Luxury Hotel Market Overview:
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. The global luxury hotel market generated revenue of $15,535 million in 2015, and is expected to grow at a CAGR of 4.0% to reach $20,442 million by 2022. 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.
Players have adopted acquisition, agreement, and partnership & mergers as their key strategies to increase their market share. For instance, in 2015, Marriott International acquired Starwood Hotels and Resorts Worldwide Inc. with an objective to become the world’s largest hotel company. Furthermore, companies enter into agreement with other key players operating within a nation as well as in the international market.
Presently, the business hotel segment accounts for the highest market share, owing to rise in business travelers worldwide. Resorts segment is expected to witness the fastest growth rate from 2016 to 2022 due to consumer preference, as resorts provide locations and amenities that are different and unique from other luxury hotels.
Geographically, the market is classified into North America (U.S., Canada, and Mexico), Europe (France, Germany, Italy, Spain, UK, and rest of Europe), Asia-Pacific (China, South Korea, Thailand, Japan, India, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
Top Impacting Factors
Rise in Travel & Rourism Industry
In most of the countries, travel & tourism industry generates the major revenue, and rely on this industry for their GDP share. The tourism industry is driven by social, religious, recreational, knowledgeable, and business purpose; and increase in interest among people to experience adventure & entertainment.
Statistics for Tourist Arrival in Various Geographies, 2012 - 2014
Growth in Preference for Leisure Travel
Rise in number of travelers globally and change in standard of living fuel the preference for leisure travel. Almost half of the international tourist arrivals are for the purpose of leisure.
Emergence of New Luxury Hotels
Eco Hotel, Scattered Hotel, Tree House Hotel, Ice Hotel, Capsule Hotel, Yurt, and others have recently emerged, which have led to increase in number of travelers.
Top Impacting Factors
Top Winning Strategies
Key market players have implemented various strategies such as acquisition, partnership & agreement, merger, and geographical expansion.
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. For instance, in 2015, Jumeirah Group and member of Dubai Holding launched Jumeirah Inside, which allowed users to experience the luxury of Jumeirah properties and make online hotel bookings.
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.
- This report provides insights on current and future trends of luxury hotel industry from 2016 to 2022.
- Market intelligence for key developmental strategies adopted by established brands are explained with impact analysis.
- This report provides a practical evaluation of key market drivers and restraints for global market.
- This report emphasizes on key factors that affect the market growth and reveals the influencing factors to capitalize on.
Luxury Hotel Market Key Segmentation
- Business Hotels
- Airport Hotels
- Suite Hotels
- North America
- Rest of Europe
- South Korea
- Rest of Asia-Pacific
- Latin America
- Middle East
- Four Seasons Holdings Inc.
- Intercontinental Hotels Group
- Marriott International Inc.
- Hyatt Corporation
- ITC Hotels Limited
- Shangri-La International Hotel Management Ltd.
- Jumeirah International LLC
- The Indian Hotel Companies Limited