The history of the hotel industry is a long one. Dating back to ancient times, hotels have played a key role in the growth of the tourism industry. But how has the hotel industry changed over the years?
This article provides a brief history of the hotel industry, from ancient inns to the global hotel brands and online booking platforms of today.
- What is a hotel?
- The first hotels
- The history of hotels: the middle ages
- The modern hotel industry
- Hotels in the 18th and 19th centuries
- The history of hotels: the 20th century
- The internet and its impact on the hotel industry
- The post modern hotel industry
- The oldest hotel in the world: Nishiyama Onsen Keiunkan
- History of the hotel industry: Further reading
What is a hotel?
Before looking into the history of the hotel industry, it is important to recognise what a hotel is.
A hotel is defined as an establishment providing accommodation, meals, and other services for travellers and tourists.
A hotel is somewhere where one can sleep away from their home. This could be for a holiday or for business purposes, or for convenience when travelling for any other reason such as a hospital appointment in a different area. They are short-term lets ranging from one night to a few weeks.
Hotels take all shapes and sizes and there are a variety of different types of hotels found throughout the world. In fact, the nature of hotels has changed and evolved throughout the years- the history of hotels is a long and interesting one.
The first hotels
Hotels go back to ancient times. Not in the way we know them, but right back to the early days of civilisation.
In those days there were places where you could exchange money or goods for a roof over your head for the night. This was especially important at this time because journeys were made on foot (or horse and cart, later), so getting places took much longer than it does now.
While this matches the concept of a hotel as we know it, it was often just a room in somebody’s home. Often it was actually an outhouse! At this point, hotels were somewhere to stay out of necessity as part of a journey – rather than somewhere to make a journey to.
However, enterprising people realised that this was something they could expand on.
In the Ancient Roman times, society began to see more of what we would equate to today’s hotels.
Hospitia, derived from the word hospitality, was used to describe rooms rented in private homes, as explained above. Over time these were commercialised.
The hospitia started to offer food and drink as well as somewhere to sleep, and became somewhere that people would travel to for relaxation and holiday purposes – at least for the upper classes.
One example is the House of Sallust, a popular hotel in Pompeii before the city was destroyed. This is now a popular dark tourism destination.
The history of hotels: the middle ages
The hotel industry developed slowly.
During the Middle Ages inns and staging posts were established as rest spots for travellers, while abbeys and cloisters also offered places for tired travellers to spend the night.
Inns cropped up around Europe and the rest of the world, but travelling during this time wasn’t particularly safe and/or common. Pilgrims, couriers and government workers were the most likely to use these services.
The modern hotel industry
The hotel industry as we know it started around the fifteenth century.
In France and England, laws were introduced that meant inn keepers and hotel owners must keep a guest register. Around 600 inns were registered in England at this time.
These were precursors to the modern hotel, and very similar to what was offered in Ancient Rome and Ancient Greece. However, they were now more regulated.
These inns provided food and somewhere to sleep as well as stabling and fodder for any horses within the travelling party.
Typically, an inn would consist of an inner court with bedrooms on either side, kitchen and parlour at the front, and stables at the back.
Coaching inns were vital before the introduction of rail travel. In England, these were about 7 miles apart and there were up to 10 in any one town. There was plenty of rivalry between inn owners.
They allowed horses to be switched out so the journey went as smoothly as possible. Still, at this point, few people were travelling for ‘leisure’ purposes except for the very wealthy. It was mostly the mail coaches and business trips.
In order to adapt and try to become the inn of choice in any one town, inn owners started running their lodgings in a more professional manner. This meant proper timetables and fixed food menus. This is where the first similarities with the modern hotel industry can be seen.
Hotels in the 18th and 19th centuries
The basic concept of the hotel has not changed massively since the 18th century.
During the middle of the 1700s, hotels simply grew and provided more. As wealthy people were beginning to explore further afield and travel became more of a leisure activity than it ever had been (e.g. the upper classes of ancient Greco-Roman culture), hotels had to become grander and give their guests something else.
One of the first establishments in England to call itself a ‘hotel’ opened in Exeter in 1768 (later known as the Royal Clarence Hotel). This was followed by the City Hotel in New York, which opened in 1794. However, it wasn’t until the early 1800s that people took the idea on board and hotels started to pop up throughout Europe and North America.
Mivart’s Hotel opened in London in 1812 (later becoming Claridge’s), while Tremont House in Boston, USA opened a few years later in 1829. Tremont House holds the record for many industry firsts. It was the first hotel to have indoor plumbing with toilets and baths, as well as free soap, locks on guest-room doors and a proper reception desk area which did more than just take payment. As time went on, more and more hotels opened.
Thanks to the industrial revolution, there was regular but structured work so people had more income as well as time off. Travel started to be more accessible and more appealing.
With the invention of trains and cars as well as reduced working hours and other benefits, travel was no longer something only the wealthy could do! Demand led to a turning point in the history of hotels as they increased in popularity hugely. By the 1900s, there were many hotels around the globe.
The history of hotels: the 20th century
As the physical aspect of travelling got easier and became more commonplace, the hotel industry boomed.
