Growing Demand for Luxurious Stay Power the Global Luxury Hotel...

Growing Demand for Luxurious Stay Power the Global Luxury Hotel Market

Posted 2023-11-01 10:30:46

The global Luxury Hotel Market is estimated to be valued at US$ 128.54 Bn or Mn in 2023 and is expected to exhibit a CAGR of 11.1% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Luxury Hotel offer exclusive amenities and facilities for enhanced guest experience. They provide luxurious rooms, suites and villas along with bespoke services and indulgent amenities like spas, golf courses, pools and private beaches. Such lavish stay experiences cater to high-income travelers seeking enriched vacations.

Market key trends:
One of the key trends prevailing in the luxury Hotel market is growing demand for unique stay experiences. Luxury travelers today expect personalized and tailored experiences beyond standard luxury amenities. Hotel are focused on curating distinct offerings through premium services and packages revolving around wellness, lifestyle activities, local culture and cuisine. For instance, Hotel partner with elite chefs and sommeliers for personalized dining and mixology experiences. Some Hotel host interactive workshops on arts, crafts and culinary skills of a destination. This drives unique experiences and higher room rates for luxury properties. Additionally, growing focus towards sustainable luxury also influences design and operations of new luxury Hotel. They adopt green building practices and source locally to minimize environmental footprint.
Market key trends:
The Global Luxury Hotel Market has been witnessing a rising demand for unique and experiential stays. Customers expect luxury Hotel to offer bespoke services and one-of-a-kind amenities to enrich their travel experience. As a result, luxury hoteliers are focusing on enhancing the overall experience offered to guests through innovative offerings and services. For instance, luxury properties are personalizing services as per customer needs and preferences, offering local culinary experiences through signature restaurants, arranging custom activities and tours, etc. This trend has been fueling the growth of the luxury Hotel market.

SWOT Analysis
Strengths: Presence of internationally renowned brands with strong legacy and reputation; Wide service portfolio including fine dining, spa, wellness and exclusive amenities.
Weaknesses: Higher operating costs compared to standard Hotel; Vulnerable to economic downturns affecting discretionary spending.
Opportunities: Growth opportunities in emerging economies with rising affluent population; Increased MICE travel and business events.
Threats: Threat from alternative accommodation options like homestays and boutique Hotel; Stringent government regulations regarding tourism activities.

Key Takeaways
The global luxury Hotel market is expected to witness high growth, exhibiting CAGR of 11.1% over the forecast period, due to increasing business and leisure travel globally.

The Asia Pacific region is expected to witness the fastest growth in the luxury Hotel market over the forecast period. Countries like China, India, Indonesia, Thailand and Malaysia are experiencing rising incomes and an increasing preference for luxury experiences among the affluent population.

Some of the key players operating in the luxury Hotel market are The Indian Hotel Company Limited, InterContinental Hotel Group plc, Rosewood Hotel & Resorts, Oberoi Hotel & Resorts, Naman Retreat, Jumeirah International LLC, Shangri-La International Hotel Management Ltd., Hyatt Hotel Corporation, Accor S.A, Hilton Hotel & Resorts, and Marriott International, Inc.