Global Market Study on Hotel Gift Cards: Rapidly Increasing Demand from the Millennial Population Aiding Market Growth


Hotel Gift Card  Market
  • Published On : May-2020 |
  • Pages : 300 Pages |
  • Format : Hotel Gift Card  Market Hotel Gift Card  Market Hotel Gift Card  Market Hotel Gift Card  Market

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

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.

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.

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.

Analysts’ Viewpoint

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 - Scope of the Report

Persistence Market Research (PMR) recently published a new report on the hotel gift card market for the assessment period of 2020-2030. The report offers a close look at the evolving aspects of the hotel gift card market, and insights into the dynamics impacting market growth. It also focuses on key developments in the hotel gift card market. The report includes various macro- and micro-economic factors responsible for a significant impact on the hotel gift card market.

The report on the hotel gift card market extensively focuses on the key trends shaping its growth. Additionally, the included opportunity analysis on the hotel gift card market underlines untapped corners for aspiring players. The report on the hotel gift card market also offers a holistic view of the incremental opportunity, which can further help readers to make effective decisions for the growth of their businesses.

All the stakeholders in the hotel gift card market can rely on the data offered in this report to make critical decisions. Moreover, the information offered in this report also can help new market entrants expand their bases in the hotel gift card market.

The report elaborates on both, the historical and current trends shaping the market. The performance journey of the hotel gift card market has been drawn and analyzed to make lucrative opportunities in the market evident to readers. The competitive landscape presented in the hotel gift card market report gives a detailed outlook of the profiles of key companies operating in the market, along with their differential strategies and key focus areas.

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.

Product Type

  • Universal Accepted Open Loop
  • Hotel Closed Loop
  • Miscellaneous Closed Loop
  • E-Gifting

Application

  • Stays
  • Holiday Packages
  • Bar & Spa Services
  • Meeting & Events
  • Sports Activities
  • Travel & Transportation
  • Others

Price Range

  • High (Above 3,000 US$)
  • Medium (1,000-3,000 US$)
  • Low (0-1,000 US$)

End User

  • Business
    • Small and Medium Enterprises
    • Large Enterprises
  • Individuals

Sales Channel

  • Online
  • Offline

Region

  • North America
  • Latin America
  • Europe
  • South Asia
  • East Asia
  • Oceania
  • Middle East & Africa (MEA)

Hotel Gift Card: Key Questions Answered in Report

The research study on the hotel gift card market offers inclusive insights about the growth of the market in the most comprehensive manner. Key insights offered in the hotel gift card market report answer some of the most salient questions that assist stakeholders in gauging all the emerging possibilities.

  • How is the outbreak of the coronavirus pandemic impacting the growth of the hotel gift card market?
  • What are the key trends that are constantly shaping the growth of the hotel gift card market?
  • Which are the prominent regions that offer plentiful opportunities for players in the hotel gift card market?
  • What are the differential strategies adopted by key players to hold a significant share in the global hotel gift card market?

Hotel Gift Card Market: Research Methodology

A unique and promising research methodology forms the base of the hotel gift card market report for the forecast period. This report has been prepared after a comprehensive analysis of market events, and riveting insights have been compiled meticulously. The research methodology for the hotel gift card market report is a two-step process, comprising primary and secondary research. Key stakeholders such as suppliers, service providers, and experts of several designations, including executive vice presidents, directors, technical advisors, GM marketing professionals, and sales professionals have been interviewed. Secondary sources referred to obtain information include investor presentations of manufacturers, World Bank, IMF, and other credible sources.

Companies covered in Hotel Gift Card Market Report

  • Amazon.com Inc.
  • Blackhawk Network Holdings, Inc.
  • MakeMyTrip Limited
  • Avani Hotels & Resorts Limited
  • Anantara Hotels, Resorts & Spas
  • Travelgift.cards
  • Toga Far East Hotels
  • Accor
  • Expedia Group
  • Arp-Hansen Hotel Group
  • Valencia Hotel Group
  • FabHotels
  • Taj Hotels
  • Qwikcilver Solutions Pvt. Ltd.
  • Other Players 
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