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The luxury hotel market size is forecast to increase by USD 71 billion at a CAGR of 5.48% between 2023 and 2028. The market is experiencing significant growth due to several key drivers. Firstly, the increasing disposable income among guests enables them to afford high-end accommodations. Secondly, the higher acceptance of online booking platforms provides convenience and ease for travelers, driving more bookings for luxury hotels. However, the high cost associated with luxury hotels remains a challenge, limiting the market's accessibility to a select few. Despite this, the market is expected to continue growing as travelers seek unique and memorable experiences, and luxury hotels strive to offer top-notch amenities and personalized services to differentiate themselves from competitors.
The market is experiencing significant growth due to emerging tourism trends, rising disposable income, and increasing standard of living in various regions. Corporate industries are driving demand for luxury hotels with the rise of corporate events, stays, and sports events. Leisure trips continue to be a major contributor to the market, with an increasing number of travelers seeking comfort and aesthetics during their vacations. Sports teams and spectators also contribute to the market, with many preferring to stay at luxury resorts for convenience and comfort. Bookings for these properties are on the rise, leading to the development of new infrastructure and the upgrading of existing ones.
Furthermore, luxury hotels are investing in the latest equipment and technology solutions from companies like Control4 Corporation, Crestron Electronics Inc, and AMX LLC, to provide automation solutions for lighting, security, entertainment, energy management, and connected devices. These solutions enhance the guest experience, provide greater control, and improve operational efficiency. In conclusion, the market is poised for growth, driven by emerging tourism trends, rising disposable income, and the increasing demand for comfort and convenience. The use of advanced technology solutions is becoming essential to meet the evolving needs of guests and stay competitive in the market.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The upscale segment is estimated to witness significant growth during the forecast period. In the emerging tourism landscape, luxury hotels have gained significant traction due to the rising disposable income and improving standard of living among consumers. Corporate industries have been major contributors to this trend, with an increasing number of corporate events and stays driving demand for high-end accommodations. Leisure trips and sports events are also significant factors, as spectators seek comfortable and luxurious properties to enjoy their experiences. Luxury resorts are investing heavily in infrastructure, incorporating the latest equipment and technology to enhance aesthetics, comfort, and control.
Moreover, these systems enable guests to control room temperature, blinds, lights, television, music system, and tablet/mobile applications with just a tap. Moreover, star hotels in major cities, such as the Star Hotel & Casino in Sydney, are adopting advanced technology to offer personalized experiences. For instance, the Star uses a Control4 system to manage lighting, temperature, and entertainment in each room, providing guests with a customized and convenient stay. These investments not only enhance the guest experience but also contribute to the overall growth of the market.
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The upscale segment was valued at USD 164.00 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 32% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market in Colorado is experiencing significant growth, driven by increasing travel and tourism spending both domestically and internationally. Government regulations and policies, including tax implications, significantly impact the luxury hotel sector. For example, the Albanian government's tourism law grants tax exemptions to luxury hotels, making them an attractive investment for modern businesses. The distinction between luxury hotel types, such as business hotels, airport hotels, holiday hotels, resorts & spas, and sustainability-focused properties, continues to evolve. Upscale business hotels cater to corporate travelers, while golf resorts and holiday resorts offer themed experiences for leisure travelers. Eco-consciousness and sustainability are also emerging trends in the luxury hotel sector.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing disposable income among guests is the key driver of the market. The market is experiencing significant growth in developed economies, including Canada, the US, Germany, and France. This sector plays a crucial role in boosting the economy by catering to the increasing disposable income and rising standard of living of the population. The emergence of emerging tourism and the growing preference for luxury experiences among the millennial population are key drivers of this market. Corporate industries are also contributing to the growth of the market through corporate events and stays.
