Report Overview

The shift in consumer behavior towards preferring digital-first interactions, and the desire for convenience and personalization as technology becomes an integral part of our day-to-day lives, has steered the hospitality industry towards the adoption of guest-facing technology.

Hotel operators have made a conscious effort to advance their tech stack to keep up with new customer demands and advanced technologies. According to a recent study by Hotel Technology, 73% of guests surveyed are likely to return to a hotel that meets their technology needs, highlighting the significance of technology in guest satisfaction.

Although slow at first, the advent of the COVID-19 pandemic called attention to the importance of contactless guest-facing solutions, making it imperative for companies to adopt the right technology to create end-to-end digital experiences for guests. While digitalization gained momentum during the pandemic, there is still a lot more potential for growth.

The guest-facing tech landscape is diverse. We have identified 5 categories of tech offerings available for hotel operators namely, Guest Apps and In-Room Tech, Virtual Concierge, Guest Messaging and Chatbots, Digital Check-Ins and Kiosks, and Keyless Entry. Guest Apps and In-Room Technology is the most popular category with the highest market penetration and potential investment in comparison to the Virtual Concierge Software which is the least adopted category. This report provides a detailed discussion of the vendor landscape, market penetration, and market size of each of these tech categories.

Data in this report is accurate as of November 2022. For the latest updated information, Skift Research subscribers can access our Hotel Tech Benchmark dashboard, which is updated periodically as we collect more data from hotel tech vendors.

What You'll Learn From This Report

  • Total revenue potential of guest-facing tech solutions
  • Revenue distribution for guest-facing tech vendors
  • Current and future growth potential of each tech category expressed in USD
  • Total market penetration for each tech category
  • Total market penetration for vendors under each tech category basis total number of hotels and hotel rooms they service

Executive Summary

Adoption of technology in the hospitality industry pre-dates the pandemic, but guest-facing technology has observed great interest from hoteliers since the onset of the pandemic, to keep up with evolved consumer demand.

Most hotel companies have taken a step towards accepting technology as an enabler of efficient operations and seamless guest experiences, but it still continues to have a lot more unused potential. 

The following categories of guest-facing technology are available to hoteliers:

Guest Apps and In-Room Tech: This is the most popular guest-facing tech category with an unused revenue potential of $2.4 billion and 11% market penetration; the highest among all categories. Although popular, a lot of hotel startups are moving into favor of web apps since whether guests would prefer to download an app for a hotel they stay at once or twice a year remains questionable. 

Virtual Concierge: The Virtual Concierge tech category is not expected to drive significant investment in the upcoming years. Currently, it has the least market penetration at 1%. This is a pricey investment for hotels, where integration to other systems remains key.

Guest Messaging and Chatbots: Customer service response times play an important part in guest satisfaction. Direct messaging and chatbots help attend to simple requests and share information providing service for 24 hours. They help tackle the issue of labor shortage. This category currently has 5% market penetration but is one of the most popular potential tech investments in the upcoming years.

Digital Check-In and Kiosks: Digital check-ins are often built-in with guest apps or concierge softwares or Property Management Systems. This technology was pioneered years ago and has 8% market penetration. Kiosks are convenient but cost approximately $500 to $600 per device with the additional maintenance costs. Kiosks are ranked at one of the top upcoming tech investments in the sector.

Keyless Entry: There are multiple opinions surrounding this tech category which is why only 3% hotels worldwide facilitate keyless entry. While most vendors use the Bluetooth Low Energy technology to allow opening doors using smartphones, it is not always an economical choice for hotels.There are vendors using alternate technologies such as near-field communication and WiFi enabled locks. Hoteliers must choose which technology suits them best since this is a long term investment.  


Digitalization of Guest Experiences

The shift in consumer behavior towards preferring digital-first interactions, and the desire for convenience and personalization as technology becomes an integral part of our day-to-day lives, has steered the hospitality industry towards the adoption of guest-facing technology. 

A survey conducted by Skift and Oracle Hospitality to better understand hotelier and consumer expectations for hospitality technology by 2025 shows that close to 30% of travelers are “very interested” in staying at a hotel that has automated messaging abilities or provides customer service support using mobile devices or kiosks. Almost 48% were “somewhat interested” in the idea, while acknowledging that this depends on the nature of requests. 

