Luxury Hotel Market Research, 2031
The global luxury hotel market was valued at $95,113.00 million in 2020, and is projected to reach $160,481.23 million by 2031, growing at a CAGR of 5.1% from 2022 to 2031.
Travel and tourism industry is an important sector, which acts as a revenue generator for most of the countries. Many countries are dependent on their tourism sector as their GDP share. As the number of travellers around the world is on an increase, so is the travel and tourism industry. Tourism industry is driven by the social, religious, recreational, knowledge, business purpose and interest among people to experience new kind of adventure and entertainment. It is one of the major shares in the GDP of a country.
Luxury hotels provide luxurious stay along with various other services such as swimming pool (warm & fresh water), barbeque, spa, gyms, bar and other tailor-made services as per the desire and comfort of customers. Several such hotels also provide private garden or private area on beach along with personal sunbeds, to distinguish themselves from other players. Rise in travel & tourism industry, growth in preference for leisure travel, and change in standard of living have led to progressive luxury hotel market trends.
As the number of travellers are on an increase, travel for holidays, recreation, and other forms of leisure is also on a rise. Almost, half of the international tourist arrival is for the purpose of leisure. Leisure travel depends mostly on the standard of living. Rise in standard of living encourages people more toward leisure stay which is expected to push luxury hotel market size.
The luxury hotel industry has always focused on the location aspect as the success factor. A hotel located in an important location is expected to perform well with the services and amenities being followed as compared to the hotel located in a less important area. For the people who travel a lot mostly require the airport hotel instead of staying within the city, similarly people looking forward to enjoy the scenic view need to opt for the hotel near the place they want to visit. Hence, location is always important for the luxury hotel market.
Travel and tourism is one of the important economic activities for a country. There has been rise in the travel and tourism industry as the number of tourist arrivals has taken a leap in the world’s GDP. The major shift has been recorded in the Europe followed by Asia-Pacific, Americas and Rest of the world. Travel and tourism industry is expected to perform at a solid growth. The growth in the forecast period also seems to be favourable for the countries.
The world luxury hotel market focuses mainly on the type and geographical segment. The luxury hotels type segment includes airport hotels, business hotels, suite hotels, resorts, and others (eco hotel and serviced apartment). Based on the category, the luxury hotel industry is analysed by chain and independent nature of businesses.
The world luxury hotel market can be classified into airport hotels, resorts, business hotels, suite hotels and others. The major portion of the world luxury hotel market by type is covered by business hotels by ~40% followed by airport hotels. The demand for such types of hotels with recreational activities is expected to increase during the forecast period.
By category, independent hotels are the fastest growing segment owing to the increased interest in customized services at low cost. In addition, chain businesses segment is dominant in luxury hotel market share.
As far as the regional segmentation is concerned, the global luxury hotel market is segmented into North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific is expected to register fastest growth during the luxury hotel market forecast period owing to the increasing intrests of people towards luxurious experience.
The major market players such as Four Seasons Holdings Inc., Intercontinental Hotels Group, Marriott International Inc., Hyatt Corporation., ITC Hotels Limited, Shangri-La International Hotel Management Ltd., and Jumeirah International LLC develop their product portfolios to strengthen their foothold in the market. The companies profiled in the report are Four Seasons Holdings Inc., Intercontinental Hotels Group, Marriott International Inc., Hyatt Corporation., ITC Hotels Limited, Shangri-La International Hotel Management Ltd., Jumeirah International LLC, and The Indian Hotel Companies Limited.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the luxury hotel market analysis from 2020 to 2031 to identify the prevailing luxury hotel market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the luxury hotel market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global luxury hotel market trends, key players, market segments, application areas, and market growth strategies.
Luxury Hotel Market Report Highlights
Key Market Players
FOUR SEASONS HOLDINGS INC., HYATT CORPORATION, SHANGRI-LA INTERNATIONAL HOTEL MANAGEMENT LTD, JUMEIRAH INTERNATIONAL LLC, THE INDIAN HOTEL COMPANIES LIMITED, ITC HOTELS LIMITED, kempinski hotel san lawrenz, MARRIOTT INTERNATIONAL INC., INTERCONTINENTAL HOTELS GROUP, Jardine Matheson Holdings Ltd
North America has emerged as the largest market for luxury hotels, and is anticipated to grow at a notable pace, owing to rise in the number of business travelers and others. Europe showed the fastest growth rate for resorts during the forecast period due to increase in international tourist arrivals and emergence of new hotels in countries such as Germany, France, Italy, and the UK.
The demand for luxury hotels is lower in developing countries as compared to developed markets. However, Asia-Pacific is expected to grow at a notable pace in next five years, owing to growth in preference for leisure travel and rise in travel & tourism industry. Japan accounted for the largest market size in the overall Asia-Pacific luxury hotel market.
Market players explore innovative products and services to strengthen their presence and meet the growing demands. Established brands have adopted merger, and agreement & partnership as their prominent growth strategies to strengthen their foothold in the market.