The second half of the 20th century saw a massive boom in the economy, too. This meant that the population grew, demographics changed and many places became more urban. As the desire to travel increased, so did the different types of hotels.
The boom in hotels was a prominent part of the history of tourism. With travel becoming a more popular activity, there had to be plenty of variety. This is why we now see beach resorts and motels, golf resorts and budget hostels around the globe.
This diversity meant that different target audiences were catered for, and that prices could vary depending on what each hotel offered. Hotel classification systems, such as star ratings, brought a whole new level of structure to the industry.
And of course, international travel opening up meant that hotels and resorts around the globe had a whole new clientele to cater to: foreign tourists. People were no longer just travelling domestically. They were now visiting other countries to explore, staying for longer time periods and expecting more out of their trip.
While the basic concept of a hotel has changed little over time, hotels have always had to adapt to changing travel patterns and customer expectations.
The internet and its impact on the hotel industry
As with every part of tourism, the hotel industry has been transformed by the internet.
The travel industry responded quickly to the rise of the internet, and continues to do so. Internet access means people have more choice. It means it is easier to book things like hotels (as well as flights, transfers and car hire) from home, and travellers can compare hotel prices and reviews, and often reserve without payment and cancel for free.
The digital age has meant the travel industry has needed to adapt. However, it has also presented new opportunities for hoteliers and other industry professionals.
With thousands of options at their fingertips on sites like booking.com, avid travellers are able to read reviews and see real-time price updates for hotels in their own area or in far-flung corners of the globe. Tamara Lohan from Mr & Mrs Smith, a boutique hotels website, told the Guardian: “We pivoted from a hotel guidebook to become an online travel agent just as the internet started to become a place people could finally trust with their credit cards. In the whole of that first month online we did 10 bookings – now we do 300 a day.” Mr & Mrs Smith was acquired by hotel group IHG in 2023, illustrating how traditional hotel companies are also investing in online platforms.
The post modern hotel industry
What is the future of the hotel industry?
In recent years we have seen a significant growth in the sharing economy. The concept is simple- peer to peer transactions are becoming increasingly popular over traditional consumer purchases.
Platforms such as Airbnb and Vrbo have created significant competition for hotels, by allowing people to rent out homes and rooms to travellers. In response, many cities have introduced regulations on short-term rentals, and some hotel groups have launched their own home-rental brands, such as Marriott’s Homes & Villas.
The COVID-19 pandemic was the most severe crisis in the hotel industry’s modern history, with occupancy rates collapsing in 2020. The industry has since recovered strongly, and the pandemic accelerated changes such as contactless check-in, mobile room keys, enhanced cleaning standards and greater use of technology and data to personalise guests’ stays.
With the growth of niche tourism and consumer demand for the new and the different, unique hotels – from ecolodges and treehouses to themed and boutique hotels – are becoming increasingly popular, alongside a growing focus on sustainability and the use of artificial intelligence in hotel operations and marketing.
The oldest hotel in the world: Nishiyama Onsen Keiunkan
No history of the hotel industry would be complete without mentioning Nishiyama Onsen Keiunkan.
According to Guinness World Records, this is the oldest hotel in the world that is still operating. Located in Yamanashi Prefecture, Japan, it was founded in AD 705 and has been run by the same family for more than 50 generations. It was recognised by Guinness World Records in 2011.
Nishiyama Onsen Keiunkan is a traditional Japanese inn (ryokan) with Japanese-style rooms, hot spring baths fed by natural springs, and views of the Akaishi (Southern Alps) mountains. Visitors can book a stay at Nishiyama Onsen Keiunkan.
History of the hotel industry: FAQs
Below are answers to some of the most common questions about the history of the hotel industry.
What is the oldest hotel in the world?
The oldest hotel in the world is Nishiyama Onsen Keiunkan in Yamanashi, Japan, which was founded in AD 705 and has been run by the same family for more than 50 generations, according to Guinness World Records.
When were the first hotels built?
Forms of commercial lodging date back to ancient times, including inns and hospitia in Ancient Rome. The word ‘hotel’ began to be used in England in the 18th century, with one of the first opening in Exeter in 1768.
What was the first modern hotel?
Tremont House in Boston, which opened in 1829, is often described as the first modern hotel, as it was the first to offer indoor plumbing, a reception desk, locks on guest-room doors and free soap.
How did the internet change the hotel industry?
The internet allowed travellers to compare prices and reviews and book online, led to the rise of online travel agencies such as Booking.com and Expedia, and created competition from platforms such as Airbnb.
How did COVID-19 affect the hotel industry?
COVID-19 caused hotel occupancy to collapse in 2020, but the industry has since recovered, with the pandemic accelerating changes such as contactless check-in and enhanced cleaning.
History of the hotel industry: Further reading
If you found this article on the history of the hotel industry useful, these articles may also be of interest:
- Homestay tourism: What is a homestay?
- The hotel star rating system explained
- 20 popular types of hotels around the world
- The tour operator: What, why and how
- Visiting friends and relatives (VFR): A simple explanation
- The appeal of tourist destinations | What attracts tourists
- Types of accommodation | Understanding tourism