Hotel operators have made a conscious effort to advance their tech stack to keep up with new customer demands and advanced technologies. According to a recent study by Hotel Technology, 73% of guests surveyed are likely to return to a hotel that meets their technology needs, highlighting the significance of technology in guest satisfaction.

Although slow at first, the advent of the COVID-19 pandemic called attention to the importance of contactless guest-facing solutions, making it imperative for companies to adopt the right technology to create end-to-end digital experiences for guests. While the implementation of guest-facing tech gained momentum during the pandemic, there is still a lot more potential for growth. 

Tech Spending On the Rise Again as Demand Returns

Naturally, hotel IT budgets have struggled during the pandemic, but many hotels are now addressing this pain point, and 66% of those surveyed in the 2022 Lodging Technology Study  expect an expansion in IT budgets in the upcoming years. There is also a slight shift in budget allocation with more focus on implementing new solutions and investing in research and development. 

Surveys conducted since the beginning of the pandemic show that key operational, revenue, and distribution software such as the Property Management System (PMS), Central Reservation System (CRS), and Revenue Management System (RMS) have been driving technology investments, including more upgrades and increased switching of tech vendors. Guest-facing tech categories, however, are also top of mind with hotel operators.

As was the case before the pandemic, integration of these systems with the diverse systems already in place remains key. 47% of hoteliers surveyed expressed that this has contributed to the slowing down of tech uptake in hotels. Although technology has become a competitive benchmark for hotels, the above survey showed that 31% of hospitality organizations are still resistant to technology or change. 

Guest-facing tech in hotels is a growth area which has witnessed an uptick in interest from hoteliers and guests in the last few years. Growing consumer demand for tech solutions has led to multiple “emerging” tech categories moving towards becoming “essentials” to the hotel tech landscape.

Growing Interest and Investment

We are seeing a lot of investment in the guest-facing tech space from companies such as channel manager Siteminder with its acquisition of guest app GuestJoy. With this acquisition, Siteminder can start offering hoteliers the opportunity to drive upsells and direct guest acquisition through digitized guest communication. 

Similarly, property management system Cloudbeds acquired Whistle, a guest messaging solution, with the purpose of enhancing guest engagement by leveraging data collected in the PMS. Medallia acquired Zingle to enable real-time feedback and action using the multi-channel messaging tool. 

Investors are also showing their interest. Canary Technologies raised $30 million in Series B funding to accelerate the modernization of their guest-facing tech offerings. Customer experience clearly is at the center of digital transformation and guest-facing technology is on its way to becoming a “core” part of efficient hotel operations.

Does Tech Make Interactions Impersonal?

There has always been the question from hoteliers whether excessive deployment of technology would lead to the hospitality industry losing human interactions. 

Today the discussion seems to be moving more towards stressing how technology in hotels should only be a solution to improve efficiency and enhancing guest experiences. It should allow hotel staff to engage in more meaningful interactions with guests, rather than performing mundane tasks which can be taken over by a tech solution. 

It is no secret that the industry is struggling to find and retain skilled labor. Vacancy rates in Europe are at an all time high, as per data by Eurostat. The World Travel & Tourism Council (WTTC) predicts that U.S. staff shortages in the hospitality sector will continue beyond 2022. Technology can relieve some pressure in this climate, although a survey by Skift and Oracle Hospitality shows that the human-centered approach to hospitality is not at threat. 

When asking 600 hoteliers about the services their hotel will be offering in the next three years, and how these services will be offered, 82% indicated that this will change significantly. However, when the same hoteliers were asked about staff levels over the next three years, only a fifth said that this would change. While hotel operations, and guest services and interactions might have changed, and will continue to change, this does not necessarily equate to the reduction of staffing levels.

Technology has become a significant part of people’s day-to-day lives and is here to stay.

Adopting tech can help curb staff turnover and add value to available jobs by reducing the need for menial jobs such as check-ins and check-outs, answering calls, taking requests, etc. 

A recent poll suggested that 52% of people switching industries are doing so for different work settings, 30-45% for better pay and benefits, and 16-19% for the flexibility of schedule and remote work opportunities. This shows that the sector must look at a different approach of delivering services. 

With the right balance, tech solutions will continue to act as enablers to better service standards and efficiency and hospitality will stay a people-centric industry.

