The hotel market - Italy (2025)

1.2 The global market

The global hotel, resort, and cruise line market is projected to be worth US$***.* billion in ****, growing at a compound annual growth rate (***) of **.* percent from **** to ****. This increase is driven byrising disposable income, especially in emerging markets such as China and India, where an expanding middle class can devote more resources to leisure travel and luxury experiences. A key phenomenon is the growing demand for experiential travel, where consumers seek unique and memorable getaways filled with immersive activities such as culinary tours, cultural immersions and outdoor adventures. This trend has prompted hotels and resorts to diversify their offerings with customized packages, creating tailor-made stays to meet the expectations of discerning travelers.[***]

Global market value of hotels, resorts and cruise lines World, ****-****, in billions of dollars (***) Grand View Research

Complementing this evolution is the strong emergence of wellness tourism, reflecting the growing focus on relaxation, health and mindfulness. According to the Global Wellness Institute, the market for this segment is set to more than double between **** and ****, with spending reaching $*** billion in **** and a forecast of $* trillion by ****. This quest for mental and physical balance has prompted resorts and cruise lines to integrate dedicated wellness services into their offerings, transforming ...

1.3 The European market

The European hotel market has performed well in recent years, despite economic and geopolitical uncertainties. In ****, the sector reached a total value of **.* billion euros, a figure slightly lower than the **.* billion euros in ****, but still indicative of a strong post-pandemic recovery. Estimates for **** show a significant increase, with an estimated value of ** billion euros, representing nearly ** percent growth over the previous year.[***]

European hotel industry market value Europe, ****-****, in billion euros (***) Hotel Tomorrow

TheUnited Kingdom and Germany are two of the major players in hotel development in Europe, accounting for more than one-third of the total expansion program in the period between **** and ****. This development is supported by ambitious plans to expand hotel infrastructure, with an expected increase in the number of rooms available to accommodate steadily growing tourist demand. The strong urbanization and centrality of cities such as London, Berlin and Munich are attracting steady flows of tourists and business travelers, solidifying these countries' position as key tourism and business hubs. InSouthern Europe, markets such as France, Spain and Italy are following a different trajectory, characterized by more limited development of new hotel facilities. This limited balance between supply and demand, coupled with an increase in incoming international ...

1.4 The Italian market

Market value:

Between **** and ****, the turnover of hotels and similar facilities in Italy grew by **.* percent, from **.* to **.** billion euros. In **** there was a **.* percent slump, with turnover reduced to **.** billion, followed by a gradual recovery to an estimated **.** billion by ****. Estimates for ****, again obtained using the ISTAT index on the turnover of hotels and similar establishments, predict a turnover of **.** billion.

Turnover of hotels and similar facilities Italy, ****-*****, € billion Istat *Estimate

The Italian hotel sector is showing a recovery, supported by strong demand both internationally and domestically. About ** percent of facilities report an increase in foreign tourists, mainly from Germany (***) locations. A further encouraging sign is the lengthening of the tourist season, with room occupancy rates reaching ** percent in July, ** percent in August and ** percent in September, exceeding **** levels. These figures reflect growing confidence among industry entrepreneurs, supported by robust demand and effective strategies to meet current challenges.

Main foreign tourist shares Italy, ****, in % Ansa

2.1 Demand in Italy

Italian tourism recorded a record recovery in **** with *** million arrivals and ***.* million presences, surpassing **** levels. These figures are crucial for the hotel sector, which absorbs a significant portion of these flows due to its ability to accommodate both Italian and foreign travelers.[***]

Arrivals in accommodation facilities Italy, ****-****, in millions Istat

In ****, significant differences in hotel preferences between residents (***) are confirmed. Foreign travelers largely preferred hotels of higher category: **.* percent of their stays were recorded in *- and *-star hotels, compared to **.* percent of Italian stays in this category.

Attendances in hotel establishments by category of establishment and residence of customers Italy, ****, in % Istat In contrast, Italians preferred *-star establishments and tourist-hotel residences, which accommodated **.* percent of their stays, compared with **.* percent recorded for international tourists. Attendances in hotel establishments by category of establishment and residence of customers Italy, ****, % Istat The high seasonality of demand, with peaks in summer and during holidays, means that hotels located in seaside and mountain areas are the most popular. **.* percent of trips in **** were for vacation purposes, with long stays (***) accounting for about**.* percent of total overnight stays. This indicates that hotels need to efficiently plan staffing and supply during the peak season to maximize ...

