Sports hospitality refers to utilizing sports events or venues to host hospitality clients and potential customers. It provides guests with premium experiences at major sporting events through amenities such as tickets, luxury suites, gourmet food and beverage options. The growing preference for premium experiences and unique engagement opportunities is driving the demand for sports hospitality packages.
The global Sports Hospitality Market is estimated to be valued at US$ 30 Billion in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Growing Demand for Premium Experience
The key trend propelling the growth of the sports hospitality market size is the growing demand among customers and corporate clients for premium and exclusive experiences at major sporting events. Sports hospitality packages offering luxury amenities and elite access are becoming increasingly popular for client entertainment and networking purposes. The sports hospitality industry is innovating its offerings such as curating special engagement programs and meet-and-greet sessions with athletes and celebrities to cater to the rising demand. This is driving more businesses to leverage sports events for customer relationship management through sports hospitality services.
Strength: Sports hospitality provides clients opportunity to socialize through attending live sporting events. This helps in brand promotion and client engagement.
Weakness: High operational costs involved in organizing sports hospitality events. Dependence on performance of home team leads to variability in client experience.
Opportunity: Rise in number of international sporting leagues and tournaments provides scope to offer sports hospitality packages for global clientele. Partnerships with franchise teams helps in accessing untapped regional markets.
Threats: Outbreak of contagious diseases poses risk of cancellation or postponing of live sporting events. Economic downturns impact discretionary spending on such luxury experiences.
The global sports hospitality market is expected to witness high growth over the forecast period of 2024 to 2030.
North America currently dominates the market owing to high popularity of major league games and tournaments in the region. Europe follows in terms of market share attributable to presence of top international football clubs and tournaments in the region. Asia Pacific is projected to be the fastest growing regional market propelled by investments in sports infrastructure and hosting of global events in countries like India and China.
Key players operating in the sports hospitality market are Club Wembley, DNA Entertainment, Thai Son Tra, LEGROS & Co., Packers Corporate Hospitality, and QuintEvents. These market players offer bespoke sports viewing and entertaining packages for corporates along with luxury amenities. Partnerships with top sports franchises help them in offering once-in-a-lifetime experiences and access to matches, players and behind the scenes areas. Market players are also focusing on digital engagements and virtual sports viewing options to expand their client outreach amid pandemic.