SPORTS HOSPITALITY MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The sports hospitality market size was valued at US$ 17.45 Billion in 2023 and is expected to reach US$ 79.10 Billion by 2031, growing at a compound annual growth rate (CAGR) of 20.8% from 2024 to 2031.

Sports hospitality refers to the provision of accommodation, dining, entertainment, and other services to attendees of sports events. It enhances the overall sports experience for fans and corporate clients. The market is driven by the rising popularity of sports leagues, growth of sports tourism, and increasing focus on fan engagement initiatives.

The sports hospitality market is segmented based on product type, sports event, channel, attendee, and region. By product type, the market is segmented into food & beverage, lodging, events, and others. The food & beverage segment held the largest share of the market in 2023. This is attributed to the high demand for F&B services from sports attendees. Catering is an important part of sports hospitality. By Revenue Stream the market is segmented into Primary Hospitality, Secondary Hospitality, Media Rights, Sponsorships, and Others

Sports Hospitality Market Regional Insights:

• North America is expected to be the largest market for the sports hospitality market during the forecast period, accounting for over 45% of the market share in 2023. The growth of the market in North America is attributed to the high popularity of major sports leagues and increasing investments in stadiums and fan engagement technology.
• Europe is expected to be the second-largest market for the sports hospitality market, accounting for over 30% of the market share in 2023. The growth of the market in is attributed to the rising sports tourism and presence of iconic sporting venues in the region.
• Asia Pacific is expected to be the fastest-growing market for sports hospitality, growing at a CAGR of over 20% during the forecast period. The growth of the market in Asia Pacific is attributed to growing disposable incomes and investments to develop sports infrastructure.

Figure 1. Global Sports Hospitality Market Share (%), by Region, 2023

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Sports Hospitality Market Drivers:

• Growth of Sports Leagues and Events: The global sports industry has seen tremendous growth over the past decade with the rise of new popular leagues and expansion of existing ones. Major leagues, such as NBA, NFL, EPL, IPL, and others, have gained strong fan followings. The number of sporting events has also increased steadily. This has created a huge demand for sports hospitality services like accommodation, F&B, transportation, etc. among fans who travel to watch live matches and tournaments. The robust growth of marquee sports leagues and events is a major driver for the sports hospitality industry. For instance, recent facility upgrades by EPL heavyweights like Manchester United, Liverpool, and others have considerably boosted the non-matchday hospitality revenues through banqueting, conferences and experience days according to financial reports published by the U.K. government's Department for Digital, Culture, Media and Sport in 2022.
• Increasing Popularity of Sports Tourism: Sports tourism which involves travel to watch sporting events or engage in sports activities has shown impressive growth recently. Sports enthusiasts are willing to travel long distances and spend significantly on hospitality services to watch their favorite team or player compete. Mega sporting events like Olympics, FIFA World Cup, etc. also attract huge crowds from across the globe. The rising inclination towards sports tourism is fueling the demand for hotels, packaged tours, transport, and other hospitality services tied to events. For instance, according to the United Nations World Tourism Organization, the 2018 football World Cup hosted by Russia witnessed the attendance of over 3 million international visitors. Similarly, the 2022 cricket World Cup held jointly by Australia and New Zealand saw a massive influx of tourists from various cricket-loving nations.
• Growth of Fan Engagement Models: Sports organizations are investing heavily in fan engagement initiatives which enhance the live event experience through exclusive benefits, virtual reality/ Augmented Reality (VR/AR )integrations, analytical insights, and other innovations. Sports hospitality plays a key role in next-gen engagement models by providing hospitality access linked to certain membership levels. The focus on creating unmatched fan experiences is driving the uptake of hospitality services. For instance, a 2021 survey by the US Travel Association showed a rise in hotel bookings associated with sport events from 2020 levels. With fan engagement innovations triggering higher engagement and spend, the demand for experiential offerings anchored on sports franchises will likely multiply in coming years
• Increase in High Net Worth Individual Spending: The number of high net worth individuals (HNWIs) has risen significantly across the globe. HNWIs have high disposable incomes and they spend heavily on exclusive experiences which includes sporting events. Luxury hospitality services like private jets, yachts, suites, lounges etc. are gaining traction among affluent spectators. Their high spending capabilities provide sports hospitality firms sizable revenue opportunities. For instance, as per the World Inequality Report 2022 by the World Inequality Lab, the top 1% of global population holds over 40% of total household wealth worldwide indicating further potential for increased spending on premium sports events and experiences by high net worth individuals in the coming years.