2.2 The Drivers of Demand: Booking Choices of Italians and Foreign Tourists

Booking choices in the tourism sector are strongly influenced by economic and seasonal factors, with a clear tendency to concentrate stays during the summer period. During summer ****, ** percent of Italians opted for hotels and resorts, confirming them as the preferred type of accommodation. However, this share remains lower than pre-pandemic levels, highlighting a change in preferences reflected in the increase of rental apartments, chosen in ** percent of cases, mainly as a more convenient alternative in response to the high cost of vacations.

Second homes, while declining slightly from ****, are still a relevant option(***). This shift toward more flexible options highlights how vacation costs and the need for customization of stays are becoming key drivers in travelers' choices. The difference between booking declarations in June and actual choices in September confirms this trend: many families changed their decisions close to departure, switching from hotels to apartments and second homes.

Accommodation facilities chosen Italy, ****, % Touringclub

Foreign tourists are also helping to shape demand, with a clear preference for hotels, chosen by ** percent of international guests, while only *.* percent opt for short-term rentals. This figure highlights how foreign visitors continue to appreciate Italy's traditional accommodation offerings, providing stability to the hotel sector. Their presence, ...

2.3 New demand trends

The year **** closes with positive results for thehospitality sectorin Italy, which has demonstrated a solid capacity for growth through the adoption of innovative strategies, increasing digitalization and a strong commitment to environmental sustainability. Despite structural difficulties related to the labor market, the sector has been able to respond to the challenges with an innovation-driven approach, marking another step toward an increasingly competitive and dynamic future.

According to data from Il Sole ** Ore, online bookings reached ** percent of total transacted business, generating a turnover of ** billion euros out of a total turnover of **.* billion euros. This represents a * percent increase over the previous year, highlighting how technology is taking on an increasingly central role in the management of accommodations and the consumption habits of tourists. The increased use of digital reservation systems and the adoption of automation and data analysis tools are confirmed as key levers for attracting customers and optimizing operational processes.

However, the sector faces a significant critical issue: the shortage of qualified staff and the strong presence of temporary and seasonal contracts, which affect more than ** percent of the workforce. Job insecurity and the difficulty in finding skilled personnel have a direct impact on the quality of services offered ...

2.4 Online search trends

Search interest for all search terms associated with the topic "hotel" in Italy over the period ****-**** shows growth from the initial value of ** in January **** to a peak of ** in July ****, an increase of **.* percent. Thereafter, the trend gradually declines, reaching its lowest point in November **** (***). This trend reflects a seasonality, with a greater focus in the summer months and a decline in the fall and winter periods.

The numbers represent search interest relative to the highest point on the graph in relation to the period indicated. A value of *** indicates the highest frequency of search for the term; ** indicates half as many searches. A score of *, on the other hand, indicates that not enough data were found for the term.

Search trends for the topic "Hotel" Italy, ****-****, index Google trends

The geographical distribution of search interest for the same topic shows a strong concentration in northern Italian regions, with Trentino-Alto Adige registering the highest interest (***) at the bottom.

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3.1 The market structure

Data on the number of active businesses in the "Hotels and similar facilities" sector show some stability in the number of businesses through ****, with an increase from **,*** businesses in **** to **,*** in **** (***). The decline continued in the next two years, reaching **,*** firms in ****. If the trend continued, the estimate for **** suggests a further decline, reaching **,*** enterprises.

Number of Active Businesses (***) Italy, ****-****, in number Istat; Companies Register

Analysis of the legal form of active enterprises in the "Hotels and similar facilities" sector shows a heterogeneous distribution. The highest share is represented by limited liability companies (***) stand at **.* percent. Finally, legal forms classified as "Other" cover just * percent, indicating a very limited spread of less traditional types of companies in this sector. Legal Form Active Companies - Ateco Code **.* Italy, ****, % Istat

he average annual number of employees in enterprises in the "Hotels and similar establishments" sector (***) between **** and **** highlights fluctuations due to market dynamics and global events. In ****, there were ***,*** employees, a stable figure reflecting a growth phase in tourism. In ****, the number of employees rose to ***,***, marking an increase of +*.** percent from the previous year, thanks to favorable domestic and international tourism demand. **** marked a drastic decline, with ***,*** employees, representing a -**.**% ...

