Sports hospitality refers to various services provided to spectators and other stakeholders at sporting events. This includes catering services, accommodation booking, travel facilitation, concert tickets, VIP passes, and onsite fan activations among others. Sports hospitality enhances the overall experience of fans and is used by sports bodies and event organizers to drive higher engagement and monetization. Sports hospitality firms leverage technology platforms to create customized offerings for clients. The global sports hospitality market is estimated to be valued at US$ 17.45 Bn in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Rising popularity of sports events is the major factor driving the growth of the global sports hospitality market. Large sports leagues and federations are investing heavily in expanding their global fanbase by organizing more international tournaments and competitions. This is increasing the demand for associated hospitality services among fans travelling to venue cities. Furthermore, growing sports sponsorship is allowing event organizers to invest in superior hospitality packages and experiences. However, the market may experience short-term decline amidst the ongoing Covid-19 pandemic due to restrictions on mass gatherings and international travel. Once the pandemic is controlled, the market is expected to bounce back strongly driven by the two aforementioned factors.
SWOT Analysis
Strength: Sports hospitality market has great growth opportunities with rising fanbase and spectator interest in live sporting events. Hosting sports events helps improve cities profile and tourism. It also contributes significantly to local economies. Revenue from events, hospitality, media rights, sponsorships benefit leagues, teams and cities.
Weakness: Sports hospitality businesses are highly dependent on successful hosting of events which face risks of cancellations from factors beyond control like pandemics, natural disasters etc. Profitability fluctuates based on team/event performance. High investment and operating costs along with seasonal nature of business.
Opportunity: Emergence of new sports leagues and niche sporting events increases opportunities for hospitality businesses. Growing fan engagement through digital platforms and fan experience enhancement presents new avenues. Strategic partnerships with corporates for branded experiences can boost revenues.
Threats: Intense competition to host mega sports events drives cities to overinvest which may not give desired returns. Piracy and alternate viewing options reduce spectators and erosion of live sports value proposition over time.
Key Takeaways
The global Sports Hospitality Market Growth is expected to witness high growth over the forecast period of 2023 to 2030 supported by rising spectator interest in live sports and improvement in fan experience offerings. The market size is projected to reach US$ 17.45 Billion by 2023.
Regional analysis: North America currently dominates the global market led by USA. Emerging markets in Asia Pacific like India and China offer immense potential for future growth due to increasing sports participation, hosting of global events and fan base. Countries propose sophisticated hospitality concepts to attract more international sporting events and tourists.
Key players analysis: Key players operating in the sports hospitality market are Sabra Dental, Collagen Matrix, Cologenesis Healthcare Pvt. Ltd, Novabone, Kerr Dental, Acteon Group, Jorgen Kruuse A/S, Axio Biosolutions Private Limited, Zimmer Biomet, Lynch Biologics,LLC, Nobel Biocare Services AG, Salvin Dental Specialties, Neoss Limited, Unicare Biomedical, Citagenix Inc. These companies offer customized event management and visitor travel packages, luxury accommodations and exclusive pre-game and half-time activities/viewing areas targeting affluent fan segments. They also invest in tech-based platforms and mobile apps for enhanced digital fan engagement. Strategic mergers and acquisitions aid geographical expansions.
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