrorism and domestic issues in numerous countries. Nevertheless, the emergence of capsule hotels in untapped markets will likely present an opportunity for the capsule hotel industry to expand in terms of sales value over the forecast period.
According to the leading manufacturers, the availability of capsule hotels at a lower price than other opulent and conventional hotels, lodges, and other forms of lodging is another major factor driving the growth of the capsule hotel market. In addition, these hotels offer hourly accommodations and are situated near airports and train stations, allowing travelers to unwind before or after their journey. This aids the expansion of the market for capsule hotels.
The Rise of Travel and Tourism Industry Along with The Advantage of Cost-Effectiveness to Drive the Global Capsule Hotel Market
In the past few decades, the tourism industry has grown significantly globally. This results from a rise in business travelers opting for unique and exotic vacation destinations to escape the daily grind and obtain valuable experiences. Additionally, there is an increase in travelers looking for simple accommodations for a single night or hourly stay. Airport or train station-based capsule hotels offer this amenity reasonably to travelers. You will find USB ports, electrical outlets, storage space, beds, and other necessities in these hotels. Consequently, the preference for inexpensive and convenient lodging options promotes the expansion of the travel and tourism industry, promoting the development of the capsule hotel market in terms of revenue.
Additionally, capsule hotel rooms are typically more affordable than other types of lodging, such as lodges, guesthouses, and luxury hotels. When reserving a temporary place to stay while traveling, cost-effectiveness is the most significant consideration. As a result, this option is preferred by the majority of travelers when reserving a room. In addition, the fact that these hotels are available hourly at the airport and train station and are equipped with the essentials for travelers increases their demand.
Introduction of Capsule Hotels in Untouched Markets to Create Global Capsule Hotel Market Opportunities
Capsule hotels are in their infancy in developed regions of North America and Europe, such as Mexico, the United Kingdom, Italy, and Canada. These regions have many tourists, presenting a lucrative opportunity to capitalize on the rising demand for capsule hotels and representing the future market potential for the industry's major players. In addition, increasing traveler awareness of capsule hotels is expected to generate lucrative growth opportunities for the capsule hotel market in the coming year.
Regional Insights
Asia-Pacific will most likely hold the largest market share during the forecast period and grow at a CAGR of 7.6%. The growth of the capsule hotel market in the Asia-Pacific region is fueled by the infrastructure improvement and the presence of many customers, primarily in Japan, who prefer to stay in capsule hotels. Asia-Pacific has long been renowned for its allure and vibrant culture. Asia-Pacific countries have the highest proportion of high-income households who travel abroad. This results from the Asia-Pacific region's rapidly growing economy and new employment opportunities, which have increased household income. As a result, expanding capsule hotels in countries such as India, China, Malaysia, Singapore, and Taiwan is anticipated to be presented with enormous opportunities.
North America will have the second-largest market share of USD 16 million, growing at a CAGR of 13.5%. The growth of the North American market for capsule hotels can be attributed to the rapid adoption of digital media, which has been a significant factor in attracting tourists to travel websites such as TripAdvisor, as well as an increase in the number of travelers seeking new experiences and destinations. The expansion of the market for capsule hotels in the United States is also fueled by a rise in disposable income and improved air connectivity with various travel destinations. Increased air connectivity and disposable income have led to increased Canadians and Mexicans opting for capsule hotels.
In recent years, the United Kingdom, France, Italy, Spain, and New Zealand have been Americans' most famous outbound travel destinations. The percentage of male travelers departing the United States has been more significant than the number of female travelers. The number of outbound travelers from the U.S. market has grown significantly over the years, reaching 72.6 million in 2016.
LAMEA will show a significant growth rate with the highest CAGR during the forecast period. The market for capsule hotels in LAMEA is driven by a growing affluent population and an increasing propensity for travel and leisure. In addition, increased social media exposure and the establishment of capsule hotels at numerous airports, including airports in Africa, Turkey, and others, propel the capsule hotel market growth in this region. In addition, well-known travel destinations such as Abu Dhabi and Dubai attract tourists from all over the world, creating a favorable opportunity for expanding the market for capsule hotels in terms of revenue during the forecast period.
Key Highlights
The global capsule hotel market had a revenue share of USD 205 million in 2021, growing at a CAGR of 8.15%, and is envisioned to reach USD 327 million during the forecast period.
Based on traveler type, the segment of solo travelers is likely to hold the largest market share during the forecast period and grow at the highest CAGR of 8.9%.
Based on booking mode, the segment of offline booking mode is expected to hold the largest market share during the forecast period and grow at a CAGR of 8.3%.
Based on age group, the group generation Y is anticipated to have the largest market share during the forecast period growing at a CAGR of 8.8%.
Based on regional analysis, Asia-Pacific will likely hold the largest market share during the forecast period and grow at a CAGR of 7.6%.
Competitive Players in the Market
The Capsule Hotel
First Cabin HD Co., Ltd.
UZ
Book & Bed Tokyo
Urbanpod Hotel
The CUBE Hotel Group
Riccarton Capsule Hotel
Nadeshiko Hotel Shibuya
The Bed KLCC
Pangea pod hotel
Market News
In 2022, the Central Railway of India announced the development of the second pod hotel at the Chhatrapati Shivaji Maharaj Terminus in south Mumbai.
Global Capsule Hotel Market: Segmentation
By traveler type
Solo
Group
By booking mode
Online Booking
Offline Booking
By age group
Generation X
Generation Y
Generation Z
By region
North America
Asia-Pacific
Europe
LAMEA
MENAFN29072024004597010339ID1108492641
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.