Hotels/Resorts/Cruise lines

The Hotels/Resorts/Cruise lines industry is a diverse segment of the stock market, including hotels, resorts, and cruise lines catering to leisure and business travelers. The global market was estimated at USD 803.38 billion in 2024 and is projected to reach USD 2,214.03 billion by 2030, with a CAGR of 18.8% from 2025 to 2030. The hotel segment holds the largest market share, accounting for over 52.6% in 2024.

Performance in the Hotels/Resorts/Cruise lines industry is influenced by economic indicators, consumer behaviors, technological advancements, and regulatory shifts. Rising disposable incomes and the increasing global trend of travel and tourism are key drivers. Consumer behavior trends include a preference for experiential and wellness travel, with increasing travel by Gen Z and millennials and flexible remote work arrangements contributing to demand. Technological developments, such as digital experiences and personalized offerings, are important, along with an emphasis on sustainability initiatives and eco-tourism.

The Hotels/Resorts/Cruise lines industry includes large corporations and niche players. Major hotel and resort companies include Marriott International, Hilton Worldwide, Hyatt Hotels, IHG, Wyndham Hotels & Resorts, and Accor S.A. Key cruise line players are Carnival Corporation, Royal Caribbean Group, and Norwegian Cruise Line Holdings. These companies compete through brand recognition, loyalty programs, and technological enhancements. Business models vary, with independent properties holding a significant market share, while the franchise model is expected to grow due to the popularity of branded hotel chains.

The Hotels/Resorts/Cruise lines industry has shown strong recovery, with the hotel sector experiencing significant growth in 2024 and positive forecasts for 2024-2025. International arrivals in the U.S. increased by 24% in 2024. Cruise lines are outperforming hotels in pricing and volume for 2025 and 2026, with Carnival Corporation reporting a 38% year-over-year increase in EBITDA. The global cruise tourism market is projected to grow from USD 78 billion in 2025 to USD 203 billion by 2035, with a CAGR of 9.9%. The overall outlook for the travel and tourism sector is healthy, driven by demand, evolving expectations, and technological integration.

Investors in the Hotels/Resorts/Cruise lines industry face risks including sensitivity to economic downturns and substantial regulatory and compliance costs. Labor costs and shortages, along with competition from alternative accommodations like Airbnb, pose challenges. The industry is exposed to commodity price volatility and geopolitical factors, as well as cybersecurity threats.