The Guest-Facing Tech Landscape

As per Skift Research calculations, guest-facing tech in the hospitality industry has the potential to become a $6 billion tech category. 

The guest-facing technology landscape consists of the following categories: 

  • Guest Applications (Apps) and In-Room Technology
  • Virtual Concierge
  • Guest Messaging and Chatbots
  • Digital Check-in and Check-In Kiosks
  • Keyless Entry

According to our research, Guest Apps is the most popular category. It has the highest penetration by number of rooms. 

Although guest messaging abilities and chatbots have lower penetration, the convenience of having this feature was highlighted during the pandemic, especially for simple guest requests. Therefore, they have become some of the top categories hoteliers are looking to implement. Keyless entry has slower adoption, which is likely due to the significant capital investment required and some lingering issues with the technology. 

Revenue Streams

Most guest-facing tech vendors operate with a SaaS (Software as a Service) model, based on  a set subscription fee. The subscription fees are generally charged using tier-based pricing where hotels can choose between multiple tiers offering a variety of features based on their needs. Subscription fees make up for 79% of the revenue generated by guest-facing tech vendors included in this study. Some vendors tend to include installation and integration fees as a part of the subscription fee, which is why contribution from these revenue streams is rather low. 

Some companies such as CheKin for example, which offers digital check-in solutions, work with a licensing model. Vendors such as Stasher and Boddy, on the other hand, which are specialist concierge services, charge fees largely on a commission basis at the time of booking, which is accounted for in the “Other” revenue stream. 

Growing Demand for Guest Apps

COVID-19 popularized the use of QR codes, which smartphone users can scan with their phone camera, automatically taking them to a website, app, or a payment portal. Hotel guests can scan QR codes to open the check-in website, or to go to the app store to download the hotel app. App technology has been around for more than a decade, but it has always been the question whether people are willing to download an app if they only stay at a hotel once or twice. A select few major hotel chains, often with strong loyalty programs, have been very successful in building their apps and using them to engage with their customers beyond the hotel stay.

With strong brand recognition, CitizenM adopted an app-first strategy during COVID, promoting the app as a way for its regular guests to have the best experience. Casper Overbeek, director of customer experience at CitizenM told Skift Research before that: “the big challenge is not only getting guests to download the app, but also how you stay on the first three or four screens on the phone.” The company does not solely rely on app downloads, and provides tablets in each bedroom so guests can access the features nonetheless.

We see many hotel tech startups moving away from app technology in favor of progressive web apps, a technology which has become faster over the past few years, boosting its uptake. A progressive web app is nothing more than having a native app experience in a web browser, including notifications and offline availability.

That is not to say that apps have no value. They offer a way for hotels to offer all their services in one place, and potentially allow for better outreach and data collection. One interesting development which might sway hoteliers and guests one way or another is app clips. Tristan Gadsby of Alliants called it a “middle ground” between a full app download and a website when speaking with Skift Research in the past. Using a QR code, users can launch a small snippet of an app without the need to download the full app. This is a great way for hotels to introduce their app to their guests, and offer a limited number of services that live in their app without forcing guests to download the full app.

Growing Importance of Guest Apps and In-Room Technology

Apps and smart hotel rooms have become a vital part of the guest experience for hotels, providing a convenient solution in terms of information sharing as well as operational functionality. Both of these tech categories allow guests easy access to services and amenities across hotels.

Hotel apps provide features such as in-app bookings, property information and room layouts, loyalty points, payment options, information on other hotel offerings, room controls, messaging prior and during the stay, special requests, etc. They provide an opportunity for personalized communication, quicker service, and problem resolution. 

Most popular in-room technologies in smart hotel rooms include iPads or in-room tablets for special requests and room service ordering, service robots, in-room controls such as temperature, television, blinds, and lights using an app, virtual assistants such as Alexa or Siri, etc. 

A pre-pandemic study by Openkey suggests that 63% of guests expect hotels to have a customized app. 50-60% guests expect smart thermostats and lighting and only 24-27% of them expect virtual assistants and in-room tablets. These expectations have grown considerably since the start of the pandemic. As of November 2022, Hilton reported that the hotel brand has approximately 74,000 “Connected Rooms” worldwide which offer digital interfaces to control in-room lighting, temperature, and entertainment.

