Opportunity for Luxury Travel is Expected to Flourish the Luxury Hotels Market
Author : Purvaja Jadhao | Published On : 23 Jan 2024
The luxury hotels market comprises premium accommodations, resorts, and spas that provide bespoke services and facilities to guests. Luxury hotels offer amenities such as private check-in and check-out services, concierge services, fine dining options, business centers, swimming pools, fitness centers, spas, and meeting/banquet facilities. They are frequented by business travelers, celebrities, high-net-worth individuals, and vacationers seeking sophisticated hospitality experiences.
The global luxury hotels market is estimated to be valued at US$ 164.52 Mn in 2023 and is expected to exhibit a CAGR of 3.8% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Driver 1: Growing opportunities for luxury travel- The emergence of more ultra-high-net-worth individuals globally with increased disposable incomes is driving the demand for luxury hotels and resorts. According to Knight Frank Wealth Report 2021, the number of millionaires is expected to grow by 46% to 58.1 million people by 2026. Furthermore, relaxation of travel restrictions post-pandemic has boosted bookings at luxury accommodations.
Driver 2: Enhanced hotel amenities and services- Luxury hotel chains are focusing on differentiating service experiences through unique amenities and locally immersive offerings. Some hotels are introducing wellness-focused services such as in-suite fitness sessions, nutrition consultations, sound baths, and spiritual healing experiences. Customized itineraries, private dining experiences, and state-of-the-art hospitality technology are luring global travelers.
Segment Analysis
The luxury hotels market is primarily segmented into business hotels, airport hotels and resorts &spas. Among these, the resorts & spas segment dominates the market and accounts for around 40% share due to the high spending by customers on luxurious accomodation, food and spa/wellness services. Customers now prefer to spend vacations in luxury resorts offering world class amenities and services rather than conventional hotels.
PEST Analysis
Political: The government policies regarding tourism and hotel industry play a key role in market growth. Most governments promote tourism by providing incentives to luxury hotel brands.
Economic: A strong economy with rising incomes boosts leisure travel and spending on luxury stays. The growth in international travel from emerging nations drives demand.
Social: Changing lifestyles and increasing leisure travel influence the market. Customers prefer unique and personalized experiences over standard hotel rooms.
Technological: Technologies like virtual & augmented reality, IoT, automation aid customer experience in luxury hotels. Advanced amenities and seamless digital services enhance the overall stay.
Key Takeaways
The Global Luxury Hotels Market Share is expected to witness high growth over the forecast period. The global luxury hotels market is estimated to be valued at US$ 164.52 Mn in 2023 and is expected to exhibit a CAGR of 3.8% over the forecast period 2024 to 2031.
Regional analysis
The Asia Pacific region accounts for over 30% share of the global luxury hotels market led by countries like Thailand, China and India. Thailand is one of the fastest growing luxury hotel destinations in Asia Pacific. Several international luxury hotel brands are opening properties in tourist destinations across the country to tap the growing demand.
Key players
Key players operating in the luxury hotels market include Bader GmbH & Co. KG, Bovine Leather, GST Autoleather Co. Ltd., Classic Soft Trim, and Ctl Leather Inc. These brands are expanding their existing network of luxury hotel properties globally. Classic Soft Trim specializes in luxury fittings and aims to enhance customer experiences through innovative products.
For more insights, Read- https://www.ukwebwire.com/luxury-hotels-market-demand-size-and-share/
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