Luxury Hotels Market By Type ( Business Hotels, Suite Hotels, Airport Hotels, Resorts) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2015 - 2021
Global Luxury Hotels Market - Overview
Set to chart a sturdy growth trajectory over the forecast period, the global luxury hotels market would see a slew of growth opportunities lining its landscape between 2015 and 2021. A number of trends and drivers will help it chart this robust growth rate over the forecast period.
It is important to note here that an increase in disposable income and an aspirational middle class are major factors underscoring growth in the market.
Some of the prominent factors that are shaping up the way market operates over the forecast period are:
- The millennial population is majorly into travel and tourism for meeting cultural needs, reasons of personal growth, and peer pressure. As they take to travelling with an enthusiasm never seen before, market for luxury hotels will see an upward growth curve.
- Branding and marketing holds much sway in the market landscape, contributing positively to the growth of the market as a service hungry demographic witnesses complimentary services and gives its loyalty to customized and personalized experiences. This is a major contributor of growth over the forecast period.
Global Luxury Hotels Market: Snapshot
The healthy growth of the travel and tourism industry is allowing the global luxury hotels market to gain significant momentum. Rapid globalization and urbanization along with rising disposable are encouraging people to travel for vacations and business purposes, which in turn is escalating the development of the hotel industry worldwide. According to a report by Transparency Market Research, the global luxury hotels market will expand at a CAGR of 4.0% from 2015 to 2021, reaching a valuation of US$195.2 bn by the end of 2021.
Branding and promotions play a critical role in the growth of the market. In order to suit the constantly changing consumer requirements, luxury hotels are constantly trying to enhance their services. Their owners are paying high attention to implementing new services, including complimentary services and customization of rooms, with properly trained hotel staff in order to satisfy customers. Moreover, as people are becoming increasingly brand conscious, successful branding and marketing can increase the awareness and affinity of consumers and in turn loyalty. Apart from this, the increasing organization of international events is providing a tremendous boost to the luxury hotels market.
Business Hotels to Remain Most Prominent Segment through 2021
On the basis of type, the global luxury hotels market is divided into suite hotels, business hotels, resorts, airport hotels, and others, which include service apartments, casino hotels, and conference and convention centers. The business hotel segment will continue to account for the lion’s share in the market until 2021. The growing number of multinational companies and rapid globalization are contributing to the growth of the segment. Apart from this, aggressive branding and marketing strategies undertaken by existing players are also anticipated to boost the popularity of business hotels.
The segment will be closely trailed by airport hotels. The target consumers of this type of hotel are airline passengers with overnight layovers or cancelled flights, airline crew and staff, and business clientele. The increasing air traffic is supplementing the growth of the airport hotels segment. Resorts will be the most promising segment during the forecast period. The growing popularity of all-inclusive resorts along with the rising spending power is providing a significant push to the segment.
Changing Lifestyles of Populace to Help North America Retain Dominance until 2021
From the geographical standpoint, the report classifies the global luxury hotels market into North America, Asia Pacific, and Europe. In Rest of the World, the report primarily focuses on Saudi Arabia and Brazil. North America will continue to be the frontrunner in the global market until 2021. The growth of the region can be attributed to the high disposable income and change in consumer lifestyles. The increasing inclination towards all-inclusive resorts is also propelling the luxury hotels market in the region.
Europe will also hold a prominent position in the global arena, thanks to the rising spending power of the populace. Besides this, the highly lucrative travel and tourism industry in the region is positively impacting the European luxury hotels market. Asia Pacific, on the other hand, will rise at a noteworthy CAGR during the review period. The growth of the region is largely driven by the growing disposable income and rapid infrastructural development. The demand for luxury hotels in regions in Rest of the World is augmented by the rising number of international events and the improving standard of living.
Some of the prominent chain of luxury hotels around the world are Four Seasons Holdings Inc., InterContinental Hotels Group PLC, Starwood Hotels & Resorts, Jumeirah International LLC, Kerzner International Resorts Inc., The Indian Hotels Company Limited, Mandarin Oriental International Limited, ITC Hotels Limited, Shangri-La International Hotel Management Ltd., and Marriott International Inc.
