Hotel Gift Cards Market - Growth, Share, Opportunities & Competitive Analysis, 2024 – 2032

Market Overview

The global Hotel Gift Card market was valued at USD 60,125.43 million in 2023 and is projected to reach USD 179,185.83 million by 2032, growing at a compound annual growth rate (CAGR) of 12.9% during the forecast period (2023-2032).

The growth of the global hotel gift card market is driven by increasing consumer demand for flexible and convenient gifting solutions. As digitalization reshapes consumer behavior, the adoption of digital hotel gift cards has surged, offering personalized and easily accessible options for travelers. The rise in global travel and consumers seeking experiential gifts have further fueled demand. Additionally, the trend of integrating hotel gift cards into loyalty programs and promotions is contributing to their growing popularity. The growing preference for contactless transactions and advancements in mobile payments have also increased the appeal of digital hotel gift cards. Furthermore, the increasing presence of online booking platforms and e-commerce channels has made hotel gift cards more accessible to a global audience. This combination of technological innovation and shifting consumer preferences is expected to continue driving the market’s growth.

Market Drivers

Digitalization and Growth of E-commerce

The increasing adoption of digital technologies plays a significant role in the growth of the hotel gift card market. With the rising prevalence of e-commerce and mobile shopping, consumers can easily purchase and redeem hotel gift cards through online platforms. E-gift cards, in particular, are quickly replacing traditional gift cards, offering better services, creative promotions, and global reach. Digital gift cards make hotel offerings more accessible, as consumers can instantly access them through mobile apps, websites, or email, enhancing their overall experience. As mobile wallets and digital payment systems become more integrated into daily transactions, the demand for digital hotel gift cards is expected to continue growing, with the global distribution of gift cards playing a significant role in expanding sales.

Market Challenges Analysis

Fraud and Security Concerns

A key challenge in the global hotel gift card market is the risk of fraud and security breaches. Like any digital product, hotel gift cards are vulnerable to cyber-attacks, hacking, and unauthorized access, which can result in financial losses for both consumers and businesses. Fraudulent activities such as the unauthorized use of stolen gift card details or account hacking are rising concerns. The Federal Trade Commission has noted that gift card fraud is a significant issue, with rising fraud costs due to phishing attacks and other schemes. The increased use of online platforms for gift card purchases and redemptions only exacerbates this challenge. To ensure the safety of transactions and prevent misuse, hotels and online retailers must invest in robust security measures, such as encryption, multi-factor authentication, and fraud detection systems. Failure to address these security concerns could lead to consumer distrust, limiting the adoption of hotel gift cards.

Market Segmentation

By Product Type:

Universal Accepted Open Loop

Hotel Closed Loop

By Price Range:

Low (0-1000 USD)

Medium (1000-3000 USD)

By Sales Channel:

Online

Offline

By End User:

Business

Individuals

By Application:

Holiday Packages

Bar & Spa Services

Sports Activities

Travel & Transportation

Others

By Geography:

North America

U.S.

Canada

Mexico

Europe

UK

France

Germany

Italy

Spain

Russia

Belgium

Netherlands

Austria

Sweden

Poland

Denmark

Switzerland

Rest of Europe

Asia Pacific

China

Japan

South Korea

India

Australia

Thailand

Indonesia

Vietnam

Malaysia

Philippines

Taiwan

Rest of Asia Pacific

Latin America

Brazil

Argentina

Peru

Chile

Colombia

Rest of Latin America

Middle East

UAE

KSA

Israel

Turkey

Iran

Rest of Middle East

Africa

Egypt

Nigeria

Algeria

Morocco

Rest of Africa

Key Player Analysis

Hyatt

Airbnb

Hilton

Best Western

Choice Hotels International

Radisson Hotel Group

Wyndham Hotels & Resorts

Four Seasons Hotels and Resorts

Marriott International

IHG Hotels & Resorts

Expedia Group

Qwikcilver

Taj Hotels

Others