Luxury Hotels Market Growth, Size, Share, Trends, and Forecast 2028

Luxury Hotels Market Size

The luxury hotels market size was estimated at USD 11.24 billion in 2020 and is expected to reach more than USD 14.40 billion by 2028, growing at a CAGR of 3.5% from 2021 to 2028.

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Luxury hotels are those who different features and advanced facilities to their end-user customers. These hotels are for providing high quality personalized and professional services by becoming a primary source of income produced by hospitality industry worldwide. Hospitality is a very dynamic industry that focuses on different innovations in marketing activities to adhere to a new client base. Also, hotels are now coming up with several membership cards, schemes, and offers to keep their old customers and attract the new customer segment.

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COVID-19 Impact Analysis

The luxury hotel market has faced huge losses, due to a very sudden fall in tourism. Tourism sector has negative impact of the pandemic on its working much earlier. The travel measures started as early as January 2020 worldwide. International as well as domestic tourists limited their travel because of fear of contracting COVID-19. One of the most important factors for the downturn in the hospitality industry is the drop in tourist activities all over the world.

Luxury Hotels Market: Growth Factors

In the current scenario, factors such as a shift of consumer preference towards luxurious experience and comfort and a rise in income with improving standards of living are driving the luxury hotel industry demand all over the globe. Considering a rise in the number of national and international events conducted is also triggering the demand for such hotels. Among all types of guests, the category of politicians, business tycoons, celebrities, and professionals is the most prominent visitor.

The increasing income of the population in developing countries such as China, India, Brazil, Thailand, and South Africa is about to accelerate the global tourism industry and have a favorable impact on the overall market. Countries facing economic crises, political issues and regulations are anticipated to have declining or very slow market growth.

Tourism is travel for pleasure, enjoyment, fun relaxation etc. Demands of hotels continuously increase with increase in number of tourism. Growing travel and tourism industry is one of the key factors which directly responsible for the growth of luxury hotels industry market. In order to meet the increasing customer satisfaction, luxury hotels are constantly striving to improve their services by focusing on changing consumer preferences. Now a day, luxury hotels come under more innovative ideas and luxury facilities to satisfy the needs of customers.

Globally, demand for luxury hotels market has been accelerated by increasing numbers of business meetings and tourism. Furthermore, rise in travel and tourism industry is one of the leading factors for the growth of luxury hotel market. Moreover, market globalization, industrialization and urbanizations are directly responsible for fueling the growth of luxury hotel market. However, luxury hotels market suffered as a result of a strong economic slowdown of the late-2000s recession, between the second half of 2008 and the end of 2009.

In addition, the outbreak of the H1N1 influenza virus in various countries is expected to slow down the growth of luxury hotels market. Furthermore, from past few years, many foreign tourists opt for medical treatment in medical emergencies like kidney transplant, liver transplant expected to create huge opportunities in luxury hotel market during forecasting periods.

Luxury Hotels Market : Report Scope

Luxury Hotels Market : Segment Analysis Preview

Based on types, the global market for luxury hotels is segmented into five types: - business hotel, suites hotel, airport hotel, resorts and other hotel. In terms of revenue generation, business hotel is the leading segment in luxury hotel market, followed by airport hotel due continuous increasing number of industrialization and urbanization. Meanwhile, the airport hotels segment will rise at a steady CAGR of 3.7% during the forecast period. The global luxury hotels market will receive a huge impetus from ubiquitous promotional activities, strong branding strategies, and increasing investment in online advertising.

Business travelers or professionals who travel outside for work including business people and managers generally have a tendency to incline towards such types of hotels and rooms. Currently, the airport hotels segment is becoming an indispensible part of the luxury hotel industry all over the world. The main clients of air hotels can be airline tourists, mainly those people whose flights are cancelled or delayed. Airplane domain staff is also targeted customers among others.

Luxury Hotels Market Regional Analysis Preview

Geographically, North America was dominating regional market for aviation analytics in 2015, due to huge investment in infrastructure. In addition, North America holds maximum business centre/headquarters of world premium industries across world. Growing business in Asia Pacific serves as a fastest growing regional market for luxury hotels owing to the huge capital investment in construction of world class infrastructure. Shifting of business hub from west to east especially in China and India is a mean cause for the growth in the Asia Pacific region within the forecast period. Moreover, Latin America and Middle East & Africa is expected to have splendid growth due to growth in tourism sector within the forecasting period.

North America accounted for a share of around 35% in 2020 The North American region is having their dominance and the trend is expected to be continued over the forecast period. The U.S. can be said as a global financial hub and one of the most popular tourist place for people across the world.

The European market is also growing because of government initiatives taken for the of tourist and tourism promotion in their country with this the increasing awareness of local regions and about its historical or architectural importance. For example, the royal history of Europe region such as Spain, Italy, the U.K., and France, is the main factor driving the Europe market.

Key Market Players & Competitive Landscape

With the living standard transformation in the emerging markets of Asia and Africa, such luxury hotel brands are focusing on amplifying their operations and presence in these countries. Various hotel chains are coming up with new facilities and creating unique identical economy segments and services to attract travelers.

The major players in industry of Luxury Hotels Market are

• InterContinental Hotels Group PLC
• Jumeirah International LLC
• Starwood Hotels & Resorts
• Kerzner International Resorts
• Four Seasons Holdings Inc
• Shangri-La International Hotel Management Ltd
• ITC Hotels
• Marriott International
• Mandarin Oriental International Limited
• The Indian Hotels Company Limited

The luxury hotels market is segmented as follows:

By Type

• Business Hotels
• Suite Hotels
• Airport Hotels
• Resorts

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa