Pet Hostel Market Size, Share & Industry Analysis, By Pets (Dogs, Cats, and Others), By Service Type (Short Term and Long Term), and Regional Forecast, 2025-2032

The global pet hostel market size was valued at USD 13.59 billion in 2024. The market is projected to grow from USD 14.28 billion in 2025 to USD 20.84 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.54% over the forecast period. North America dominated the pet hostel market with a market share of 34.88% in 2024.

Pet hostels, also known as pet boarding services, are specialized facilities that offer temporary accommodation and care for pets while the owners are away. These hostels ensure pets receive proper food, water, exercise, playtime, socialization, and comfortable living space. Furthermore, major key players in the market include Dogtopia Enterprises, Pet Paradise, K9 Resorts, Camp Bow Wow, and PetsVille. Increasing number of pet owners across countries encourages industry players to emphasize geographical expansion. At a macro level, expanding working population and an increasing number of pet boarding services increases the global market share.

MARKET DYNAMICS

Market Drivers

Rising Pet Ownership Across Countries to Drive Market Growth

Pets are increasingly being considered as integral family members of households globally. The rising pet ownership and households owning a pet across countries leading to the upsurge in pet populations across the globe propels the market growth. According to the American Veterinary Medical Association (AVMA), a U.S.-based non-profit organization, the number of cat-owing and dog-owning households across the U.S. increased to 101.9 million in 2024 from 92.1 million in 2023. Additionally, according to the European Pet Food Industry Federation (FEDIAF), a Europe-based pet food association, over 166 million European households had a pet in 2022. Moreover, increasing disposable income among individuals allows pet owners to spend more on pet care services, including pet boarding services, driving the global pet hostel market growth.

Increasing Working Population and Growing Number of Pet Boarding Establishments to Boost Market Growth

An increasing number of working individuals fuel market growth. According to the World Bank Group, an international organization, total employees worldwide increased to 3.63 billion in 2023 from 3.55 billion in 2022. Working individuals, particularly dual-income families, commonly require pet boarding for pet daycare services as they are in the office daily.

Moreover, extended working hours, night shifts, and unpredictable work schedules make it difficult for pet owners to provide consistent care, thus fueling the demand for pet boarding services. The growing number of pet boarding facilities, due to increasing demand for daycare facilities and overnight stays for pets from pet owners, drives the market growth. Additionally, increased awareness regarding pets' overall well-being and the availability of specialized pet care services have encouraged pet owners to opt for pet boarding facilities rather than leaving their pets alone at home.  

Market Restraints

Rising Operational Costs to Restrict Market Growth

The rising operational costs to establish and maintain pet boarding and hostels limit the market growth. Establishing pet boarding facilities requires a large initial capital investment in land, building, and setup. These facilities typically require specialized infrastructure, such as kennels, play areas, climate-controlled rooms, hygienic floorings, and security systems. Additionally, continuous cleaning, sanitization, and pest control are required to maintain a hygienic environment that ensures the pet’s safety. Furthermore, the market heavily relies on trained professionals, including pet caretakers, veterinarians, and trainers. These factors lead to an increased operational cost, thus restraining the market growth.

Market Opportunities

Rising Popularity of Luxury Pet Boarding Facilities to Drive Market Growth

The popularity of luxury hostels is growing rapidly across countries owing to the increasing number of high-net-worth individuals and growing disposable income among individuals. The wide availability of personalized and customized experiences across luxury facilities provides opportunities for the market to grow. Several prominent industry participants are launching new luxury boarding facilities to attract high-net-worth consumers. For instance, in January 2025, K9 Resorts, a U.S.-based dog boarding & daycare company, launched its new premium resort, K9 Resorts Pompano Beach in Florida. The new resort features luxury boarding suites and premium Kuranda pet beds. In August 2023, My Second Home, a UAE-based pet resort & spa, launched its new luxury daycare and boarding facility exclusively for small dogs in Dubai.

Market Challenges

Availability of Alternative Services to Hamper the Market

The rising availability of alternative pet care services, including pet-sitting apps, in-home pet boarding, and dog walking services that provide more flexible and personalized options, hampers the market growth. Several pet owners usually prefer hiring pet sitters to care for pets at home. This option is widely popular for pets with separation anxiety, medical needs, and aggressive behavior, which may not be well suited for hostels. All these factors collaboratively hamper the market growth.

Pet Hostel Market Trends

Growing Popularity of Mobile Apps with Innovative Features to Provide Growth Opportunities

The popularity of mobile apps with various innovative features, including real-time video streaming, customized meal plans, instant check-in & reservations, integrated GPS & smart tracking for pet transport, loyalty rewards, and digital payments, is growing significantly among tech-savvy pet owners. Several market players focus on launching new apps, improving consumer convenience, and enhancing the overall experience. In April 2023, Camp Bow Wow, a U.S.-based dog boarding and daycare company, launched its new mobile app for pet owners to make reservations, check-in, and webcam viewing. This new app allows easy uploading of vaccination records, care information, and managed feeding, letting consumers save time at check-in.

Impact of COVID-19

The COVID-19 pandemic significantly impacted the market owing to lockdowns imposed worldwide by the governments in 2020. The demand for pet boarding/hostels was highly impacted owing to the restrictions imposed, which led to a decline in international travel. Social distancing regulations and workforce shortages made it challenging for hostels to operate efficiently. Furthermore, pet owners' preference for online shopping grew rapidly during the pandemic. According to the National Pet Owners Survey 2021-2022 by the American Pet Products Association (APPA), a U.S.-based pet industry association, online shopping among pet owners across the U.S. increased to 86% in 2021 from 72% in 2020.

SEGMENTATION ANALYSIS

By Pets

Dogs Segment Led the Market Due to Growing Number of Dog-Owned Households

The market is segmented into dogs, cats, and others based on pets. The dogs segment dominated the market in 2024 owing to the growing number of dog-owning households and the wide availability of dog hostels worldwide. According to the American Veterinary Medical Association (AVMA), a U.S.-based non-profit organization, dog-owning households increased from 53.4 million in 2023 to 59.8 million in 2024. Moreover, growing urbanization has led to small houses and apartments. Hence, several dog owners prefer dog hostels while out of town, ensuring their dogs get exercise, companionship, and professional attention.

The cats segment is expected to expand significantly over the forecast period due to the increasing adoption of cats as pets across countries. According to the European Pet Food Industry Federation (FEDIAF), a Europe-based pet food association, pet cats increased from over 110 million in 2020 to over 129 million in 2022 across Europe. Moreover, the increasing popularity of feline-specific hostels among cat owners catering to their pet’s unique needs, such as quiet spaces, private enclosures, stress-free environments, and specialized diets, is expected to propel the segment growth in coming years.

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By Service Type

Rising Number of Working Individuals across Countries Fueled Short-Term Segment Growth 

The global market is divided into short term and long term based on service type. The short term segment held the largest revenue share in 2024 owing to the rising number of working individuals with busy schedules and daily offices. Working pet owners usually leave their pets at boarding facilities on the way to their office for daycare. Moreover, the trend of short trips and weekend getaways worldwide fuels the segment's growth.

The long term segment is expected to grow significantly in the coming years owing to increasing leisure and business travel among pet owners seeking proper stay & care facilities for their pets for extended periods. Moreover, pet owners going outstation for a long duration usually prefer facilities with veterinary support, 24/7 supervision, experienced caregivers, and a comfortable environment ensuring their pet’s safety. These factors are expected to drive the segment’s growth throughout the forecast period.   

Pet Hostel Market Regional Outlook

Geographically, the market is segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

North America

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North America accounted for the largest pet hostel market share in 2024 owing to the wide availability of pet hostel & boarding facilities across the U.S. & Canada and rising pet adoption among individuals. Various market players are launching new pet centers to expand their regional reach. For instance, in May 2023, Pet Paradise, a U.S.-based pet boarding services company, launched its new pet care center, Pet Paradise Birmingham, in Alabama, U.S. According to the company, the new center offers a wide range of services, including overnight boarding.  

The U.S. is the most prominent country in the region due to the high presence of key industry participants and a growing number of household pets countrywide. According to the American Veterinary Medical Association (AVMA), a U.S.-based non-profit organization, in 2024, 45.50% of households owned pet dogs, and 32.10% owned pet cats across the U.S.  

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Europe

The market in the Europe region is expected to grow significantly throughout the forecast period owing to increasing pet ownership and pets being regarded as integral family members, leading to growing spending on pet care services. According to the European Pet Food Industry Federation (FEDIAF), a Europe-based pet food association, in 2022, there were 352 million pets across Europe. The rise in the daily working population across countries seeking daycare facilities for their pets drives the market growth. For instance, according to Eurostat, a government agency of the European Union (EU), in 2023, the number of employed individuals aged 20-64 across Europe was 195.7 million. Moreover, the popularity of pet boarding facilities is rising significantly owing to the growing number of domestic tourists seeking boarding services for their pets across countries for weekend getaways and short trips. According to Eurostat, a government agency of the European Union (EU), 49% of European tourists made only domestic trips in 2023, compared to 48% in 2019.  

Asia Pacific

Asia Pacific is expected to grow significantly in the coming years owing to the growing number of pet owners, rising single-person households, and increasing disposable income among the middle-class population across the region. Moreover, the popularity of pet boarding facilities is rising significantly owing to the increasing number of working individuals across China, India, Japan, and Australia. According to the National Bureau of Statistics of China, a government agency, in 2023, there were over 740.41 million employed individuals across China.     

South America

The South American market is expected to grow steadily throughout the forecast period due to rapid urbanization and increasing disposable income among middle-class individuals. Moreover, the growing adoption of dogs and cats as pets among households across Brazil, Chile, Argentina, & Peru, coupled with the rising number of working individuals, drives the market growth. The growing availability of daycare and overnight boarding services across these countries is expected to drive the market throughout the forecast period.

Middle East & Africa

The Middle East & African region is expected to grow considerably throughout the forecast period owing to the increasing pet adoption among households across UAE, Saudi Arabia, and South Africa and the growing number of pet hostels and boarding facilities. Furthermore, several industry participants are launching new pet boarding facilities across the region to expand their reach. For instance, in February 2024, Petsville, a UAE-based pet boarding & grooming company, announced the launch of its new 20,000 sq. ft. daycare and boarding facility in Dubai Investments Park (DIP). According to the company, the facility will include over 100 boarding rooms, a 30-room cattery, and two chlorine-free pools.    

COMPETITIVE LANDSCAPE

Key Industry Players

Prominent Players Focus on Launching New Hostels to Expand Their Reach

The global market is characterized by intense competitive rivalry. International prominent market players leverage their strong brand loyalty & presence to stay ahead of the competition. Several key market players are focusing on expanding their reach by launching hostels and boarding facilities across countries.

List of Key Pet Hostel Companies Profiled

• Dogtopia Enterprises (U.S.)


• Pet Paradise (U.S.)


• Petfelix (India)


• K9 Resorts (U.S.)


• Camp Bow Wow (U.S.)


• PetsVille (UAE)


• BJ’s Pet Resort & Spa (U.K.)


• Nekoya Cat Hotel (Singapore)


• Paws & Collars (India)


• Wag Hotels (U.S.)

KEY INDUSTRY DEVELOPMENTS

• December 2024: Happy Cat Hotel & Spa, a U.S.-based cat care services company, launched its new hotel & spa in Albuquerque, Mexico. According to the company, the new hotel & spa offers various services, including cat boarding and grooming.


• February 2024: Propelled Brands, a U.S.-based company, acquired Camp Bow Wow, a U.S.-based dog boarding and daycare company, to enter into the pet services industry owing to increasing dog ownership among households nationwide.


• January 2024: Pet Resort Hospitality Group, a U.S.-based pet boarding and daycare company, acquired five pet resort brands: Meadowlake Pet Resort & Training Center, Olde Towne Pet Resorts, Playtime Pet Resort, Paws ‘n’ Rec, and Williamsburg Pet Hotel & Suites. According to the company, the acquisition will strengthen its services, including daycare, boarding, grooming, and training countrywide.


• June 2023: Destination Pet, a U.S.-based pet services company, acquired Pet Palace Pet Boarding Resort, a U.S.-based pet care facility. According to the company, the new acquisition will strengthen its presence nationwide, especially in Ohio, Indiana, North Carolina, & Pennsylvania, and provide access to new markets.


• April 2023: Pet Paradise, a U.S.-based pet services company, launched its new pet care resort, Pet Paradise Lake Buena Vista, in Florida, U.S., with boarding space featuring air-conditioned suites for dogs and condos for cats. According to the company, the new resort includes an outdoor bone-shaped swimming pool, splash pads, and a large shaded play yard with misting stations.

Investment Analysis and Opportunities

The pet hostel market report provides comprehensive investment analysis and opportunities in the pet services industry, including the pet care market & pet boarding services market, to provide investors and business leaders with various actionable insights. Manufacturers can focus on launching new pet hostels across countries to expand their reach and strengthen their brand presence among pet owners.        

REPORT COVERAGE

The pet boarding services report analyzes the market in-depth and highlights crucial aspects such as prominent companies, pets, and service type. Besides this, the research report also provides insights into the pet care industry coupled with market trends analysis, pet boarding services market size, and global pet hostel market share.  

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Report Scope & Segmentation