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.
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