Advancements in the domain of hospitality have played a defining role in driving sales across the global luxury hotels market. The presence of a sophisticated industry for managing stays and lodging at hotels has aided the growth of the market. People have become increasingly aware about various options available at their disposal for lodging and stay at new places. This factor, coupled with the development of new hotel chains, has given a thrust to the growth of the global luxury hotels market.
- Government entities are promoting travel and tourism to their areas of jurisdiction. This factor shall also play an integral role in driving sales across the market.
- A large population of the financially well-off sections conforms to the trend of annual and biannual holidays and trips. This factor has generated humongous revenues within the global luxury hotels market.
- Hotel managers are extensively recruited by large chains in order to enhance hospitality services at their premises. Besides, the uncontested need for luxury hotels at global holiday destinations shall also usher an era of growth and maturity. Countries in Europe host millions of tourists each year, and this factor has played a defining role in driving demand within the global luxury hotels market.
Luxury travel is one the fastest growing niche markets, making a serious contribution to sectors such as food and wine and cultural tourism. Statistics show that though the tourism industry has grown at an average rate of 4% every year, the luxury travel industry has surged at a rate of 48% in the past five years. This positive trend indicates that the global luxury hotels market is here to stay, due to changing consumer demands and upgrading of services by hoteliers across the world. A crucial component supporting the growth of the global luxury hotels market is the rising disposable income in several regions of the world as economies stabilize and strengthen.
The global luxury hotels market has been evaluated through a political, legal, social, environmental, and economic lens to understand the intricacies shaping the market. Furthermore, the research report also includes SWOT analysis and Porter’s five forces analysis to highlight the important factors governing the global luxury hotels market. The report focuses on answering questions pertaining to the size of the luxury hotels market and its scope in the coming years.
Overview of Global Luxury Hotels Market
In recent years, the global luxury hotels market has witnessed unprecedented growth due to the increasing standard of living, growth in the number of luxury living options, and a remarkable improvement in the service industry. Additionally, the global luxury hotels market is also being fueled by the rising travel and tourism industry. The impactful business and marketing strategies that are aimed towards creating and building brand awareness are also making a serious contribution towards the rise of the luxury hotels market in recent years. Owing to these reasons, several hoteliers are making sincere efforts towards making strong promotional campaigns. The options of online booking, rise of e-commerce, and simple check-in and check-out processes are also propelling the overall luxury hotels market.
According to the research report, the global luxury hotels market was valued at US$148.6 bn in 2014 and is expected to reach US$195.3 bn by 2021, rising at a CAGR of 4.0% from 2015 to 2021. The global luxury hotels market is segmented on the basis of hotel type into business hotels, airport hotels, suite hotels, resorts, and others. Geographically, this market is segmented into Europe, North America, Asia Pacific, and Rest of the World.
In terms of regions, North America held a dominant share in the global luxury hotels market in 2014. Analysts predict that this dominance will continue in the forecast period as the market in North America will surge at a CAGR of 5.4% between 2015 and 2021. This growth will be attributable to the burgeoning travel and tourism industry, along with drastically changing lifestyles that are defined by luxury travelling and living.
Companies Mentioned in the Luxury Hotels Market are:
Some of the key luxury companies profiled in the global luxury hotels market report are Four Seasons Holdings Inc., Starwood Hotels & Resorts, ITC Hotels Limited, InterContinental Hotels Group PLC, Mandarin Oriental International Limited, The Indian Hotels Company Limited, Jumeirah International LLC, Kerzner International Resorts, Inc., Marriott International, Inc., and Shangri-La International Hotel Management Ltd.
Global Luxury Hotels Market by Geography:
- North America
- Rest of the World
This report gives you access to decisive data such as:
- Market growth drivers
- Factors limiting market growth
- Current market trends
- Market structure
- Market projections for the coming years
Key highlights of this report
- Overview of key market forces propelling and restraining market growth
- Up-to-date analyses of market trends and technological improvements
- Pin-point analyses of market competition dynamics to offer you a competitive edge
- An analysis of strategies of major competitors
- An array of graphics and SWOT analysis of major industry segments
- Detailed analyses of industry trends
- A well-defined technological growth map with an impact-analysis
- Offers a clear understanding of the competitive landscape and key product segments
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
With a robust experience in creating exceptional market reports, Transparency Market Research has emerged as one of the trusted market research companies among a large number of stakeholders and CXOs. Every report at Transparency Market Research goes through rigorous research activity in every aspect. The researchers at TMR keep a close watch on the market and extract beneficial growth-boosting points. These points help the stakeholders to strategize their business plans accordingly.
