Luxury hotels are commercial establishments that provide tourists, visitors, and guests with high-end and luxurious accommodation experiences. They often consist of business, airport, and suite hotels and resorts. Spas, dine-in restaurants, swimming pools, salons, fitness facilities, and private beaches are among the amenities available at these hotels. They also offer quick, easy, and covert check-in and check-out, as well as smart planning and booking, business centers, laundry, dog walking, babysitting, and concierge services. These hotels typically include distinctive designer interiors created with cutting-edge technology. Luxury hotel rooms also contain high-quality aesthetic wall art, ceilings, floors, and windows, artisan toiletries, flat-screen televisions (TVs), and coffee makers to enhance the guest experience.
As per Transparency Market Research, the worldwide Luxury Hotels Market is anticipated to grow rapidly during the forecast period (2021 to 2031).
The tourism business has grown steadily throughout the years, with a rise in the number of domestic and foreign tours. According to the World Tourism Organization’s (UNWTO) publication, ‘International Tourism Highlights 2019 Edition,’ foreign tourist arrivals climbed from 680 in 2000 to around 1,401 in 2018. According to the same survey, among the many motivations for travel, the proportion of recreation, leisure, and vacation travel increased from 50% in 2000 to 56% in 2018.
Moreover, the rising availability of lodging packages with high-end amenities and deluxe rooms has drawn a large number of customers for longer stays, increasing income growth. The rising use of new technologies in providing various amenities, such as smart bathrooms or free Wi-Fi, in 5-star hotel rooms would further entice customers. As a result, a rising trend of luxury and leisure travel has increased the demand for opulent hospitality establishments. Such aspects are projected to drive the global luxury hotels market.
Growing Digitization of Services to Propel Market Growth
The growing digitization of services is expected to propel the global luxury hotels market during the forecast period. Luxury hotels accept direct bookings on their hotel brand websites. Hilton created a campaign appropriately named “Stop Clicking Around,” pointing to the well-known figure that global travelers visit an estimate of 38 websites before making a reservation. Apps are becoming increasingly crucial in how hoteliers maintain the services they offer their customers, and they can now manage many areas of the guest cycle and experience. In 2020, the movement toward digital and contactless services garnered attention. Customer-facing services are being redesigned as a result of the increased usage of technology-assisted choices such as contactless payments, mobile check-in, voice control, and biometrics. Consumers who have become acclimated to accessing their smartphones and laptops with fingerprint and facial identification will soon expect the same accessibility to their hotel rooms.
Asia Pacific to Dominate Luxury Hotels Market
Asia Pacific is expected to dominate the global luxury hotels market. The Asia Pacific luxury hotels market is being pushed by the region’s largest middle-class population, urbanization, rising consumer spending power, and other factors. The rising population in emerging economies of Asia Pacific, such as India and China, and the growing millennial population, are pushing the luxury hotels market growth. Moreover, the spike in the number of travelers in the Asia Pacific area is expected to benefit the luxury hotels market. With the rising level of living in Asia’s emerging economies, luxury hotel companies are actively expanding their footprint and activities in these regions. Many hotel chains are creating new offers and developing unique economy segments and services in order to attract travelers and solidify their regional position.
China is likely to contribute to the luxury hotels market during the forecast. Due to economic growth in the region, the need for luxury hotels to meet a variety of needs is expected to rise. Furthermore, Japan and China are expected to witness growth in the regional market due to the strong cultural and regional characteristics that determine consumer purchasing behavior in terms of luxury hotel selection. In addition, India is also projected to contribute significantly due to the region’s expanding disposable income.