Global Luxury Hotel Market driving by Rising Personal Disposable Incomes

The global 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 high-end Hotel that provide quality accommodation, catering, and other services to their customers. These Hotel emphasize on personalized customer service and privacy. They strategically position themselves by designing lavish guest rooms, suites and recreational areas like swimming pools, spas, fitness centers and restaurants serving gourmet meals. Luxury Hotel aim to offer luxurious experience through high-quality amenities and services to attract high-income customers. They provide bespoke services for leisure as well as business travelers looking for a premium stay experience.

Market key trends:
Rising personal disposable incomes is one of the major trends driving the growth of global luxury Hotel market. Consumers across the world are witnessing rise in their disposable incomes attributed to strong economic growth. This has increased their spending power and willingness to spend on premium accommodation and recreational services. According to the World Data Lab, global middle class population is projected to grow from 3 billion in 2017 to over 5 billion by 2030. Growth in affluent consumer base is encouraging the development of luxury Hotel with world-class recreational facilities, resulting in robust demand for luxurious staycations. Furthermore, rapid expansion of MICE (Meetings, Incentives, Conferences and Exhibitions) tourism is fueling the market growth. Luxury Hotel are strategically designing elegantly designed meeting spaces and banquet halls to tap opportunities in the meetings industry.
Porter’s Analysis

Threat of new entrants: The Global Luxury Hotel Market industry requires large capital investments for property acquisition and development. Brand loyalty and economies of scale enjoyed by existing industry players also make entry difficult for new entrants.

Bargaining power of buyers: Buyers have moderate bargaining power as there are many established luxury hotel brands to choose from. However, unique hotel experiences and strategic locations give certain Hotel pricing power over buyers.

Bargaining power of suppliers: Suppliers of luxury amenities, food, and decor have low bargaining power due to the fragmented nature of the supplier industry. Hotel can leverage relationships with multiple local and regional suppliers.

Threat of new substitutes: The threat of new substitutes is low as luxury Hotel offer a unique experience that can’t be easily substituted. While luxury villas and homes are alternatives, they do not provide the range of amenities and services associated with a luxury hotel stay.

Competitive rivalry: The luxury Hotel industry has high competition among established brands and independent Hotel to attract wealthy clientele and global travelers seeking luxury experiences.

Key Takeaways

The global luxury Hotel market size is expected to witness high growth, exhibiting a CAGR of 11.1% over the forecast period of 2023-2030, due to increasing travel and tourism activities globally.

The Asia Pacific region is projected to be the fastest growing as well as the most lucrative market for luxury Hotel during the forecast period. Countries like China, Japan, Thailand, and India are witnessing rising incomes and interest in unique luxury experiences, benefitting leading hotel chains.

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. These players are focusing on expanding through acquisitions and partnerships with prominent destination clubs and resorts.

 

Read More: https://www.trendingwebwire.com/luxury-hotels-market-trends-and-size/

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