TMR researchers conduct exhaustive qualitative and quantitative research. This research involves taking inputs from the experts in the market, focused attention on recent developments, and others. This method of research makes TMR stand out from other market research firms.
Here's how Transparency Market Research helps the stakeholders and CXOs through the reports:
Inculcation and Evaluation of Strategic Collaborations: The TMR researchers analyze recent strategic activities like mergers, acquisitions, partnerships, collaborations, and joint ventures. All the information is compiled and included in the report.
Perfect Market Size Estimations: The report analyzes the demographics, growth potential, and capability of the market through the forecast period. This factor leads to the estimation of the market size and also provides an outline about how the market will retrieve growth during the assessment period.
Investment Research: The report focuses on the ongoing and upcoming investment opportunities across a particular market. These developments make the stakeholders aware of the current investment scenario across the market.
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.
Chapter 1 Preface
1.1 Report Description
1.2 Market segmentation
1.2.1 Global luxury hotels market segmentation, by type and geography
1.3 Research scope
1.4 Research Methodology
Chapter 2 Executive Summary
2.1 Global Luxury Hotels Market Snapshot
2.2 Global Luxury Hotels Market Size, 2014 - 2021 (USD Billion)
2.2.1 Y-o-Y Growth, 2015-2021 (Value %)
Chapter 3 Global Luxury Hotels Market Overview
3.1.1 Various services of luxury hotels
3.1.2 Classification of luxury hotels market
3.2 Key Trend Analysis
3.3 Market Drivers
3.3.1 Drivers for luxury hotels market: Impact analysis
184.108.40.206 Branding and promotions
220.127.116.11 Growing travel and tourism industry
18.104.22.168 Changing consumer preference for luxurious lifestyle
22.214.171.124 Increasing number of international events
3.4 Market Restraints
3.4.1 Restraints for luxury hotels market: Impact analysis
126.96.36.199 Unstable political environment
188.8.131.52 Natural disasters such as storms, floods, and earthquake
3.5 Market Opportunities
3.5.1 New luxury hotels establishments
3.6 Market Attractiveness Analysis for global luxury Hotels Market
Chapter 4 Global Luxury Hotels Market Revenue, By Type, 2014-2021
4.1.1 Revenue, 2014-2021 (In USD Billion)
4.1.2 Y-o-Y Growth, 2015-2021 (Value %)
4.1.3 Market Share, 2014 Vs 2021 (%)
4.2 Business Hotels
4.3 Suite Hotels
4.4 Airport Hotels
Chapter 5 Global Luxury Hotels Market- Regional Analysis
5.1 Market Overview
5.1.1 Revenue, 2014-2021 (In USD Billion)
5.1.2 Market Share, 2014 Vs 2021 (%)
5.2 North America
5.2.2 Rest of North America
5.3.3 Rest of Europe
5.4 Asia Pacific
5.4.4 South Korea
5.4.5 Rest of Asia Pacific
5.5 Rest of the World (RoW)
5.5.1 Saudi Arabia
Chapter 6 Company Profiles
6.1 Starwood Hotels & Resorts
6.2 Four Seasons Holdings Inc.
6.3 InterContinental Hotels Group PLC
6.4 ITC Hotels Limited
6.5 Jumeirah International LLC
6.6 Kerzner International Resorts, Inc.
6.7 The Indian Hotels Company Limited
6.8 Mandarin Oriental International Limited
6.9 Shangri-La International Hotel Management Ltd.
6.10 Marriott International, Inc.
List of Tables
TABLE 1 Global Luxury Hotels Market Snapshot
TABLE 2 Global Luxury Hotels Year-on-Year Growth, 2015-2021 ( % )
TABLE 3 Drivers for luxury hotels market: Impact analysis
