Capsule Hotel Market Analysis by Geography, Growth Rate and Market Shares by 2022


Capsule Hotel is a small box type hotel, which was introduced in Japan in 1979. Capsule hotels are designed to provide affordable and inexpensive accommodation to customers who are expected to avail basic overnight accommodation and do not require high value-added services provided by other conventional hotels. The global capsule hotels market is segmented based on shape, bed and geography. The rooms include a television, electric components, Wi-Fi connectivity and are available in varied sizes. The size varies from 50 to 700 capsules in a hotel. Increase in demand for hotels available at an economic price is anticipated to expand the growth of capsule hotel market during the forecast period. The price of capsule hotel rooms varies from $18 to $40 per night. In addition, increase in travel & tourism in the region is anticipated to create more demand for capsule hotels in the Asia Pacific region.

It is reported that that majority of travelers focus on spending the night at hotels with simple accommodation, which is expected to boost the growth of capsule hotels market globally. Capsule hotels became popular in Tokyo because of sky-high property values and limited space in the metropolis. In the airport, though space is less of an issue than cost. Splashing out on a hotel room makes sense if you have ten hours to kill (not to mention a generous boss), but the average stopover will be shorter. 

Given relatively quick turnaround times, travellers in the market for a bed probably want to use it to the fullest. That means lights off, heads down and consciousness over. Full-blown hotel rooms with amenities like telephones, desks and cable TV seem excessive; so does paying for a whole night when your flight departs in five hours. The guest room is a modular plastic or fiberglass block roughly 2 by 1 by 1.25 m (6 ft 7 in by 3 ft 3 in by 4 ft 1 in). Facilities differ, but most include a television, an electronic console, and wireless internet connection.

The capsules are stacked side-by-side, two units high, with steps providing access to the second level rooms, leading to comparisons to corpse drawers in a morgue. The open end of the capsule can be closed, for privacy, with a curtain or a fibreglass door. Luggage is stored in a locker and washrooms are communal. Guests are asked not to smoke or eat in the capsules. Some capsule hotels offer separate sections for male and female guests.  This style of hotel has not gained wide popularity outside Japan, although Western variants known as “pod hotels” have been developed with larger accommodations and often-private baths.


On the basis of shape, the global capsule hotels market is segmented into vertical and horizontal. On the basis of bed, the global capsule hotels market is segmented into single and double. On the basis of geography, the global capsule hotels market is segmented into Latin America, Middle East & Africa, North America, Japan, Singapore, Australia, Europe and Asia Pacific. The key players of global capsule hotels market are Tokyo Ginza Bay Hotel, Super Hotel, Capsule Inn kamata, Wink Hotel, Vintage Inn and Shinjuku Kuyakusho-mae Capsule Hotel.

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