The global luxury hotel market was valued at USD 93.59 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 3.8% from 2023 to 2030. This growth is driven by several factors, including the emergence of tourism and corporate sectors in various regions, rising disposable incomes, an increasing standard of living, and a growing preference for leisure travel.
The increase in purchasing power and improvements in living standards are key elements attracting customers to luxury resorts. As economic conditions improve, there is a corresponding rise in the demand for luxury accommodations, particularly for corporate events, business trips, and leisure vacations.
Additionally, the hosting of sports events by cities or countries has significantly contributed to the demand for luxury accommodations. Sports teams and spectators traveling from different locations for tournaments often choose to stay in luxury hotels, resulting in a notable increase in bookings during these events.
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Type Segmentation Insights
The market has been categorized based on hotel types, which include business hotels, airport hotels, holiday hotels, resorts and spas, among others. The business hotel segment held the largest revenue share at 33.2% in 2022. The emergence of the digital nomad lifestyle and the growing prevalence of remote work have introduced a new category of travelers who seek both leisure and business amenities in their accommodations. Luxury business hotels are effectively capitalizing on this trend by providing not only high-quality workspaces but also spa services, fine dining, and recreational facilities, thereby offering a comprehensive experience for their guests.
In addition, sustainability and eco-consciousness have become vital factors influencing consumer decisions, even within the luxury hotel sector. Many upscale business hotels are integrating eco-friendly practices and designs into their operations to align with the sustainability goals of modern businesses.
The resorts and spas segment is projected to achieve a compound annual growth rate (CAGR) of over 4.9% during the forecast period. With an increasing preference for leisure travel, there is a notable rise in demand for holiday resorts and spas specifically designed to help guests unwind and escape their daily routines. Major market players differentiate themselves by thematically categorizing their properties into various types, such as spa resorts, sea and spa resorts, beach resorts, mountain or ski resorts, and golf hotels to attract customers. For instance, the Sofitel Agadir Thalassa Sea & Spa in Morocco creates an atmosphere of tranquility through its use of white and black tones, blending elements of Moroccan culture with modern design. Some of the luxurious features of this resort include personal terrace suites, a private beach, and beautifully landscaped private gardens.
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