An Under-Penetrated Tech Category

At Skift Research, we estimate that only 11% of hotels and 25% of hotel rooms worldwide are supported by a hotel app or use some kind of in-room technology. Proprietary apps by hotel brands dominate this space. Almost 60% of hotels using an app are part of a hotel chain such as Hilton, Marriott, or Wyndham. Third-party vendors such as Revinate, Intelity, Duve, or Stay have guest apps as one of their tech offerings and have mostly smaller hotel chains and independent hotels as clients. 

According to Skift Research calculations, the total revenue generated by guest apps and in-room technology in 2019 was approximately $293 million inclusive of both proprietary apps by hotel brands as well as third-party vendors. This landscape has an unused revenue potential of $2.4 billion. 

These revenues are estimated on the basis of pricing information available through vendor surveys, websites, and franchise agreements. The average price paid by hotels is multiplied by the estimated total number of hotels and rooms worldwide. Further information on the methodology used can be found at the end of this report. 

While the pandemic accelerated the adoption of technology, it continues to remain an underpenetrated tech landscape. Speed and ease of use are the most important factors for mobile shoppers. The larger hotel brands with multiple properties across continents offer standardized apps across all their hotels which are in control of the hotel chain. Continued investment to keep up with the latest technologies and additional features carried out by these brands would comparatively be an expensive investment for companies with a handful of properties or independent hotels.

Leading Hotels of the World (LHW) is a company that represents more than 400 independent hotels worldwide and offers marketing and distribution services to the hotels while maintaining their individual identity. This allows the company an opportunity to produce an app which would otherwise be too expensive for a single independent hotel.

Hotel companies such as Oyo and Treebo Hotels’ work on a unique business model which involves bringing small independent budget hotels under a franchise.These hotels too can avail the services of the app produced by these companies which would otherwise not be economically feasible.

Top 10 Vendors

The largest 10 vendors make up almost the entire market for hotel apps and in-room technology. Revinate is the largest third-party provider, being used by an estimated 25,000 hotels. Following Revinate are all the major hotel chains which have their own proprietary apps.  

Top 10 Vendors make up ~97% of total market share by hotel rooms

VendorsBaseHotelsHotel ShareRoomsRoom Share
1RevinateU.S.25,0004.2%2,000,0006.7%
2MarriottU.S.8,0001.3%1,423,0444.7%
3HiltonU.S.6,2151.0%983,4653.3%
4IHGUK6,0281.0%884,8202.9%
5WyndhamU.S.9,2001.5%813,0002.7%
6AccorFrance4,2000.7%617,4002.1%
7HyattU.S.1,1500.2%300,0001.0%
8IntelityU.S.2,0000.3%200,0000.7%
9IreckonuNetherlands2790.0%77,0600.3%
10NoniusPortugal6050.1%69,8320.2%
TOTAL62,67710.4%7,368,62124.6%

Concierge Services in the Tech-Era

Outsourcing concierge services is not a foreign concept, however, the pandemic and increasing penetration of smartphones has increased the offering of digital concierge services. 

Today’s customer experience tools tend to be efficient solutions that use AI technology to attend to guest requests as quickly as possible, ensuring a seamless guest experience if implemented well. It can coordinate special requests and track their status, share information on in-house amenities, make travel arrangements, recommend nearby attractions and restaurants as well as help making reservations. 

Some Virtual Concierges also offer features such as digital check-ins and check-outs, payment assistance, and gathering customer feedback. If integrated well with other systems used in a hotel, a virtual concierge can help save time spent by the front desk staff and drive greater customer satisfaction and loyalty. 

According to a survey by Hotel Tech Report, digital concierges were one of the most popular investments in 2020, especially since digital communication gained preference over the face-to-face alternative. Having said that, as per Skift Research estimations, only 1% of hotels worldwide currently use a digital concierge, equating to approximately 700,000 rooms. 

Virtual concierge solutions have a total market potential of $1,964 million out of which the current market is only $28 million. Although having a virtual concierge is convenient, it can be a pricey investment as it needs to be integrated with many other systems to work effectively. A lot of hotels prefer the traditional methods of dealing with guest requests, or have an outsourced concierge service. Tiered pricing is the most common pricing model, whereas some digital concierges use a pay-per-usage strategy. Hoteliers must weigh these costs against the benefits including reduced staff requirements and streamlined processes for guests when implemented well.  

