by The Luxury Hotel Market is estimated to be valued at US$ 128.54 Bn in 2023 and is expected to exhibit a CAGR of 11.1% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Luxury Hotel refer to 5-star Hotel that offer premium amenities and top-notch facilities and services for their guests. They offer spacious rooms and suites with lavish furnishings and modern amenities. Luxury Hotel aim to provide guests with a rich experience through luxury accommodations, fine dining, spa and wellness facilities, conference halls, and other premium services. They cater to high-end travelers seeking exclusive experiences while on leisure or business trips.
Market key trends:
One of the key trends gaining traction in the luxury Hotel market is the rising focus on sustainability. Consumers are increasingly looking for eco-friendly and sustainable travel options. To meet this demand, luxury Hotel are implementing various green initiatives such as using renewable energy sources, minimizing plastic and paper waste, sourcing locally-grown and organic foods, utilizing green cleaning products, and adopting green building practices. Some Hotel have also switched to electric vehicles for transportation. Through sustainability measures, luxury Hotel are able to reduce their environmental footprint, appeal to conscious travelers, and enhance their brand image. This focus on sustainability is expected to continue growing and shape the luxury hospitality sector in the coming years.
Porter’s Analysis
Threat of new entrants: The Global Luxury Hotel Market requires significant capital investments to build and operate Hotel. In addition, established brands have strong customer loyalty and relationships, creating barriers for new entrants.
Bargaining power of buyers: Individual buyers have low bargaining power in this market due to lack of purchasing volume. However, corporate buyers and group buyers have significant bargaining power due to their large purchase volumes.
Bargaining power of suppliers: The bargaining power of suppliers like construction companies, food suppliers and other vendors is moderate as there are many supplier options available.
Threat of new substitutes: No direct substitutes are available for luxury Hotel, however some customers may opt for vacation homes, serviced apartments or luxury resorts as an alternative.
Competitive rivalry: High due to presence of many international and national brands.
SWOT Analysis
Strengths: Strong brand recognition of major hotel chains, premium amenities and services, global presence and distribution network.
Weaknesses: High operating costs, vulnerability to economic downturns, high customer acquisition costs.
Opportunities: Growth of medical, wellness and business travel, urbanization and rising income levels in emerging markets.
Threats: Economic slowdowns, price wars among competitors, shifting customer preferences.
Key Takeaways
The global luxury Hotel market is expected to witness high growth, exhibiting CAGR of 11.1% over the forecast period, due to increasing leisure travel and rising affluence. The market was valued at US$ 128.54 billion in 2023.
Regional analysis: The Asia Pacific region is estimated to be the fastest growing market for luxury Hotel due to robust economic growth, rapid urbanization and rising incomes in various countries like China, India and Southeast Asian nations. North America currently dominates the market, supported by strong tourism and business travel in the US and Canada.
Key players: Key players operating in the luxury Hotel market are The Indian Hotel Company Limited, InterContinental Hotel Group plc, Rosewood Hotel & Resorts, Oberoi Hotel & Resorts, Naman Retreat, Jumeirah International LLC, Shangri-La International Hotel Management Ltd., Hyatt Hotel Corporation, Accor S.A, Hilton Hotel & Resorts, and Marriott International, Inc. Major hotel chains are focusing on strengthening their presence in emerging markets through strategic acquisitions and management contracts.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