TABLE 4 Demand drivers for tourism industry
TABLE 5 International tourist arrivals
TABLE 6 International tourism receipts
TABLE 7 Restraints for luxury hotels market: Impact analysis
TABLE 8 Global Luxury Hotels Year-on-Year Growth, 2015-2021 ( % )
TABLE 9 North America Luxury Hotels Market Size and Forecast, by Type, 2014 - 2021 (USD Billion)
TABLE 10 Europe Luxury Hotels Market Size and Forecast, by Type, 2014 - 2021 (USD Billion)
TABLE 11 Asia Pacific luxury hotels market size and forecast, by type, 2014– 2021 (USD Billion)
TABLE 12 RoW luxury hotels market size and forecast, by type, 2014– 2021 (USD Billion)
List of Figures
FIG. 1 Global Luxury Hotels Market Segmentation, by Type and Geography
FIG. 2 Global Luxury Hotels Market Revenue, 2014 - 2021 (USD Billion)
FIG. 3 Various services of luxury hotels
FIG. 4 Classification of luxury hotels market
FIG. 5 World’s Top 10 Tourism Destinations, 2013
FIG. 6 Global Luxury Hotels Market Attractiveness by Type, 2014
FIG. 7 Luxury Hotels Market, Market Revenue and Forecast, 2014 – 2021 (In USD Billion)
FIG. 8 Global Luxury Hotels Market, By Type, Size, and Forecast, 2014 Vs 2021 (Value %)
FIG. 9 Business Hotels segment, market size and forecast, 2014-2021 (In USD Billion)
FIG. 10 Suite Hotels segment, market size and forecast, 2014-2021 (In USD Billion)
FIG. 11 Airport Hotels segment, market size and forecast, 2014-2021 (In USD Billion)
FIG. 12 Resorts segment, market size and forecast, 2014-2021 (In USD Billion)
FIG. 13 Others segment, market size and forecast, 2014-2021 (In USD Billion)
FIG. 14 Luxury Hotels Market, Market Revenue and Forecast, 2014 – 2021 (In USD Billion)
FIG. 15 Global Luxury Hotels Market, by Geography, Size, and Forecast, 2014 Vs 2021 (Value %)
FIG. 16 North America Luxury Hotels Market Revenue, 2014 – 2021 (USD Billion)
FIG. 17 U.S. Luxury Hotels Market Revenue, 2014 – 2021 (USD Billion)
FIG. 18 U.S. Luxury Hotels Brand Share, 2014
FIG. 19 Rest of North America Luxury Hotels Market Revenue, 2014 – 2021 (USD Billion)
FIG. 20 Europe Luxury Hotels Market Revenue, 2014 – 2021 (USD Billion)
FIG. 21 UK Luxury Hotels Market Revenue, 2014 – 2021 (USD Billion)
FIG. 22 U.K. Luxury Hotels Brand Share, 2014
FIG. 23 Germany Luxury Hotels Market Revenue, 2014 – 2021 (USD Billion)
FIG. 24 Germany Luxury Hotels Brand Share, 2014
FIG. 25 Rest of Europe Luxury Hotels Market Revenue, 2014 – 2021 (USD Billion)
FIG. 26 Asia Pacific luxury hotels market revenue, 2014– 2021 (USD Billion)
FIG. 27 China luxury hotels market revenue, 2014 – 2021 (USD Billion)
FIG. 28 China luxury hotels brand share, 2014
FIG. 29 India luxury hotels market revenue, 2014 – 2021 (USD Billion)
FIG. 30 India luxury hotels brand share, 2014
FIG. 31 Singapore luxury hotels market revenue, 2014 – 2021 (USD Billion)
FIG. 32 Singapore luxury hotels brand share, 2014
FIG. 33 South Korea luxury hotels market revenue, 2014 – 2021 (USD Billion)
FIG. 34 South Korea luxury hotels brand share, 2014
FIG. 35 Rest of Asia Pacific luxury hotels market revenue, 2014 – 2021 (USD Billion)
FIG. 36 RoW luxury hotels market revenue, 2014 – 2021 (USD Billion)
FIG. 37 Saudi Arabia luxury hotels market revenue, 2014 – 2021 (USD Billion)
FIG. 38 Saudi Arabia luxury hotels brand share, 2014
FIG. 39 Brazil luxury hotels market revenue, 2014 – 2021 (USD Billion)
FIG. 40 Brazil luxury hotels brand share, 2014
FIG. 41 Others luxury hotels market revenue, 2014 – 2021 (USD Billion)