Furthermore, aesthetics, comfort, and advanced automation solutions from companies like Control4 Corporation, Crestron Electronics, Inc, and AMX LLC, including lighting, security, entertainment, energy, and connected devices, add to the luxury experience. Luxury resorts are increasingly popular for sports events, attracting spectators and sports teams. Infrastructure development and the availability of the latest equipment enhance the appeal of these properties.
The higher acceptance of online booking platforms is the upcoming trend in the market. In the context of emerging tourism and rising disposable income, luxury hotels have become increasingly popular among both corporate industries and individuals seeking leisure trips. With the standard of living and purchasing power on the rise, the demand for luxury resorts and properties equipped with the latest infrastructure and amenities has increased. Corporate events and stays, as well as sports events, attract a significant number of guests, including sports teams and spectators. Luxury hotels offer automation solutions from companies providing guests with advanced control over lighting, security, entertainment, energy consumption, and connected devices.
Furthermore, these features not only enhance the guest experience but also offer convenience and control. Booking portals, such as booking.Com, cater to this growing market by providing customized deals for high-earning individuals, enabling them to sign up for VIP programs and secure early access to new properties. These portals offer various booking options based on the purpose of the visit, ensuring a seamless and personalized experience for the guests.
The high cost associated with luxury hotels is key challenge affecting the market growth. In the emerging tourism landscape, luxury hotels have gained significant traction among both corporate industries and high-net-worth individuals. The rising disposable income and improving standard of living have expanded the purchasing power of consumers, enabling them to indulge in luxurious experiences. This trend is particularly prominent in the context of corporate events, sports events, and leisure trips, where the demand for luxury resorts and hotels is on the rise. Luxury hotels offer unparalleled comfort and control, with the latest infrastructure, properties equipped with state-of-the-art amenities, and automation solutions from companies like Control4 Corporation, Crestron Electronics, Inc, and AMX LLC.
Furthermore, these systems enable guests to manage lighting, security, entertainment, energy consumption, and connected devices through tablet/mobile applications and light sensors. Moreover, luxury hotels are increasingly popular among sports teams and their spectators, with many hosting corporate stays and team training facilities. The Star Hotel & Casino in Sydney, for instance, boasts a Control4 system that allows guests to control their television, music system, room temperature, blinds, and lights with ease. As the economy continues to recover and the demand for luxury experiences persists, bookings for these properties are expected to remain strong, despite the high investment and localization costs.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Accor S.A.: The company offers luxury hotels under its brands Banyan Tree, EMBLEMS, Fairmont.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is experiencing significant growth due to emerging tourism trends, rising disposable income, and increasing standard of living in various regions. Corporate industries are a major contributor to this market, with an increasing number of corporate events, stays, and sports teams requiring high-end accommodations. Leisure trips and sports events also drive demand for luxury resorts, attracting spectators from around the world. Infrastructure development and the addition of the latest equipment and amenities, such as automation solutions enhance the appeal of luxury properties.
Furthermore, these solutions offer advanced lighting, security, entertainment, energy management, and connectivity features, ensuring guest comfort and control. Notable luxury hotels integrate these technologies into their offerings, providing guests with customized experiences through tablet/mobile applications, light sensors, and gateway canyon resorts. This focus on aesthetics, comfort, and technology sets luxury hotels apart from their competitors and caters to the evolving needs and expectations of discerning travelers.
Market Scope |
|
Report Coverage |
Details |
Page number |
156 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.48% |
Market growth 2024-2028 |
USD 71 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.08 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 32% |
Key countries |
US, UK, China, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accor S.A., Aman Group S.a.r.l., Best Western International Inc., Choice Hotels International Inc., Four Seasons Hotels Ltd., Hyatt Hotels Corp., InterContinental Hotels Group Plc, ITC Ltd., Jumeirah International LLC, Kempinski Hotels SA, Kerzner International Ltd., LVMH Group., Marriott International Inc., Rosewood Hotel Group, Shangri La Asia Ltd., Soneva Mauritius Ltd., The Indian Hotel Co. Ltd., and Wyndham Destinations Inc. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Ownership
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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