3.2 Value Chain

The value chain in the hospitality industry represents the set of strategic and operational activities required to deliver a complete and satisfying guest experience, generating value for both the guests and the accommodation facility. These activities can be divided into primary activities and supporting activities.

Primary Activities

Marketing and Sales

Direct and indirect bookings: through online portals (***), official website or physical travel agencies. Promotion strategies: promotional campaigns, social media, loyalty and special offers. Revenue management: use of dynamic fare management systems to optimize revenue based on demand.

Reception and Check-in

Front office management: first impression with quick check-in, courtesy and helpfulness. Concierge: personalized services for tourist information, restaurants and local activities.

Hospitality and In-Room Services

Rooms: cleaning, maintenance and extra services (***). Catering: management of bars, restaurants and food offerings (***). Wellness and Entertainment: spa, gym, pool, recreational activities or organized events.

Checkout and After-Stay Service

Guest Feedback: collection of reviews and comments to improve services. Loyalty Programs: special offers to incentivize a return and rewards for repeat customers.

Support activities

Human resource management

Staff training: to provide quality service and technical skills for managing new digital tools. Selection and development: targeted recruitment and internal growth to improve productivity.

Information Technology

Management systems ...

3.3 Main actors

The following is a list of the main players operating in the market, with a detailed description of their respective activities and positioning. The actors are listed in descending order of turnover, in accordance with the data reported on Company Register. Through the description of each actor, it is possible to draw a clear and concise picture of the evolution of the industry, growth trends and strategies that have contributed to the positioning of these enterprises.

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4.1 The Offering

The hotel market's offerings are divided into different types of accommodations that meet different customer needs, with varying services and price positioning. Below is an overview of the main elements that make up the hotel market offerings.

Classification of hotels

Luxury hotels (***), double rooms of at least ** square meters with bathrooms of at least * square meters, daily maid service with afternoon tidying up, daily linen change, presence of restaurants, spas, swimming pools and other luxury amenities. High-end (***) hotels: These hotels ensure a high standard of comfort, with reception and bar service available for at least ** hours a day, staff speaking at least two foreign languages, double rooms of at least ** square meters with bathrooms of at least * square meters, daily housekeeping with afternoon rearrangement, daily linen change, and additional amenities such as restaurants, conference rooms, and fitness areas. Mid-range hotels (***): They offer a good balance between comfort and price, with reception operating for at least ** hours a day, staff who know at least one foreign language, double rooms of at least ** square meters with bathrooms of at least * square meters, daily housekeeping, linen change twice a week, and amenities such as bar open for at least ** hours, telephone and TV in ...

4.2 The prices

Hotel prices in Italy vary significantly by facility category, location, season and services offered. According to Trademark Italia's Italian Hotel Monitor, in the third quarter of **** (***) increased from ***.** euros to ***.** euros, marking an increase of*.* percent. This increase is mainly attributable to the recovery of business tourism and the influx of international tourists, particularly from the United States, who prefer high-end facilities.[***]

The rise of hotel rates in Italy in ****: trends, causes and future challenges

Data on average Italian hotel prices for the third quarter of **** show a clear and significant trend: a general increase in rates per night compared to the same period last year. Venice, with an average of about ***.** euros per night, continues to rank among the most expensive cities, registering a *.* percent increase. This increase is mainly attributable to the high flow of international tourism in the city, combined with tourism flow management policies that tend to favor quality stays and reduce mass tourism. Florence and Milan also recorded similar increases, standing at ***.** euros and ***.** euros per night, respectively. The price growth in these cities is closely linked to the upswing in business tourism and international events that continue to draw large numbers of visitors, as well ...