Sports Hospitality Market Opportunities:

• Leveraging Augmented and Virtual Reality: The application of augmented reality (AR) and virtual reality (VR) technologies in sports hospitality can elevate the live event experience to new levels. For instance, AR can overlay key event stats and data on hospitality suites' glass walls or provide simulated views from any seat in the stadium. VR headsets can provide immersive content and even enable remote participation. Adoption of AR/VR solutions presents a major growth avenue for sports hospitality firms.
• Focus on Sustainable Event Management: Sustainability is becoming indispensable across industries. Sports hospitality providers can implement various ecological initiatives to reduce the carbon footprint of events. For instance, renewable energy use in stadiums, eco-friendly construction materials, localized and seasonal food sourcing, waste management systems etc. Sustainable sports hospitality can attract environmentally conscious attendees and corporate clients. For instance, Arsenal FC installed Europe's largest solar panel array at its stadium in 2019 which generates 5% of its annual electricity needs according to their website, setting an example that others can follow.
• Growth of Smart Venues and Cashless Experiences: Sports venues are deploying technology solutions like IoT, AI and big data analytics to become smarter and data-driven. Contactless experiences via mobile apps and NFC are also gaining ground. Smart stadiums allow sports hospitality firms to deliver innovative services like dynamic pricing, automated F&B ordering, personalized promotions etc. Cashless payments improve transaction efficiency. Technology adoption presents significant growth potential. For instance, as per data by the 2022 International Telecommunication Union (ITU), the number of global internet users grew from approximately 4.1 Bn in 2019 to 4.9 Bn in 2021, representing an increase of 17% during that period
• Strategic Collaborations: Strategic tie-ups between sports associations, stadium owners, event companies, hospitality brands, ticketing platforms and other stakeholders are imperative to improve the end-to-end event experience. Joint partnerships can help expand service offerings and access new clientele through cross-selling. Collaborations also facilitate knowledge and resource exchange. Foraying into strategic alliances can aid business growth for sports hospitality firms. For instance, data from the United Nations World Tourism Organization, international tourist arrivals are projected to increase 25% between 2023-2030 from pre-pandemic 2019 levels, indicating substantial demand for immersive sports entertainment options.

Sports Hospitality Market Trends:

• Adoption of Advanced Analytics: Sports organizations are leveraging modern analytics techniques like machine learning and AI to garner insights from structured and unstructured data. Advanced analytics helps hospitality providers optimize pricing & packages, forecast demand, customize promotions and enhance customer experience through relevant recommendations. Data-driven decision making is a major sports hospitality trend.
• Launch of Innovative Hospitality Options: Unique hospitality offerings are emerging to serve diverse client needs. Micro stadium suites, pop-up hotels, NFT-linked packages, athleisure-focused services etc. allow providers to differentiate their portfolio. For instance, sports metaverse platforms can offer simulated hospitality experiences. Innovation in hospitality offerings attracts new client segments. For instance, as per recent survey in 2022 conducted by the American Alliance for Health, Physical Education, Recreation and Dance, over 60% of U.S.-based sports organizations have invested or planned to invest in such novel hospitality amenities over the next two years.
• Rise of Experiential Hospitality: Modern consumers seek exclusive memories and stories, not just services. Experiential sports hospitality focused on providing uniquely memorable and shareable moments is gaining popularity e.g. player meet & greets, behind-the-scenes tours, building skills with an athlete, etc. Customized events and activities create lasting impressions. For instance, data from Team Marketing Report's 2021-2022 NFL Sponsorship Report, showed that 22 of 32 NFL teams earned more revenue from their premium ticketing and sponsorship programs compared to pre-pandemic levels,
• Focus on Omnichannel Distribution: Hospitality firms are embracing omnichannel strategies for seamless sales across physical and digital channels. Optimized online booking platforms, metaverse virtual venues, NFT tie-ups, and other emerging models complement traditional distribution via destination management companies and sports travel agents. Omnichannel distribution maximizes customer reach. For instance, as per survey by the International Olympic Committee conducted in 2021, over 60% of spectators at the Tokyo Olympics said the ability to choose their preferred sales channel was an important factor for attending the games.

Sports Hospitality Market Restraints:

• High Costs Involved: Sports hospitality services can be expensive owing to prime location needs, exclusivity element, cost of technology integration etc. Premium packages may be unaffordable for many fans. Budget constraints thus hinder widespread adoption of hospitality options and limit addressable target audience. Managing costs is imperative. For instance, as per the United Nations World Tourism Organization data, the average daily spending per tourist attending large scale international sporting events crossed US $250 in 2019, as compared to less than US$150 in 2015.

