Hotel Gift Card Market
Global Market Study on Hotel Gift Cards: Rapidly Increasing Demand from the Millennial Population Aiding Market Growth
Hotel Gift Cards Market is Segmented product type such as Universal Accepted Open Loop, Hotel Closed Loop, Miscellaneous Closed Loop, E-Gifting having applications such as Stays, Holiday Packages, Bar and Spa Services, Meeting and Events, Sports Activities, Travel and Transportation
The global hotel gift card market is expected to witness significant revenue growth during the forecast period of 2020 to 2030. This growth is expected to be driven by the rising trend of leisure activities among the young population, along with increasing adoption of virtual gift cards among millennials and working professionals, as they prefer instant and one-stop shop options.
In addition, luxurious and changing lifestyles are also driving the gifting culture and habits among millennials, thereby making gift cards a popular choice.
The hotel gift card market is fragmented in nature, owing to the presence of several companies offering innovative products such as e-gift cards and leveraging digitalization to gain an advantage in the intensely competitive environment. Blackhawk Network Holdings Inc., Starwood, Marriott, and Carlson are some of the major market participants.
East Asia is projected to be a comparatively faster growing market among others in the global hotel gift card market, registering a CAGR of more than 23% over the forecast period
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- Amazon.com Inc.
- Blackhawk Network Holdings, Inc.
- MakeMyTrip Limited
- Avani Hotels & Resorts Limited
- Anantara Hotels, Resorts & Spas
- Toga Far East Hotels
- Expedia Group
- Arp-Hansen Hotel Group
- Valencia Hotel Group
- Taj Hotels
- Qwikcilver Solutions Pvt. Ltd.
- Other Players
Increasing Demand for Corporate Hotel Gift Cards Positively Influencing Market Growth
One of the prominent factors that is contributing to the growth of this market is the increasing demand for gift cards from the corporate sector. Corporate houses, in recognition of employees’ contribution to their firma, are presenting gift cards to them. Various hotels and third parties offer corporate hotel gift cards or hotel gift cards for companies.
This increases the sales of hotel gift cards in terms of volume. Around 30% of the hotel gift card market revenue is driven by the B2B sales channel. As such, the high use of gift cards in the corporate sector is one of the primary factors driving the growth of the global hotel gift card market.
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Online Platforms Aiding Growth of Hotel Gift Card Market
Growing preference for the use of smartphones for booking and payment using mobile barcodes, quick-response codes, and payment systems that make booking easy for customers, is being witnessed. The launch of various booking apps by companies is making bookings very easy for customers, which increases the chances of tourists opting for e-gift cards across the globe.
In addition, growing popularity of the e-gifting trend is expected to expand the global hotel gift card market at a significant CAGR over the forecast period. This can be attributed to the increasing demand for personalized gift cards by consumers, along with the emergence of new players in the online gifting industry.
Moreover, a large number of customers are now technologically updated and searching for optimal services that are convenient and economical. This will further accelerate the growth of the hotel gift card market over the coming years.
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Hotel Gift Card Market: Competition and Regional Overview
The global hotel gift card market is anticipated to be highly fragmented, where a large number of small- and mid-level players are operational in the market. There are many players who are significantly increasing their market footprint to meet the growing demand for hotel gift cards, as the increasing number of international visitors and customer inflow in hotels has led to the high adoption of hotel gift cards.
Various leading hotel chains are also investing in online platforms, along with focusing on customer retention strategies, frequent product launches, various holiday packages, increasing customer base, and merger & acquisition strategies.
- For instance, Swissotel Hotels & Resorts’ gift cards are used for accommodation and more, including spa services, dining or other leisure activities at any facility managed by Swissôtel Hotels & Resorts. For in-house guests, any charge that can be applied to a hotel bill can be paid for with a gift card.
- In 2018, the company purchased Mantra (an Australian mid-scale hotel and resort company), Movenpick Hotels (Switzerland-based high-end hotel operator), and Atton Hoteles (operator of hotels in Chile, Peru, Columbia, and Florida).
According to PMR’s report, the hotel gift card market is projected to reach sales of US$ 36.7 Bn in 2020, and register a CAGR of 14% over the forecast period of 2020-2030.
North America holds the largest share in the global hotel gift card market, followed by Europe, owing to increasing bookings of hotels by millionaires, which is significantly propelling the sales of hotel gift cards. Millionaires are more likely to purchase hotel gift cards, whether it is open or closed loop, as compared to other demographics.
Moreover, increasing number of working millionaires are showing interest in hotel staying and opting for e-gift cards, which, in turn, is expected to boost the growth of the hotel gift card market during the forecast period.
The market in East Asia is expected to expand at the highest CAGR during the forecast years, owing to the increasing purchasing power of middle income population, which is allowing them to plan for tours and hotel stays. These factors are positively influencing the sales of hotel gift cards in the region.
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A brief overview of the changing landscape of the hotel gift card market has led our analysts to conclude that, the market is significantly gaining popularity. The demand for hotel gift cards is rapidly increasing in developed regions such as North America and Europe.
On the other hand, e-gifting is gaining prominence, and open loop gift cards are growing in popularity. On the down side, the gift card industry has been facing a slight decrease in demand after the outbreak of COVID-19 and social distancing measures taken by governments. Due to lockdowns across the world, product availability in the market has also been hit, which will hamper the growth of the hotel gift card market to some extent, at least in the short term.
Hotel Gift Card Market: Segmentation
PMR’s research study on the global hotel gift card market offers a detailed market taxonomy, wherein, key segments have been discussed in detail. The hotel gift card market is segmented on the basis of product type, application, price range, end-users, sales channel, and region. Every segment is analyzed in detail, and data pertaining to the growth of each segment has been included in the study.
Key Questions Answered in Report
- How much is the hotel gift card market worth?
The global hotel gift card market is estimated to be worth US$ 135 Bn by the year 2031.
- What will be the demand outlook?
The global hotel gift card market is expected to witness a CAGR of 15% between 2021 and 2031.
- What was the last 5 year market CAGR?
The global hotel gift card market witnessed a CAGR of 13% between 2015 and 2020.
- What are the key trends of hotel gift card market?
The latest trend is that of the developing economies going for gift cards.
- What is driving the demand for hotel gift card?
The fact that hotel gift cards provide direct opportunity for the sales channels to obtain bonus on products bought by making use of gift cards is driving the demand for hotel gift cards.
- What is the market share of top 5 players?
The top 5 players such as American Express Company, Amazon.com, Blackhawk Network Holdings, Inc., Fiserv, Inc., and Givex Corporation hold more than 25% of the market share.
- What are the top 5 countries driving demand?
The top 5 countries driving demand include the US, UK, India, China, and Switzerland.
- What is North America’s market Outlook?
North America holds more than 40% of the market share due to the US dominating the market.
- At what percentage hotel gift card market is going to register growth in Europe?
Europe is expected to register growth at the rate of 13.5% in the hotel gift card market between 2021 and 2031.
- Which countries are key providers of hotel gift cards?
The US is the key producer of hotel gift cards.