4.3 New supply trends: the impact of AI

Technological transformation in the hotel industry is accelerating thanks to the introduction of increasingly advanced artificial intelligence systems capable of revolutionizing the entire hospitality experience. The advent of advanced models such as ChatGPT has raised the standard of tools to support hotel operations, offering innovative solutions that improve bothoperational efficiency andguest interaction. Prominent among the most popular applications are chatbots capable of simulating human conversations and digital concierges that can assist guests during all stages of their stay, from booking to post-stay assistance. These tools not only make the experience more seamless and personalized, but also open up new opportunities for the hotel market.

According to a report by Accenture, artificial intelligence could double annual economic growth rates by ****, a significant figure that highlights the potential economic impact of this technology. In addition, a PwC study estimates thatAI could contribute as much as $**.* trillion to the global economy by ****. These predictions confirm that the adoption ofAI is not only a strategic choice for improving hotel competitiveness, but also a key factor in supporting global economic growth.

The hotel industry therefore has an opportunity to rethink its internal processes andcustomer interaction by integrating AI solutions that can improve guest experience and increase ...

5.1 Rules and regulations

The hotel industry in Italy is governed by a complex regulatory framework that integrates national and European provisions aimed at ensuring high standards of safety, quality of services and consumer protection.

Italian regulations

In Italy, the regulation of accommodation facilities is mainly left to the regions, in accordance with the principle of regional autonomy. However, there are national regulations that establish uniform criteria for key aspects:

Safety and Fire Prevention: Law No. ** of ****, transposing European regulations, requires the adaptation of electrical installations to EU regulations, guaranteeing the safety of guests. In addition, there are specific fire prevention measures for accommodations, with obligations to install detection systems and adequate evacuation plans. Accessibility for Persons with Disabilities: hotel facilities must comply with regulations on the elimination of architectural barriers, ensuring accessibility to common areas and rooms for persons with disabilities, in accordance with Law No. ** of **** and subsequent additions. Hotel Classification: the Decree of the President of the Council of Ministers (***) of October **, **** defines the minimum standards for hotel classification, awarding from one to five stars based on requirements such as room size, services offered and quality of facilities. For example, a five-star hotel must provide **-hour front desk service, multilingual staff and ...

5.2 Bonuses and Incentives

In Italy, there are various concessions and incentives aimed at both consumers and hotel operators, with the aim of supporting tourism and promoting the modernization of accommodation facilities.

For Consumers:

National Youth Card: young people between the ages of ** and ** can take advantage of discounts of up to ** percent on travel, stays and tourist services, both in Italy and Europe, thanks to the National Youth Card. This initiative aims to boost youth tourism by making travel experiences more accessible.

For Hotel Sector Operators:

Hotel Superbonus (***): the Milleproroghe Decree extended to March **, **** the deadline for completing energy upgrades, earthquake-resistant improvements and digitization of tourism facilities. This incentive provides a tax credit of up to ** percent of the expenses incurred, with the aim of improving the national tourism offer. Transition *.* for Hotels and Hospitality Facilities: this call for tax incentives aims to encourage the digital and energy transition of hospitality facilities, promoting sustainable and competitive growth. Industry operators have until Dec. **, **** to take advantage of this opportunity. Lost Fund Grants for Tourism: managed by Invitalia, these grants are intended for businesses in the tourism and hospitality sector for investments aimed at improving hospitality services, upgrading facilities, digitization and environmental sustainability. Applications can be ...

5.3 Conclusion

The Italian hotel market is in a phase of profound transformation, suspended between growth in demand and the structural challenges affecting its development. While globally and in Europe the sector is expanding rapidly thanks to a strong push from experiential tourism and luxury hospitality, in Italy the recovery appears more selective, with a strengthening of existing facilities rather than a massive expansion of new ones. This phenomenon can be read in two ways: on the one hand, the ability of the Italian receptive system to attract tourists increasingly oriented to quality and uniqueness of experience; on the other, the difficulty for new operators to enter a market that is increasingly demanding and regulated by increasing cost dynamics. The concentration of the sector in the hands of a few large hotel groups, with a reduction in small independent businesses, is a sign of a market that is becoming more polarized, favoring those with the capacity for investment and innovation. Digitization and artificial intelligence are revolutionizing hospitality management, but at the same time pose the question of how to maintain that human and distinctive element that characterizes Italian hospitality. A focus on sustainability and regenerative tourism is emerging as one of the keys ...

6.1 Segmentation

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