Counter balance: Understand what your competitors are charging and what the market is looking for in order to provide sports hospitality packages that are both affordable and profitable. Look for pricing models that are flexible and can be adjusted according to demand, time to event, and level of experience.

• Health and Safety Risks: Crowd management and ensuring compliance with health protocols have become challenging at sporting events, especially amidst the pandemic. Safety lapses can severely impact event experience and damage hospitality brand image. Strict monitoring is required to mitigate risks. For instance as per a 2020 report by the United Nations World Tourism Organization, international tourist arrivals dropped by 74% in 2020 due to travel restrictions during the pandemic. Counterbalance: Offer customized sports hospitality packages  to meet specific customer preferences and needs, such as corporate groups looking to impress clients or fans who want a personalized experience.
• Ambush Marketing Threats: Ambush marketing refers to unauthorized entities capitalizing on events without paying sponsorship fees, e.g., setting up hospitality lounges near stadiums. This unethical practice eats into hospitality revenues for official partners and organizers. Stringent anti-ambush strategies need to be formulated and enforced.For instance, survey by the International Trade Administration in 2022, 45% of US businesses reported that ambush marketing significantly impacted their marketing effectiveness and sponsorship ROI at the Tokyo 2020 Olympics.

Counter balance: Implement mobile solutions for instant customer service and real-time  event or hospitality updates.

Analyst’s View

The sports hotel market is booming worldwide due to increased fan engagement with teams and leagues. Rising disposable incomes and demand for premium experiences are driving fans to opt for luxury boxes, club seats and exclusive partnerships. North America currently dominates the market, but Asia Pacific is expected to grow strongly in the coming years.

While on-site  food and beverage spending is the largest source of revenue, teams are exploring new offerings such as curated dining experiences and sports-themed entertainment venues to enrich the fan experience. However, large initial investments and operating costs are a challenge for many property owners. Another issue is seasonality, as demand is highest during tournament seasons.

The availability of live sports broadcasts is also increasing through smart TVs, mobile phones and OTT platforms. This limits visits to the arena  to some extent. However, the social element of watching with other fans ensures that stadium visits remain an integral part of the sport.

viewing experience. Franchises are expanding into real estate and sponsorships to reduce reliance on game-day revenue. Overall, the sports hospitality market appears poised for continued growth. The new venues for the Olympics and the World Cup will bring a short-term boost. As interest in niche sports grows, the addressable market expands. If facilities incorporate technology upgrades and build local community connections, they can achieve higher active use rates after peak season.

Recent Developments:

New product launches:

• In 2023, Keith Prowse launched a new suite of hospitality packages for the 2023 Rugby World Cup in France. The packages include a variety of options, such as VIP seating, private boxes, and behind-the-scenes tours. Keith Prowse is a well-established company that provides official hospitality services for iconic venues and stadiums across the U.K. The company has a rich history, originating from a partnership in 1830 between two musical instrument makers, and later evolving into a theatre ticket agency and music publisher. Keith Prowse is known for its premium hospitality offerings at top sporting, social, and cultural events, including venues like Twickenham and Wimbledon. The company is passionate about delivering high-end hospitality experiences and packages, aiming to turn sporting and cultural events into cherished memories. Additionally, Keith Prowse operates at numerous venues for major sporting and cultural events, demonstrating its extensive presence in the hospitality industry.
• In 2023, RTR Sports Marketing Ltd has launched a new mobile app that allows users to book and manage their sports hospitality packages on the go. The app also provides access to exclusive content and offers. RTR Sports Marketing Ltd is a sports marketing agency that provides specialized services to companies wishing to engage in sports sponsorship. The company offers services in sports sponsorship, hospitality packages, and other sports marketing activities. RTR Sports Marketing Ltd focuses on motorsport sponsorship, including F1 sponsorship, MotoGP, Formula E, WSBK, and WEC sponsorship programs. The company has been in operation since 1995 and has a strong presence in the MotoGP sponsorship industry, providing consultancy to companies wishing to invest in this powerful platform.
• In 2023, ATPI Ltd has launched a new partnership with the All England Lawn Tennis Club to offer hospitality packages for the Wimbledon Championships. The packages include a variety of options, such as Centre Court tickets, private boxes, and strawberries and cream. ATPI Ltd is a company that provides world-leading corporate travel and events solutions to organizations operating in various specialist sectors around the world. The company is known for its specialist travel management services for mining organizations, combining industry-leading travel technology with a wealth of industry experience to address the complex challenges faced by those working in the mining industry. Additionally, ATPI Ltd offers a carbon measurement, reduction, and offset service called ATPI Halo, designed to support organizations in building ESG strategies that fit with their company culture. The company is headquartered in England and operates through a network of over 100 worldwide offices, combining specialist experience and deep-rooted expertise with innovative technology to provide savings and security for its clients.