Top 10 Vendors

The largest 10 vendors which almost make up the entire market for Virtual Concierge Software too have a very low market share. This tech category is mainly supported by third-party vendors. Mews has the highest market penetration in terms of rooms but Alice is the largest player in this space, by the number of hotels serviced.

Top Vendors have low market share

VendorsBaseHotelsHotel ShareRoomsRoom Share
1Mews Online Guest ServicesNetherlands1,7000.3%209,1000.7%
2AliceU.S.2,5000.4%125,0000.4%
3RevinateU.S.1,0000.2%80,0000.3%
4NoniusPortugal6050.1%69,8320.2%
5StasherUK8000.1%60,0000.2%
6DuveIsrael7000.1%45,0000.2%
7Oscar by SilverbyteIsrael4000.1%40,0000.1%
8Alliants ConciergeUK2440.0%35,9730.1%
9Nuvola ConciergeU.S.540.0%18,4210.1%
10Boddy Fitness PassSwitzerland1200.0%8,0000.0%
TOTAL8,1231.4%691,3262.3%

Digital Communication with Chatbots and Guest Messaging

Travelers no longer wish to wait in line to make requests or wait for a response to emails. The fast-paced world is penetrating the hotel industry, and instant messaging services are becoming an increasingly popular way of communicating with hotel staff. 

The messaging and chatbot categories, with especially the latter often powered by AI technology, have matured over the years. Vendors can now provide a good conversational experience to users, just like human agents would provide. AI tech allows hotels to communicate in multiple languages. Hotels can make personalized recommendations and adapt communication based on information gathered, using machine learning capability. 

Customer service response times play a key role in customer satisfaction, and hotel chatbots have a greater capability of meeting customer expectations. Simple requests such as room service or housekeeping requests can be processed much faster with 24-hour support. Therefore, a lot of hotels switched to this during the pandemic. These services are often integrated with the digital concierge or mobile apps. 

As per Skift Research calculations, this tech category has a 5% penetration as of now, which is more than 3 million rooms. Whistle by Cloudbeds and Kipsu are the largest vendors in this category and contribute towards almost 50% of the total market share. The hospitality industry has vast unused potential of $1.1 bn. With growing customer expectations of round-the-clock service, a lot of hotels are looking at adopting a chatbot or messaging system to be able to attend to requests and questions rapidly at any time of day. This can also help reduce the burden of hiring skilled labor for carrying out banal tasks.

Hoteliers should also look at integrating this system with their in-house operations software to ensure requests are communicated to the right department in a timely manner. This requires upfront investment, but provides an opportunity to reduce operating costs and time in the long run. 

Top 10 Vendors

Whistle and Kipsu account for more than 50% of market share by rooms.

VendorsBaseHotelsHotel ShareRoomsRoom Share
1WhistleU.S.10,0001.7%1,000,0003.3%
2KipsuU.S.3,4000.6%675,0002.3%
3WyndhamU.S.5,5200.9%487,8001.6%
4Mews Online Guest ServicesNetherlands1,7000.3%209,1000.7%
5IntelityU.S.2,0000.3%200,0000.7%
6AsksuiteBrazil1,3000.2%150,0000.5%
7HiJiffy Booking AssistantPortugal1,6000.3%150,0000.5%
8ALICEU.S.2,5000.4%125,0000.4%
9RevinateU.S.1,0000.2%80,0000.3%
10NoniusPortugal6050.1%69,8320.2%
TOTAL29,6254.9%3,146,73210.5%

Digital Check-In and Check-In Kiosks

Mobile-first check-ins are nothing new in the travel industry. The airline industry has used online check-in for flights for many years. Until the start of the pandemic, however, this feature had only limited penetration in the hotel sector. 

The hotel check-in process is characterized by hotel staff as capturing personal and payment information about the guest, many of which could be done before arrival with more secure systems than on offer today. Customers see value in being able to bypass lobby check-ins and secure a room ahead of time, as well as make room requests prior to arrival. The pandemic only highlighted the importance of contactless or self-service check-ins. 

Digital check-ins are generally built into hotel guest apps or a concierge software. A lot of PMS vendors such as Mews or Agilysys for example offer this feature as a part of their PMS. For large hotel brands such as Hilton, Marriott, and Hyatt the digital check-in option is built into the app itself. Mobile check-in and self-service check-in capabilities have become increasingly important to ensure a seamless guest experience. 

