The floating hotels market comprises hotels that are located offshore, offering unique lodging experiences to guests aboard large boats or small islands. Floating hotels provide all the traditional amenities of standard hotels along with advantages such as beautiful scenic views and a sense of escapism.
The global floating hotels market is estimated to be valued at US$ 4,790.0 Mn in 2024 and is expected to exhibit a CAGR of 6.3% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the floating hotels market are Good Hotel London, Manta Resort, The Floatel In, LE ROI FLOATING HUTS & ECO ROOMS, Amilla Maldives, Soneva, Madifushi Private Island, Amaya Kud Rah, Sun Siyam Resorts, Taj Lake Palace, Udaipur, The Floatel, Kolkata, AB Celestial, Mumbai, Poovar Island Resort, Mumtaz Palace Houseboat, Poovar Island Resort, Queen Elizabeth 2, Love and boat LLC, Palm Springs Preferred Small Hotels., River Kwai Jungle Rafts, and Float House River Kwai.
The rising preference for unique lodging experiences among leisure travelers is driving significant demand in the Floating Hotels Market Growth. Floating hotels offer picturesque views coupled with luxury accommodations that satisfy the increasing appetite for experiential travel.
Several floating hotel operators are focusing on global expansion plans to capitalize on the growing overseas tourism industry. Countries with scenic water bodies and islands are witnessing rising investments in floating hotel infrastructure projects.
Market Key Trends
One of the key trends gaining traction in the floating hotels market is the provision of sustainable amenities and services. Several hotel brands are incorporating eco-friendly practices such as using solar energy and recyclable materials in operations. Emphasis is increasing on limiting carbon footprint and preserving the marine environment. Moreover, the introduction of technologically advanced features such as swimming pools and fine dining options is enhancing the hospitality experience for guests in floating hotels.
Porter’s Analysis
Threat of new entrants: Low capital requirement and availability of used ships at low cost reduces barriers to entry. However, operational challenges such as permits, infrastructure and meeting quality standards pose threats.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of alternatives like beach resorts and standard hotels. However, uniqueness of experience attracts buyers.
Bargaining power of suppliers: Suppliers of ships, interiors, utilities etc have low to moderate bargaining power due to availability of alternatives and established supply chains.
Threat of new substitutes: Alternate experiences like beach resorts, standard hotels, cruises pose threat. However, uniqueness of onboard experience offsets substitutes.
Competitive rivalry: Intense as operators compete based on location, amenities, experience and price. Focus on uniqueness and quality keeps rivalry healthy.
Geographical regions with high market value
The Asia Pacific region accounts for over 40% floating hotels market regional analysis share in terms value led by tropical destinations like Maldives, Thailand, Indonesia and Kerala. Abundance of islands, lagoons and backwaters provides natural advantage.
Fastest growing geographical region
North America region is witnessing fastest growth at a CAGR exceeding 9% during forecast period. Growing inclination of international tourists and development of river cruise infrastructure in countries like US is driving growth. Operators are launching new hotels in rivers, lakes and offshore locations.