The global luxury hotel market size is projected to reach USD 238.49 billion by 2028, exhibiting a CAGR of 10.4% during the forecast period. Fortune Business Insights™ diagnoses this market in its report, titled “Luxury Hotel Market, 2021-2028”, which also states that the market value stood at USD 93.43 billion in 2020.
COVID-19 to Create Widespread Instability in the Hospitality Industry
One main reason for this unprecedented downturn in the hospitality industry is the steep drop in tourist activities worldwide. As per the estimations released by the UN World Tourism Organization (UNWTO), export revenues from tourist arrivals fell by approximately USD 910 billion to 1.2 trillion in 2020, potentially shrinking the global GDP by 1.5% to 2.8%. Hotels, in particular, have been the hardest hit. For example, according to the American Hotel & Lodging Association (AHLA), 71% of hotels will not survive the next six months without federal assistance and 77% will have to lay-off workers. Luxury hotel chains, such as Le Meridien, have also resorted to cost-cutting, given the new travel bans and the possibility of movement restrictions.
Fortune Business Insights™ lists out all the luxury hotel market companies that are presently striving to reduce the impact of Covid-19 pandemic on the market:
- Mandarin Oriental Hotel Group (Quarry Bay, Hong Kong)
- Accor SA (Issy-les-Moulineaux, France)
- Shangri-La Asia Limited (Quarry Bay, Hong Kong)
- Four Seasons Hotel Limited (Toronto, Canada)
- Hyatt Hotels Corporation (Chicago, U.S.)
- The Indian Hotels Company Limited (Mumbai, India)
- Kempinski Hotels S.A. (Geneva, Switzerland)
- Hilton Hotels & Resorts (McLean, U.S.)
- InterContinental Hotels Group plc (Denham, U.K.)
- Marriott International, Inc. (Maryland, U.S.)
Emergence of Eco-friendly Luxury Hotels to Accelerate the Market
Moreover, The development of hotels guided by the principles of environmental sustainability has altered perceptions surrounding luxury accommodations. The increasing environmental consciousness among new-age travelers has redefined the dynamics hitherto governing the hospitality industry, leading to the construction of eco-friendly luxury hotel brands. The growing popularity of such premium properties in exotic locations is set to accelerate the expansion of this market.
Highlights of the Report
Thirdly, This report offers a detailed analysis of the various market drivers and trends, along with a careful study of the various market restraints. Moreover, the report contains a comprehensive examination of the regional dynamics of the market, as well as an in-depth evaluation of the competitive landscape of the market. In addition to these factors, the report supplies an exhaustive assessment of all market segments.
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Firstly, On the basis of geography, this market has been segregated into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.
High Spending Capacity of Travelers to Fuel the Market in North America
Furthermore, expenditures on hotels and resorts of both domestic and international travelers rose by 4.1% in 2019 from 2018 levels, as per the report, indicating a strong willingness to spend on vacations by consumers. The North America market size stood at USD 30.66 billion in 2020.
The UNWTO, for instance, observed that Europe accounted for nearly half of all tourist arrivals globally in 2018.
Key Players to Tap Opportunities in Developing Markets
- January 2021: Marriott International announced its plans of opening 100 new properties across Asia Pacific in 2021. The aim is to bring brands and exquisite experiences to travelers and guests in unexplored destinations in the region.
- March 2020: Luxe Collection opened its first branded property in New York City, the Luxe Life Hotel New York.
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