As per Skift Research calculations, 8% hotels worldwide offer digital check-in capabilities or have check-in kiosks, which means approximately 6.1 million rooms can be digitally checked into. Kiosks are convenient and have a lot of advantages, but they come with an upfront cost of approximately $500 to $600 per device with the additional maintenance costs. 

It is also important for hotels to consider the type of clientele they would cater to before installing a kiosk. While they are user-friendly, not all guests may find it comfortable to check in using a kiosk. Digital check-in functions are generally an additional feature for an additional price that hotels can choose while choosing a PMS or developing a guest app. 

Top 10 Vendors

VendorsBaseHotelsHotel ShareRoomsRoom Share
1MarriottU.S.8,0001.3%1,423,0444.7%
2HiltonU.S.6,2151.0%983,4653.3%
3IHGUK6,0281.0%884,8202.9%
4WyndhamU.S.9,2001.5%813,0002.7%
5AccorFrance4,2000.7%617,4002.1%
6AgilysysU.S.2,5000.4%325,0001.1%
7HyattU.S.1,1500.2%300,0001.0%
8Mews Online Guest ServicesNetherlands1,7000.3%209,1000.7%
9IntelityU.S.2,0000.3%200,0000.7%
10HotelbirdGermany1,6000.3%80,0000.3%
TOTAL42,5937.1%5,835,82919.5%

Keyless Entry

Keyless entry allows guests to access their rooms using their smartphones. The advent of this tech category has made check-in processes seamless since guests can make reservations, choose a room, and directly enter without having to visit the hotel’s reception. As per OpenKey, 54% of guests expect mobile keyless entry into hotel rooms and this tech category drives an average improvement of 7% in guest satisfaction scores making it considerably impactful. 

This feature is often integrated within the guest apps, however, room locks have to be customized in order to support the software. The underlying technology called BLE (Bluetooth Low Energy)  allows devices to be controlled remotely using smartphones. Large hardware vendors in this tech landscape such as Assa Abloy, Salto Systems, and Dormakaba provide both hardware and software solutions. They also integrate with third-party vendors specialized in offering hotel industry technology.  

As per Skift Research estimations, only 3% hotels worldwide, which is 2.3 million hotel rooms allow keyless entry. 

Hilton has made great advancements in the keyless tech category, reporting 5,900 digital key hotels which is more than 90% of their portfolio. As of November 2022, the company recorded 54 million digital key downloads and 228 million doors opened using digital keys. The digital key share concept allows more than one guest to access the room’s digital key. Other hotel companies are making slow progress towards implementing keyless entry systems. As per a recent survey by Hotel Tech Report, keyless entry has made it to the top 12 software categories that are booming in the hospitality industry. 

The penetration so far has been low owing to the high capital expense it involves. As per Marriott franchise disclosure agreements, compatible locks cost between $75 to $220 per lock. Franchisees are also required to pay a software and support fee ranging from $8 to $11 per room per year and purchase a separate server to store guest entry information, estimated to cost between $10,000 and $16,000 making this an expensive investment for standalone or independent hospitality players. 

Pure tech vendors such as Zaplox and Flexipass specialize in software integrations for hotels and can provide integrations with the hotel’s PMS as well as an app. Keyless entry is a great long-term investment, but hoteliers must choose which tech solution works best for them. Keeping up with the constant introduction of new features and advanced technology may not be economical for all hospitality players.

Top 10 Vendors

VendorsBaseHotelsHotel ShareRoomsRoom Share
1MarriottU.S.5,5000.9%979,0003.3%
2HiltonU.S.5,9001.0%933,6193.1%
3IntelityU.S.2,0000.3%200,0000.7%
4HotelbirdGermany1,6000.3%80,0000.3%
5IGreetU by IreckonuNetherlands2790.0%77,0600.3%
6NoniusPortugal6050.1%69,8320.2%
7Alliants Guest AppUK220.0%3,6490.0%
TOTAL15,9062.7%2,343,1607.8%

Hotel Tech Benchmark Methodology

The Hotel Tech Benchmark by Skift Research is based on a mix of information provided by hotel tech vendors and proprietary data calculations. Participating companies have provided extensive information about their operations,

including:

  • Historic and current revenues
  • Revenue Streams
  • Historic and current employee count
  • Geographic Coverage
  • Product breakdown, including software functionality, launch date, pricing models, and integrations
  • Number of hotels and rooms per product

Market sizes and market potential are calculated bottom-up, using information from vendor input as well as publicly available information on company websites and in franchise disclosure agreements. 

