|Fastest Growing Market:||North America|
|Largest Market:||North America|
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The luxury hotel market was valued at USD 174.9 billion in 2020, and it is projected to register a CAGR of more than 4% during the forecast period (2021-2026).
The luxury hotel market faced losses in 2020 due to the sudden fall in tourism amid the COVID-19 pandemic. The tourism sector has already felt the negative impact of the pandemic on its performance much earlier. Globally, travel restrictions and measures started as early as January 2020. Domestic and international tourists limited their travel due to fear of contracting COVID-19.
The rise in the travel and tourism industry and changing patterns in the standard of living have led to progressive growth in the luxury hotel market trends. The demand for luxury hotels varies with the type of properties and is influenced by factors such as location, size, and on-site properties. Rising disposable income, popularizing weekend culture, the introduction of low-cost airline services, and the booming service sector are expected to drive the market. The inflation in purchasing power and standard of living are some of the key constituents responsible for attracting customers toward luxury resorts. Hosting sports events by a city or country is also a significant factor propelling the demand for luxury accommodations. Sports teams, as well as spectators traveling from different destinations for the tournament, tend to book their stays in luxury hotels, leading to a surge in the number of bookings. Dominant players in the market are investing profoundly in infrastructure and upgrading their property with the latest accessories to enhance aesthetics and the overall comfort offered to customers. The North American region is expected to dominate the market, followed by Europe, over the forecast period. The business hotel segment is leading and is expected to dominate the market.
Scope of the report
A luxury hotel is defined as a hotel that provides a luxurious accommodation experience to the guest. Luxury hotels typically accommodate high-paying guests, and the services and dining are expected to be of high quality. A complete background analysis of the luxury hotel market, which includes an assessment of the market, emerging trends by segments and regional markets, significant changes in market dynamics, and market overview, is covered in the report. The Market Is Segmented By Type (Business Hotels, Airport Hotels, Suite Hotels, Resorts, and Other Hotels) and By Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).
|By Service Type|
|Other Service Types|
Key Market Trends
Increasing Digitization of Services and Online Booking on Apps and Websites
Luxury hotels take direct bookings on their own hotel brand sites. Hilton launched a campaign aptly called “Stop Clicking Around,” alluding to the well-known statistic that global travelers browse an average of 38 websites before booking. Apps are increasingly important in the way hoteliers manage the services they provide to their customers and can now control many aspects of the guest cycle and experience. The trend toward digital and contactless services gained new momentum in 2020. Traditionally, customer-facing services are being given an overhaul, owing to the more widespread use of technology-assisted options, such as mobile check-in, contactless payments, voice control, and biometrics. Consumers who have become accustomed to unlocking their smartphones and laptops using facial and fingerprint recognition will soon come to expect the same convenience in accessing their hotel rooms.
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Growing Trend of Availing Luxurious Lifestyle While Travelling
There is a growing trend of experiencing a luxury lifestyle during vacations or holidays among travelers. They see it as a totally relaxing and rejuvenating experience during vacation. This is becoming the trend among newly married couples and senior citizens, as they sum up this luxury stay as a lifetime experience. In the luxury hotel industry, it has become a trend to market their offerings while maintaining their brand image; for this, many strategies and endorsements are being practiced.
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The report covers major international players operating in the luxury hotel market. In terms of market share, few of the major players currently dominate the market. However, with factors such as technological advancements and service innovations, infrastructure development by local government and other facilities are attracting businesses and tourists.
Developments in 2020
- In November 2020, Paris-based hotel company Accor and London-based hospitality firm Ennismore entered exclusive negotiations to form what they are claiming will be the world’s leading lifestyle operator in the hospitality sector. Through this all-share merger, a new autonomous asset-light entity will combine the Hoxton, Gleneagles, Delano, SLS, Mondrian, SO/, Hyde, Mama Shelter, 25h, 21c Museum Hotels, Tribe, Jo&Joe, and Working From brands.
- In February 2020, London-based Hamilton Hotel Partners and Boston-based Pyramid Hotel Group completed the merger of the two businesses. The combined business or asset manages 141 hotels with 32,000 rooms across eight countries.
Table of Contents
1.1 Study Deliverables
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Value Chain/Supply Chain Analysis
4.5 Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Service Type
5.1.1 Business Hotels
5.1.2 Airport Hotels
5.1.3 Suite Hotels
5.1.5 Other Service Types
5.2.1 North America
22.214.171.124 United States
126.96.36.199 Rest of North America
188.8.131.52 United Kingdom
184.108.40.206 Rest of Europe
220.127.116.11 South Korea
18.104.22.168 Rest of Asia-Pacific
5.2.4 South America
22.214.171.124 Rest of South America
5.2.5 Middle-East and Africa
126.96.36.199 United Arab Emirates
188.8.131.52 Saudi Arabia
184.108.40.206 South Africa
220.127.116.11 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Company Profiles
6.1.1 ITC HOTELS
6.1.2 Marriott International Inc.
6.1.3 Accor SA
6.1.4 Belmond Ltd
6.1.5 Four Seasons Hotels Limited
6.1.6 InterContinental Hotels Group PLC
6.1.7 Rosewood Hotels & Resorts
6.1.8 Ritz-Carlton Hotel Company LLC
6.1.9 Hyatt Corporation
6.1.10 Shangri-La International Hotel Management Ltd
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Global Luxury Hotel Market market is studied from 2017 - 2026.
What is the growth rate of Global Luxury Hotel Market?
The Global Luxury Hotel Market is growing at a CAGR of >4% over the next 5 years.
Which region has highest growth rate in Global Luxury Hotel Market?
North America is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Global Luxury Hotel Market?
North America holds highest share in 2020.
Who are the key players in Global Luxury Hotel Market?
ITC HOTELS, Marriott International Inc, Accor S.A., Belmond Ltd., Hyatt Corporation are the major companies operating in Global Luxury Hotel Market.