Luxury Hotel Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Luxury Hotel Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

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.Luxury Hotel Market TrendsIncreasing 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.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.Luxury Hotel Market Competitive Analysis 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.Additional Benefits: The market estimate (ME) sheet in Excel format 3 months of analyst support Please note: The report will take approximately 2 business days to prepare and deliver.