The total size of the hotel industry, which informs our ability to calculate market sizes, is a point of contention in the industry. We have used industry sources and our own estimates to determine the size of the hotel industry in terms of hotels and rooms.

There are many estimates of the number of hotels in the world, ranging between half a million and a million. We collected information from different sources to estimate the TOTAL NUMBER OF HOTELS WORLDWIDE AT 600,000.

This is much higher than the often-quoted STR figure, which is below 200,000. The STR estimate excludes properties with less than 10 rooms, and while known for its strong coverage of highly branded markets like the U.S., struggles to capture more independent markets in Europe and Asia.

Therefore, other sources were taken into consideration. Euromonitor International, a market research company which includes coverage on independent and chained hotels for 100 countries, estimates the market is just short of 600,000. Expedia asserts it has more than 600,000 properties on its platform, although this is likely to include more than just hotels.

Data on the number of rooms also shows extreme differences between sources. STR asserts that the average hotel has 92 rooms, while Euromonitor International puts this figure at 55. As both disregard small properties to different degrees, with STR particularly having limited coverage of independent and smaller hotels, we estimate that the average hotel has 50 rooms, to TOTAL 30 MILLION ROOMS WORLDWIDE.

Revenue streams are calculated using input from participating vendors, taking into account the size of each vendor and their revenue breakdown. As participation increases, this data is expected to change.