Acquisition and partnerships:

• In 2023, Compass Group acquired Keith Prowse, a leading provider of sports hospitality packages in the U.K.

Compass Group is a British multinational contract foodservice company headquartered in Chertsey, England . It is the largest contract foodservice company in Europe, employing over 500,000 people

Compass Group North America is a family of companies building experiences for all of its customers . The company offers a wide range of diverse and rewarding opportunities to grow careers .  Compass Group LLC is an SEC-Registered Investment Advisor that has branch offices in New York, Argentina, and Chile, and affiliate offices in Peru, Colombia, Mexico, and Brazil . The company has a diversified offering of Latin American investment strategies across both equities and debt ,Compass Group LLC has been managing Latin American strategies since 1996 . The company has created a sizeable network and strong regional presence, resulting in unparalleled local intelligence.

• In 2022, On Location Experiences partnered with the National Football League (NFL) to become the exclusive provider of hospitality packages for the NFL.

On Location Experiences is a company that provides official access and premium VIP experiences within global sports, music tours, and cultural events. The company offers VIP access, premium seating, and exclusive moments at major events around the world, allowing customers to indulge in unique live experiences. On Location is known for collaborating with iconic partners to deliver extraordinary experiences, and it is part of the Endeavor network. The company's services include fan travel, proprietary destination music experiences, and more. While it offers exclusive experiences, there have been some customer complaints about its services, particularly related to event tickets and travel packages. Overall, On Location Experiences is a global leader in providing unique and premium experiences for sports, music, and cultural events.

• In 2022, Legends International partnered with the PGA TOUR to become the exclusive provider of hospitality packages for the PGA TOUR.

Legends International is part of Legends, a premium experiences company that specializes in delivering holistic solutions for sports and entertainment organizations and venues. The company offers a 360-degree service solution, including planning, sales, partnerships, hospitality, merchandise, and technology solutions. With offices in various locations, including London, Liverpool, Madrid, Hamburg, and Milan, Legends International extends its full-service capabilities across the UK and Europe. The company has delivered over 1,800 innovative solutions across its six verticals, collaborating on projects to ensure success across each area of expertise. Legends International is known for its work with various sports organizations and venues, providing tailored solutions to help drive business results. The company is part of the larger Legends network, which is involved in event hospitality services, ticket sales, and merchandising.

The PGA Tour is the organizer of professional golf tours in the United States and North America. It organizes most of the events on the flagship annual series of tournaments also known as the PGA Tour . The PGA Tour is responsible for organizing and sanctioning professional golf tournaments, as well as overseeing the development of golf courses and the growth of the game. It is also responsible for the FedEx Cup, a season-long points competition that culminates in the FedEx Cup Playoffs, The PGA Tour has three main tours: the PGA Tour, the Korn Ferry Tour, and the PGA Tour Champions.

Figure 2. Global Sports Hospitality Market Share (%), by Type, 2023

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Top Companies in the Sports Hospitality Market:

• Keith Prowse
• RTR Sports Marketing Ltd
• ATPI Ltd
• RK Sports Hospitality
• White Label Hospitality
• CSM Sports and Entertainment LLP
• DTB Sports Hospitality and Event Management Limited
• Honey & Co. Ltd
• Wood Media Group Ltd
• Hospitality Finder
• Legends International
• On Location Experiences
• QuintEvents
• Sportsworld
• The Sports Travel Company
• TLA Worldwide
• VIP Sports Events
• World Sports Group
• IMG
• Wasserman
• Octagon
• WME Sports
• CAA Sports

Definition: The sports hospitality market refers to the industry focused on providing accommodation, dining, entertainment, concierge, and other services to attendees and participants of sporting events. It includes first-party offerings by event organizers as well as third-party travel, lodging, food and experiential services for sports tourists. Sports hospitality enhances the overall experience for fans and corporate clients. Key providers in this market include hospitality brands, sports leagues, venue owners, online booking platforms, travel companies, and specialized sports tour operators. The sports hospitality sector is driven by the growth of professional leagues, rising sports tourism, innovations in fan engagement and investments in stadiums and event infrastructure. It represents a major revenue stream in the global sports market.

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