Did you know that the Canadian hotel industry surpassed its pre-pandemic revenue levels in 2022, bringing renewed optimism to the travel and tourism sector? With projected growth continuing into 2025, this industry presents exciting opportunities for business owners and hospitality professionals alike.
In this post, we’ll dive into the latest Canadian hotel industry statistics, global trends, and the impact of key factors like COVID-19 and sustainability. By understanding these statistics, you can uncover valuable insights to drive conversions, boost bookings, and stay ahead in this dynamic market.
Canadian Hotel Industry Statistics
The Canadian hotel industry is thriving, with consistent recovery and growth post-pandemic, showcasing significant growth trends and opportunities for hoteliers. These hospitality industry statistics highlight key milestones and trends that reflect optimism for hoteliers and investors. With rising occupancy rates, strong revenue projections, and increasing room demand, there’s a wealth of opportunity to leverage.
By understanding these insights, hotel owners can target high-performing regions, capitalize on peak travel seasons, and implement strategies like dynamic pricing to maximize revenue and bookings.
Key Insights
- In 2019, Canadian hotel industry revenue was $8.66 billion before the pandemic. (Made in CA)
- The industry’s revenue dropped to $2.82 billion in 2020 due to the pandemic. (Made in CA)
- By 2022, the revenue rebounded to $9.07 billion, surpassing pre-pandemic levels. (Made in CA)
- In 2023, the revenue reached $9.4 billion, with an annual growth rate projected at 2.08%, leading to a market volume of US$7.86 billion by 2029. (Made in CA)
- In May 2023, Canada’s average hotel occupancy was 69.2%, up 9.3% from the previous year. (Hospitality Trends)
- Vancouver led with a 72.9% occupancy rate in 2022, a 50.4% year-over-year growth. (Hotelier Magazine)
- Toronto saw a 62.7% improvement to a 67.9% occupancy rate in 2022. (Hotelier Magazine)
- Edmonton had the lowest occupancy in May 2023 at 60.9%. (CBRE National Market Report)
- Revenue per available room (RevPAR) and hotel average daily rate (ADR) have consistently surpassed pre-pandemic levels, with ADR projected to grow by 4.9% by 2025. (Event Temple)
- Weekend stays in hotels increased by 15% in May 2023 as leisure travel surged. (Made in CA)
- All major Canadian cities reported growth in occupancy, ADR, and RevPAR in 2022. (Made in CA)
- Vancouver’s ADR in 2022 was $234.12, a 44.4% increase year-over-year. (Made in CA)
- RevPAR in Vancouver grew by 117.1% to $170.61. (Made in CA)
Global Hotel Industry Trends
As global room demand is forecasted to grow by 2.5% in 2025, the ripple effects on the Canadian market are immense. This steady increase reflects a recovering tourism sector and heightened travel activity, both domestically and internationally.
Canadian hotels can capitalize on this trend by focusing on international marketing strategies and creating tailored offerings for the hotel market. Enhanced online booking systems and dynamic pricing strategies can help attract a share of the growing global demand.
Key Insights
- The global hotel and resort market is projected to achieve revenues of approximately US$443.10 billion by 2025, with an expected annual growth rate of 3.67%. (Statista)
- Global room demand is forecasted to grow by 2.5% in 2025. (Event Temple)
- Occupancy rates worldwide have rebounded to pre-pandemic levels, reflecting recovery from the global pandemic. (The Hotel GM)
- In 2024, there were 6.2 thousand hotels in the global construction pipeline, with the U.S. and China leading. (Statista)
- The United States had the highest number of hotel projects in the pipeline as of the first quarter of 2024. (Statista)
- China had around 70 thousand more hotel rooms in the pipeline compared to the U.S. in 2024. (Statista)
- Bleisure tourism, blending business and leisure travel, was valued at $594.51 billion in 2023. (Hospitality Insights)
- The number of global hotel users is expected to reach 1.81 billion by 2025, with user penetration increasing to 22.5% by 2029. (Statista)
Impact of COVID-19 on the Hotel Industry
The hotel industry was one of the hardest-hit industries during the COVID-19 pandemic, with revenues and occupancy rates plummeting worldwide. However, recovery is well underway. With Canadian hotel revenue surpassing pre-pandemic levels and global demand rebounding, there’s a clear upward trajectory for the sector.
Hoteliers can use this momentum to innovate, attract new customer segments, and strengthen their resilience against future disruptions, especially as travel restrictions ease and business travel rebounds. Understanding the lessons from this period is key to building a sustainable and thriving industry.
Key Insights
- In 2020, Canadian hotel industry revenue plummeted to $2.82 billion from $8.66 billion in 2019. (Made in CA)
- Unemployment in the hospitality sector peaked at nearly 20% during the pandemic. (Statistics Canada)
- Occupancy rates lagged behind pre-pandemic levels during the recovery phase in 2022. (STR)
- Demand for hotel rooms exceeded pre-pandemic levels in May 2023 for the seventh consecutive month. (STR)
- The hotel industry reported its highest performance level in May 2023 since September 2022. (STR)
Hotel Booking Trends and Channels
Almost 80% of hotel bookings in Canada were made online in 2022, and this trend is just the beginning as online sales continue to rise, creating significant opportunities for room revenue. By 2027, nearly 90% of bookings are expected to occur online, highlighting the critical role of digital platforms.
Canadian hoteliers can harness this opportunity by optimizing their online presence, leveraging AI-driven personalization, and utilizing leading platforms like Expedia and Booking.com. These strategies can significantly boost direct bookings and profitability.
Key Insights
- Almost 80% of hotel bookings in Canada were made online in 2022. (Made in CA)
- Hotel blogging is critical for connecting with your audience throughout their hotel booking process.
- By 2027, nearly 90% of bookings are expected to occur online, with Canadian online hotel revenue expected to account for 86% by 2029. (Made in CA)
- Leading platforms like Expedia and Booking.com dominate online hotel bookings globally. (Top 10)
- The top revenue-generating channels for hotels include Booking.com, Expedia, hotel websites, Agoda, and Airbnb. (Top 10)
- Technology-driven personalization and AI are enhancing guest experiences and increasing profitability. (Forbes)
Sustainability in the Hotel Industry
Sustainability has transitioned from a trend to an expectation in the hotel industry, with many hotels adopting sustainable practices. Hotels are adopting practices like sourcing food locally, growing produce on-site, and achieving green certifications. These initiatives not only enhance guest satisfaction and loyalty but also reduce operational costs, making sustainability a win-win for businesses and the environment.
Many hotels are now aiming for net positive environmental impacts, aligning with the preferences of eco-conscious travelers. Green certifications enhance marketability, attracting a growing segment of guests who prioritize sustainability. Furthermore, sustainable practices often lead to significant cost savings and operational efficiencies, reshaping hotel operations and marketing strategies worldwide.
Work With Kurt’sCopy to Drive Travel Business Success
At Kurt’sCopy, we understand the evolving dynamics of the travel industry and the importance of staying ahead. In a competitive market, having a targeted content marketing strategy is essential to attract ideal travelers and increase bookings.
Let us craft compelling, personalized content that boosts your online visibility and showcases your unique offerings. Partner with Kurt’sCopy to grow your business and convert opportunities into lasting success. Contact us today to get started!
Kurt Norris is the founder of Kurt’sCopy, where he helps B2B, e-commerce, SaaS, and local businesses craft compelling content and SEO strategies that deliver measurable results. With over six years of experience, Kurt specializes in creating data-driven campaigns that drive traffic, increase conversions, and establish brand authority.