Total Vendor List

VendorsCategoryBaseHotelsHotel ShareRoomsRoom Share
RevinateGuest Apps & In-Room TechU.S.25,0004.2%2,000,0006.7%
MarriottGuest Apps & In-Room TechU.S.8,0001.3%1,423,0444.7%
HiltonGuest Apps & In-Room TechU.S.6,2151.0%983,4653.3%
IHGGuest Apps & In-Room TechUK6,0281.0%884,8202.9%
WyndhamGuest Apps & In-Room TechU.S.9,2001.5%813,0002.7%
AccorGuest Apps & In-Room TechFrance4,2000.7%617,4002.1%
HyattGuest Apps & In-Room TechU.S.1,1500.2%300,0001.0%
IntelityGuest Apps & In-Room TechU.S.2,0000.3%200,0000.7%
IreckonuGuest Apps & In-Room TechNetherlands2790.0%77,0600.3%
NoniusGuest Apps & In-Room TechPortugal6050.1%69,8320.2%
SuitePadGuest Apps & In-Room TechGermany8000.1%50,0000.2%
StayGuest Apps & In-Room TechSpain1,0000.2%50,0000.2%
DuveGuest Apps & In-Room TechIsrael7000.1%45,0000.2%
NuvolaGuest Apps & In-Room TechU.S.760.0%25,8500.1%
Crave InteractiveGuest Apps & In-Room TechUK2500.0%25,0000.1%
HotezaGuest Apps & In-Room TechCyprus5000.1%25,0000.1%
AeroGuestGuest Apps & In-Room TechDenmark2590.0%20,6840.1%
Alliants Guest AppGuest Apps & In-Room TechUK220.0%3,6490.0%
HotelwayGuest Apps & In-Room TechFinland20.0%3500.0%
Mews Online Guest ServicesConcierge & Guest ExperiencesNetherlands1,7000.3%209,1000.7%
AliceConcierge & Guest ExperiencesU.S.2,5000.4%125,0000.4%
RevinateConcierge & Guest ExperiencesU.S.1,0000.2%80,0000.3%
NoniusConcierge & Guest ExperiencesPortugal6050.1%69,8320.2%
StasherConcierge & Guest ExperiencesUK8000.1%60,0000.2%
DuveConcierge & Guest ExperiencesIsrael7000.1%45,0000.2%
Oscar by SilverbyteConcierge & Guest ExperiencesIsrael4000.1%40,0000.1%
Alliants ConciergeConcierge & Guest ExperiencesUK2440.0%35,9730.1%
Nuvola ConciergeConcierge & Guest ExperiencesU.S.540.0%18,4210.1%
Boddy Fitness PassConcierge & Guest ExperiencesSwitzerland1200.0%8,0000.0%
HiJiffy Virtual ConciergeConcierge & Guest ExperiencesPortugal4000.1%4,0000.0%
Trip Planner by SmartvelConcierge & Guest ExperiencesSpain510.0%3,8250.0%
Hotelway LivechatConcierge & Guest ExperiencesFinland70.0%1,4000.0%
Suitepad Lobby ScreenConcierge & Guest ExperiencesGermany500.0%1,0000.0%
WhistleGuest Messaging & ChatbotsU.S.10,0001.7%1,000,0003.3%
KipsuGuest Messaging & ChatbotsU.S.3,4000.6%675,0002.3%
WyndhamGuest Messaging & ChatbotsU.S.5,5200.9%487,8001.6%
Mews Online Guest ServicesGuest Messaging & ChatbotsNetherlands1,7000.3%209,1000.7%
IntelityGuest Messaging & ChatbotsU.S.2,0000.3%200,0000.7%
AsksuiteGuest Messaging & ChatbotsBrazil1,3000.2%150,0000.5%
HiJiffy Booking AssistantGuest Messaging & ChatbotsPortugal1,6000.3%150,0000.5%
ALICEGuest Messaging & ChatbotsU.S.2,5000.4%125,0000.4%
RevinateGuest Messaging & ChatbotsU.S.1,0000.2%80,0000.3%
NoniusGuest Messaging & ChatbotsPortugal6050.1%69,8320.2%
DuveGuest Messaging & ChatbotsIsrael7000.1%45,0000.2%
Alliants MessagingGuest Messaging & ChatbotsUK2440.0%35,9730.1%
Nuvola Guest ChatGuest Messaging & ChatbotsU.S.540.0%18,5000.1%
GuestEQGuest Messaging & ChatbotsU.S.3000.1%15,0000.1%
CitizenMGuest Messaging & ChatbotsNetherlands360.0%8,5450.0%
Hotelway ChatbotGuest Messaging & ChatbotsFinland750.0%5,0000.0%
MarriottOnline Check-In and KiosksU.S.8,0001.3%1,423,0444.7%
HiltonOnline Check-In and KiosksU.S.6,2151.0%983,4653.3%
IHGOnline Check-In and KiosksUK6,0281.0%884,8202.9%
WyndhamOnline Check-In and KiosksU.S.9,2001.5%813,0002.7%
AccorOnline Check-In and KiosksFrance4,2000.7%617,4002.1%
AgilysysOnline Check-In and KiosksU.S.2,5000.4%325,0001.1%
HyattOnline Check-In and KiosksU.S.1,1500.2%300,0001.0%
Mews Online Guest ServicesOnline Check-In and KiosksNetherlands1,7000.3%209,1000.7%
IntelityOnline Check-In and KiosksU.S.2,0000.3%200,0000.7%
HotelbirdOnline Check-In and KiosksGermany1,6000.3%80,0000.3%
IGreetU by IreckonuOnline Check-In and KiosksNetherlands2790.0%77,0600.3%
NoniusOnline Check-In and KiosksPortugal6050.1%69,8320.2%
DuveOnline Check-In and KiosksIsrael7000.1%45,0000.2%
CheKinOnline Check-In and KiosksSpain1,0000.2%40,0000.1%
HotezaOnline Check-In and KiosksCyprus5000.1%25,0000.1%
GuestStay by GuestlineOnline Check-In and KiosksUK2000.0%11,0000.0%
CitizenMOnline Check-In and KiosksNetherlands360.0%8,5450.0%
Alliants Guest AppOnline Check-In and KiosksUK220.0%3,6490.0%
MarriottKeyless EntryU.S.5,5000.9%979,0003.3%
HiltonKeyless EntryU.S.5,9001.0%933,6193.1%
IntelityKeyless EntryU.S.2,0000.3%200,0000.7%
HotelbirdKeyless EntryGermany1,6000.3%80,0000.3%
IGreetU by IreckonuKeyless EntryNetherlands2790.0%77,0600.3%
NoniusKeyless EntryPortugal6050.1%69,8320.2%
Alliants Guest AppKeyless EntryUK220.0%3,6490.0%