Part one of this article presented initial findings regarding how hotel group supply has developed over the last two decades, this second part concentrates on the extent of market penetration the hotel groups have achieved globally.
Global Market Penetration
We analyzed the extent to which the global hotel industry had been penetrated by the hotel groups in terms of the proportion of total room stock that was affiliated to the hotel groups.
For the purpose of this paper it was necessary to use secondary sources to gain comparable data on total hotel room stock (independent unaffiliated and group affiliated) for each country. However, it was not possible to source reliable, comparable data for every country in the world for which The Global Hotel Group & Brand Analyses cover, but it was identified that 120 countries (this included all the key hotel markets globally) had suitable data for comparison with the Hotel Group data derived from the aforementioned The Global Hotel Group & Brand Analyses. The proportion of total hotel room stock that was group affiliated was then measured in percentage terms and the countries were categorized. The global average level of market penetration by Hotel Groups (based on Number Bedrooms) was 37.8%.
Table seven shows the number of countries in each market penetration banding. This shows that only 17.5% had group penetration levels of over 50%, and 53% had group penetration levels of less than 25%. Read more
Published in: http://ehotelier.com By: Warwick Clifton