Hotel Gift Cards Market Size, Share, Growth, And Industry Analysis By Type (Open Loop, Closed Loop, and E-gifting) By Application (Accommodation, Delicacy, Spa Service, and Others) and Regional Forecast to 2032

Updated On: 15 April 2024

Report Overview

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The global hotel gift cards market sizewas USD 1283.25 million in 2022. As per our research, the market is expected to reach USD 2054.55 million by 2028, exhibiting a CAGR of 8.16% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the hotel gift cards market growth and demand returning to pre-pandemic levels once the pandemic is over.

Are you looking for the ideal present for a friend or member of your family who enjoys traveling? Gift certificates for hotels are a great choice! These practical cards are perfect for any occasion because they let recipients schedule a stay at their preferred hotel. With more hotels providing these practical cards, the market is rising. It comes in two primary varieties: those dedicated to one hotel chain and those used at several different establishments. The former gives more flexibility and may be used at several properties, making it perfect for frequent travelers with a particular hotel brand.

One advantage of hotel gift cards is they frequently work with other special offers and discounts, including senior or AAA rates. This makes them a wise option for travelers who want to cut costs on their upcoming vacation. Therefore, consider buying a hotel gift card if you're looking for a thoughtful and useful present for the traveler. You can be sure to find the ideal selection for your loved one's requirements and preferences among the wide range of products on the market today.

COVID-19 Impact: The Travel Restrictions and Lockdown Hindered The Market Growth

Although the market has seen unheard-of development in recent years, the COVID-19 epidemic has greatly impacted the sector. Gift card demand has decreased as a result of the travel restrictions and lockdowns, which have resulted in a dramatic drop in hotel occupancy rates. However, there is still hope for the market since hotels are figuring out how to innovate and adapt to these difficult times. Hotels have been promoting their gift cards to help their company during the pandemic. To provide clients more flexibility who might not be able to utilize their gift cards shortly, many hotels have also extended the expiration dates of their gift cards. In addition, hotels now provide virtual gift cards that can be ordered and used online, making it simpler for clients to give and receive gifts while lounging in the comfort of their homes. The market is anticipated to rebound as the world gradually recovers from the pandemic. They will become a common option for individuals organizing their next holiday as people are keen to travel again. Hotels can also take advantage of this chance by enticing clients with appealing offers and promotions to buy gift cards. Overall, the Hotel Gift Cards Market is ready for a return and will continue to play an important part in the hospitality industry despite the early difficulties brought on by COVID-19.

Latest Trends

"Offering Personalized And Unique Experiences To The Guests  Fuel Boosts Market Expansion"

With the most recent trend of providing visitors with personalized and distinctive experiences, the market is rising. Gift cards are now available from the hotels, which can be used for everything from spa services and fine dining to adventure sports and cultural activities. Giving visitors more flexibility and choice, the gift cards are not restricted to one hotel or chain but may also be used at other hotels and places. Due to technology development, hotels are implementing mobile apps and digital gift cards to provide seamless experiences for their visitors. The ability to buy gift cards online and send them via email or messaging services makes it simpler for visitors to treat friends or family to a special occasion. Hotels are also forming partnerships with various platforms and marketplaces to broaden the appeal of their gift cards and draw in more customers. The newest trend in hotel gift cards also emphasizes social responsibility and sustainability. Today, many hotels provide gift certificates that benefit regional nonprofits and environmentally friendly programs. To make their stay more powerful and meaningful, guests can opt to give a portion of the value of their gift cards to a charity or social cause.

Segmentation

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• By Type Analysis

The hotel gift cards market can be segmented into open loop, closed loop, and e-gifting. Among these, the open loop is projected to experience rapid growth through 2028.

• By Application Analysis

The market can be divided based on application into accommodation, delicacy, spa service, and others. Accommodation is expected to hold the most significant hotel gift cards market share in the upcoming years.

Driving Factors

"The Convenience And Flexibility Offered By Gift Cards And The Rise Of E-Commerce Fuels Propels the Market Expansion"

The market is flourishing, and many important elements fuel this growth. First, gift cards are a desirable alternative for consumers and businesses due to their simplicity and flexibility. Gift cards make it simple for consumers to buy and give hotel experiences and stays, making them ideal for birthdays, anniversaries, and other special occasions. Second, with the growth of e-commerce, selling gift cards online is now simpler than ever for hotels, reaching a larger market and boosting revenues. Several hotels also provide guests who buy gift cards with special offers and discounts to encourage their use.

"The Current Trend Of Experiential Gifting Fuels the Market Growth"

The current trend of experiential gifting is a significant factor driving the market. Instead of typical monetary gifts, more and more individuals are searching for unforgettable experiences and memories to share with their loved ones. Gift cards for hotels give people the ideal option to treat friends and family to a magnificent vacation or memorable experience. The convenience, adaptability, and capacity to provide distinctive experiences are the main reasons the market is flourishing. We anticipate continuing growth in this interesting sector as more hotels adopt this trend and provide creative giving alternatives.

Restraining Factors

"The Lack Of Awareness Among Consumers And The Competition From Other Gift Card Options Hinders The Market Growth"

The market is expanding at a remarkable rate, and this growth is anticipated to continue in the years to come. The market still confronts significant restraints that could impede its growth, despite its potential for expansion. The lack of customer knowledge is one of the biggest problems the hotel gift card market faces. Many people still need to discover the idea of hotel gift cards and how they function. Due to this, it is challenging for companies to market their goods and for buyers to comprehend the benefits they provide. The competition from other gift card possibilities is another thing that prevents the market for hotel gift cards from expanding. It might be challenging for hotel gift cards to stand out and draw customers because so many other gift card options are on the market.

Additionally, some customers might favor different gift cards that provide a larger variety of possibilities, such as those that can be used at various stores or restaurants. Security issues may also be a hindrance to the expansion of the market for hotel gift cards. Gift cards are frequently seen as an easy target by con artists, which can undermine consumer faith in the brand and the product. Businesses must be proactive in implementing robust security measures to prevent such incidents. Overall, while the Hotel Gift Cards Market has immense potential, businesses need to address these restraining factors to ensure sustained growth and success in the long run.

Regional Insights

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"North America to Dominate Market Due to The Convenience And Flexibility Offered By Gift Cards And The Rise Of E-Commerce Fuels"

Between 2022 and 2028, the hotel gift cards market will be dominated by North America. Factors driving the market growth in this region include the convenience and flexibility offered by gift cards and the rise of e-commerce fuels.

Additionally, the market is anticipated to experience the fastest growth in European and Asian countries (India, China, Japan, and South East Asia). The current trend of experiential gifting fuels market expansion.

Key Industry Players

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Market Players Profiled

• Hyatt (U.S.)
• Airbnb (U.S.)
• Accor (France)
• Expedia Group (U.S.)
• IHG Hotels & Resorts (U.K.)
• Four Seasons Hotels and Resorts (Canada)
• Marriott International (U.S.)
• Choice Hotels International (U.S.)
• Wyndham Hotels & Resorts (U.S.)
• Hilton (U.S.)
• Best Western (U.S.)
• Radisson Hotel Group (Belgium)

Report Coverage

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.