The global luxury hotel market size was valued at USD 92.6 billion in 2020 and is expected to expand at a robust CAGR during the forecast period, 2021–2028. The growth of the market is attributed to wide expansion of tourism industry and rapid growth of corporate businesses associated with the hospitality industry in many locations across the globe. Moreover, rising disposable income, changing standard of life, and increasing inclination towards leisure travel among a large number of the global population present another key factors for the market expansion.
A luxury hotel offers a premium staying experience of customers by providing attractive services and facilities. As a means to attract tourists, hotels strive to provide a high level of comfort with ease facilities ranging from interior design and cuisine choices to expanded sorts of services such as spas, gyms, swimming pools, and laundry. Moreover, the luxury hotel are consistently sustained by lavish stays experience during family vacation by providing over-the-top facilities for high management executives during business visits.
The COVID-19 pandemic had resulted in tight lockdown regulations across countries throughout the world that affected several hospitality activities such as social gatherings and traveling. Several booked excursions had to be cancelled due to restriction of air travel as part of movement restriction to keep viral spread under control. These factors had negatively impacted market expansion.
Market Trends, Drivers, Restraints, and Opportunities
- Hosting of sporting events and several gaming tournaments including poker and mobile gaming competition by various countries are key factors driving demand for the market expansion.
- Rising spending power and increasing level of changing lifestyle are two important elements anticipated to propel the growth of the market during the forecast period.
- Extensive investment in infrastructure and renovation in properties with cutting-edge technology to improve the aesthetics and overall comfort supplied to clients are driving the market growth.
- Increasing presence of inexpensive and mid-scale hotels are major challenges that can hinder the market expansion.
- Contactless payments, smartphone activation of room keys or locks, kiosk-assisted self-service check-ins, and digital messaging services for hotel workers are key factors anticipated to provide lucrative opportunities for market growth.
Scope of the Report
The report on the global luxury hotel market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Luxury Hotel Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Types (Airport Hotels, Holiday Hotels, Resorts & Spas, Business Hotels, and Others)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
Shangri-La International Hotel Management Ltd.; InterContinental Hotels Group; AccorHotels; Taj Hotels Palaces Resorts Safari; Four Seasons Hotels Limited; and Marriott International, Inc.
Market Segment Insights
Business hotels segment to expand at a considerable CAGR
On the basis of types, the luxury hotel market is segmented into airport hotels, holiday hotels, resorts & spas, business hotels, and others. The business hotels segment is projected to expand at a considerable CAGR during the forecast period owing to expansion of corporate-based hotels for various leisure stay. On the other hand, the resorts & spas segment is anticipated to account for a major market share during the forecast period as a rising inclination for leisure travel specifically intended to assist guests in relaxing and taking a break from their everyday routines.
North America to constitute a key market share
In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to constitute a key share of the market during the projected period as the region has been one of the most popular destination for tourists and visitors from all over the globe. However, the market of Europe is anticipated to expand at a rapid pace during the forecast period due to massive governments’ efforts to promote tourism in their countries and local communities by raising awareness of architectural or historical value of their monuments and architects.
Segments Covered in the Report
The global luxury hotel market has been segmented on the basis of
- Airport Hotels
- Holiday Hotels
- Resorts & Spas
- Business Hotels
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
- Shangri-La International Hotel Management Ltd.
- InterContinental Hotels Group
- Taj Hotels Palaces Resorts Safari
- Four Seasons Hotels Limited
- Marriott International, Inc.
Key players competing in the global luxury hotel market are Shangri-La International Hotel Management Ltd.; InterContinental Hotels Group; AccorHotels; Taj Hotels Palaces Resorts Safari; Four Seasons Hotels Limited; and Marriott International, Inc.
In March 2017, for example, AccorHotels established a strategic alliance with Rixos Hotels to extend its geographical footprint in Russia, Egypt, the United Arab Emirates, and Turkey. To increase their geographical presence, market players are constantly engaged in mergers and acquisitions and strategic alliances.