FMI: Pop-up hotels market is projected to reach at a US$ 34.24 bn by 2032

The pop-up hotels market is poised to reach a valuation of US$ 19.12 Bn in 2022. Sales are projected to increase at ~ 6% CAGR, with the market size reaching US$ 34.24 Bn by 2032.

The pop-up hotel market is increasing slowly and steadily. There are not many popular pop-up hotel companies around the world, but there are few ones which are operating really well on their own. These organizations have developed their own market based on different events and tourism trends, where they can provide services to tourists.

As the trends like ‘Minimal Lifestyle’ and ‘Sustainable Life’ are among young generation, people will keep coming to experience such trends at least once. There is market available for pop-up hotels during seasonal tourism and cultural festivals celebrated around the globe.

Key takeaways from the pop-up hotels market study:

• The North America, Europe and Asia Pacific regions hold a market share of ~20%, ~24% and ~28% respectively.
• The Covid-19 pandemic had a 100% impact on the value of the Pop-up Hotels sector.
• Pop-up Hotel market is contributing 2.5% to Global Hotel Industry.
• Tents and Yurts are the most common accommodations used in Pop-up hotels.

“Pop-up hotels are trending among tourists, following the Minimal Lifestyle and enjoying the stays in unexplored, remote places.” – FMI Analyst said.

Impact of COVID-19

The Pop-up Hotels were utilized by tourists visiting festivals and concerts around the globe, and were starting to enter in luxurious accommodation market. Because of COVID-19, all these concerts and festivals were cancelled.

The public gathering was restricted all around the world and borders of all the countries were closed to control the virus outbreak. Because of these reasons, the main market for Pop-up hotels was shut down completely. In 2021, as lockdown ended and tourism started again, pop-hotels started emerging in other markets too. Pop-up hotels also started providing luxurious accommodation and customized accommodations according to customers’ needs.

The COVID-19 was really awful for the pop-up hotel market, but this industry will recover and flourish considerably more than it did before.

Who is winning?

There are pop-hotel companies providing accommodation for tourists, mainly to campers and visitors to cultural festivals. These are not the only possible market; as pop-up hotels are also starting to provide customized lodging to different tourist’s locations and minimal accommodations in many important cities around the globe.

The key players in the pop-up hotels market are Ice Hotel, Black Tomato, Terra Glamping, Zand Hotel, The Pop-Up Hotel, Snooze Box, Sleeping Around, San Giorgio, Icehotel, The Kimpton Gray, etc.