Sport Hospitality Market Is Estimated To Witness High Growth Owing To Rising Fan Engagement Initiatives

The Sport Hospitality Market is estimated to be valued at US$ 17.45 Bn in 2024 and is expected to exhibit a CAGR of 20.8% over the forecast period 2024- 2031, as highlighted in a new report published by Coherent Market Insights.

The rising sports culture and increasing fan engagement initiatives by sports clubs and organizers are expected to drive the growth of the sport hospitality market over the forecast period. Sports clubs are focusing on enhancing fan experience at live sporting events through better hospitality services such as providing premium seats, exclusive amenities like stadium tours, access to hospitality lounges offering fine dining options. They are also offering additional services like meet and greet sessions with players to engage fans more effectively. Furthermore, increasing sponsorship from hospitality brands is also fueling market growth.

Key Market Trends: Personalization is emerging as a key trend in the sport hospitality market. Sports organizers and clubs are offering customized hospitality packages and experiences to fans based on their preferences. For example, customized stadium tours, curated pre-match packages including tickets plus drinks and meals tailored to specific tastes. Digitalization is another trend, with hospitality providers focusing on digital bookings, touchless services and seamless match day experiences for fans using technologies like mobile apps and digital wallets. This is expected to make sport hospitality more convenient as well as help providers optimize services. More information available in the sample copy.

Market Opportunities: By Product Type Insights – The sport hospitality market holds huge potential in the by-product type segment. The hospitality offerings are diversifying to include hospitality experiences beyond accommodation like sport-themed attractions and destination packages. Hotel operators and event organizers are coming up with innovative sport hospitality product packages to tap into the growing demand from sport tourists and fans. For example, integrated sport and hotel resorts that offer on-site sporting facilities along with accommodation. This allows guests to participate in their favorite sports alongside enjoying live sporting events.

By Sport Event Type Insights – The growing popularity of niche and emerging sports worldwide is opening new doors for sport hospitality providers. While traditional sports still account for the bulk of revenues, there is growing interest among fans to attend events of lesser-known sports. Hospitality providers are identifying untapped sporting events in regional markets and designing custom hospitality experiences around those events. For example, offering golf touring packages for professional golf tournaments in different parts of the world. This helps discover new fan bases and revenue streams beyond the mainstream sports circuits.

Key Market Takeaways: The global sport hospitality market is anticipated to witness a CAGR of 20.8% during the forecast period 2024-2031, owing to the rising passion for sports and experience-led travel worldwide. On the basis of product type, the hospitality packages segment is expected to hold a dominant position, accounting for over 35% market share by 2031, owing to the growing demand for integrated sporting and accommodation experiences.

By sport event type, the football segment holds the major share currently due to high fan engagement. However, the golf segment is projected to witness highest growth during the forecast period supported by emerging golf destinations and tours outside the USA. Regionally, North America dominates the global sport hospitality market currently and is expected to continue its dominance through 2031. This is attributed to strong sports culture in the USA and Canada leading to high spending on sports hospitality and tourism.

Key Players in the Market: IMG, Octagon, QuintEvents

Recent Developments in Sport Hospitality Market: By June 2023, most major professional sports franchises in North America and Europe reported selling out their top-level premium packages for the upcoming season within the first month of availability. This included teams like Manchester United FC, the Golden State Warriors, and the New England Patriots implementing major expansions to their clubs and suites portfolio over the past year to meet surging demand. With waiting lists growing longer, many expect premium ticketing to remain a lucrative business well into 2024 and beyond.

By June 2024, analysts project that 75% of major stadiums in North America and 50% in Europe will offer full in-seat ordering from a wide selection of food and beverage options via mobile apps and kiosks. Leading the way will be companies like Waitr, DASH, and SeatCracker that specialize in digital concession solutions for sports and entertainment venues. Full coverage of the report available here.