This Capsule Hotels Sector market study offers a comprehensive analysis of the business models, key strategies, and respective market shares of some of the most prominent players in this landscape. Along with an in-depth commentary on the key influencing factors, market statistics in terms of revenues, segment-wise data, region-wise data, and country-wise data are offered in the full study. This study is one of the most comprehensive documentation that captures all the facets of the evolving Capsule Hotels Sector market.
Capsule Hotels: Overview
Japan is one of the most expensive countries in the world to live and work in. According to an Atlas and Boots study, the capital city Tokyo jumped six places from number 11 to number 5 in the 2016 ‘most expensive city for expatriates’ ranking. Hotel room prices average around $250 per night in central Tokyo, which makes it a challenge for both companies and their employees to bear. Thanks to the ingenuity of Kisho Kurokawa, the first capsule hotel named Capsule Inn Osaka was opened in the city in 1979. The main objective of capsule hotels is providing cheap accommodation for clients who do not need all the services offered by more conventional, star-rated hotels. The guest room is roughly pod or ‘capsule’ shaped and may include a TV, gaming console and Wi-Fi Internet connection. Capsules are stacked side-by-side on two levels with steps providing access to the higher level. Privacy is provided with a curtain or fibreglass door, the washrooms are communal and there may be separate capsules for male and female guests. The capsule hotels sector varies in size from hotels with 50 capsules all the way up to hotels with 700 capsules.
Market Growth Analysis
Disclaimer: This data is only a representation. Actual data may vary and will be available in the report.
Cost effectiveness is the main factor impacting the growth of the capsule hotels sector. Capsule hotel rooms typically range from $15 to $35 per night. This makes it highly affordable to those customers who may not need or want all the services offered by traditional hotels. They can simply spend the night at capsule hotels which provide no-frills barebones accommodation. The second driver is the relatively high prevalence of poverty in Japan as compared to other developed nations. According to Japanese government data, 16% of the population was below the poverty line in the year 2015. The poverty line in Japan is defined as a person who earns less than half the average national income. These people tend to be long term customers for capsule hotels. They have either lost their homes or jobs and cannot afford the sky-high property prices or rent in Japan. They hire out a capsule hotel room on a monthly or even yearly basis since the rent there is much lower than a hotel.
Capsule Hotels: Upcoming Trends
Two new trends in the capsule hotel sector are trendy, upmarket luxury capsule hotels and airport capsules. The first is targeted at affluent, business people and foreign nationals seeking a unique living experience. These are located in popular, upmarket bar areas and are frequented by salaried Japanese men who may be unable or unwilling to go home after a night of drunken revelry. They are provided accommodation for the night since it is far more convenient to stay in these hotels rather than take a train to their houses which will typically be on the outskirts of the city. The second focuses on corporate customers and jet-setters who are hopping from one country to the other for board meetings in different locations. They are located very close to airports and provide cheap accommodation with easy connectivity options to both the airport and the city serving their clientele’s primary need. Airport capsule hotels, in particular, have been adopted by several countries around the world because of their cross-cultural application.
Capsule Hotels: Where are They Found?
Japan invented the concept of capsule hotels and hence it is the largest global sector at present. While most capsule hotels are located in the country, they have also been opened in places as diverse as China, Singapore, Taiwan, Malaysia, Bali, Brazil, the U.K., Russia, Belgium and Iceland.
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Frequently Asked Questions
What research methodology is used to develop the Capsule Hotels Sector report?
- FMI utilizes three branched methods to derive market measurements used to compile any report study (data derivation, triangulation and validation).
- These approaches include accumulating data from both primary and secondary sources
- Primary research involves interviews with industry operators and FMI's network of contacts spanning the world's value chain of the Capsule Hotels Sector. This is supported by a comprehensive literature analysis of information gathered through secondary sources
- Analysis of several middle market stakeholders for country-wise data
What else does FMI offer apart from Capsule Hotels Sector report?
In addition to up-to-date market figures and customized of the Capsule Hotels Sector, FMI offer consulting services to help businesses within industry navigate challenges and take well-informed decisions amidst the breakneck competition.
How do you define competitors based on market structure? What aspects about a competitor are included in the company profile section?
- Most of the competitors are segregated according to their market share in 'Tier' wise statures.
- Global market participants are scrutinized and global competition metrics are included with numerous competitor profiles referring to their business background and go-to market strategies.