Pune, India, April 18, 2022 (GLOBE NEWSWIRE) — The size of the global luxury hotel market is expected to reach $238.49 billion by 2028, posting a CAGR of 10.4% during the forecast period. Fortune Business Insight™ diagnoses this market in its report, entitled “Luxury Hospitality Market, 2021-2028”, which also indicates that the market value amounted to $93.43 billion in 2020.
COVID-19 will create widespread instability in the hospitality industry
Luxury Hospitality Market Growth Expected to Contract Due to COVID-19 Pandemic, with Market Seeing Stunning Drop in 60.82% in 2020 and reaching a value of $119.55 billion in 2021. One of the main reasons for this unprecedented slowdown in the hospitality industry is the sharp decline in tourism activities around the world. According to estimates published by the United Nations World Tourism Organization (UNWTO), export earnings from tourist arrivals have fallen from around USD 910 billion to USD 1.2 trillion in 2020, which could reduce global GDP from 1.5% to 2.8%. Hotels, in particular, have been 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 Méridien, have also resorted to cutting costs, given new travel bans and the possibility of movement restrictions. In sum, markets associated with the travel, tourism and hospitality industry are set to enter a period of deep financial stress due to the coronavirus.
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Fortune Business Insights™ lists all companies in the luxury hospitality market currently working to reduce the impact of the 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 Limited Hotel (Toronto, Canada)
- Hyatt Hotels Corporation (Chicago, USA)
- The Indian Hotels Company Limited (Mumbai, India)
- Kempinski Hotels SA (Geneva, Switzerland)
- Hilton Hotels & Resorts (McLean, USA)
- InterContinental Hotels Group plc (Denham, UK)
- Marriott International, Inc. (Maryland, USA)
Emergence of eco-friendly luxury hotels to accelerate the market
The development of hotels guided by the principles of environmental sustainability has changed perceptions surrounding luxury accommodations. The growing environmental awareness of new-age travelers has redefined the dynamics that had governed the hospitality industry until then, leading to the building of eco-friendly luxury hotel brands. For example, the Andaz Maui at the Wailea Resort in Hawaii was designed to minimize waste and emissions. The complex has a solar water heating system and variable speed chillers, while in the chamber settings glassware is made from recycled materials with automated temperature controls. Similarly, at Saffire Freycinet in Tasmania, Australia, Modwood is used as a wood substitute, LED technology is widely used to make the whole facility energy efficient and natural cycle air circulation systems have also been used. been installed. The growing popularity of these high-end properties in exotic locations is expected to accelerate the expansion of this market.
This report offers a detailed analysis of the various market drivers and trends, as well as an in-depth study of the various market restraints. Additionally, the report contains a comprehensive examination of regional market dynamics, along with an in-depth assessment of the market’s competitive landscape. In addition to these factors, the report provides a comprehensive assessment of all market segments.
Based on room type, the market has been divided into luxury, premium, and high-end. By category, the market has been segmented into chain and independent. Based on geography, this market has been segregated into North America, Europe, Asia-Pacific, South America, Middle East and Africa.
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High spending capacity of travelers to fuel the market in North America
Supported by high consumer spending potential, North America is expected to dominate the luxury hotel market share during the forecast period. A report by the US Travel Association showed that in 2019, domestic travelers spent $972 billion, about 25% of that on accommodation. Additionally, spending on hotels and resorts by domestic and international travelers rose 4.1% in 2019 from 2018 levels, the report said, indicating strong consumer willingness to spend on vacations. The size of the North American market was $30.66 billion in 2020.
In Europe, the market will experience a period of sustained growth as the continent is home to some of the most attractive tourist spots on the planet. The UNWTO, for example, observed that Europe accounted for nearly half of all tourist arrivals globally in 2018. average are pushing international luxury hotel chains to establish themselves. their presence in countries like India, China and Indonesia.
Key players to exploit opportunities in developing markets
With the transformation of living standards in emerging markets in Asia and Africa, luxury hotel brands are actively expanding their presence and operations in these countries. Several hotel chains are offering new offers and creating economic segments and unique services to attract travelers and establish their regional position.
Detailed Table of Contents:
- Search scope
- Market segmentation
- Research Methodology
- Definitions and assumptions
- Market dynamics
- Market factors
- Market constraints
- Market opportunities
- key ideas
- Overview of parent/related markets
- Industry SWOT Analysis
- Emerging trends
- Recent Industry Developments – Policies, Partnerships, New Product Launches and Mergers & Acquisitions
- Impact of COVID-19
- Global Luxury Hotel Market Analysis, Outlook and Forecast, 2017-2028
- Main results/summary
- Market Category Estimates and Forecasts
- By room type (value)
- Top of the line
- Top of the line
- By category (value)
- By region (value)
- North America
- Asia Pacific
- South America
- Middle East and Africa
- By room type (value)
- January 2021: Marriott International announced plans to open 100 new properties across Asia Pacific in 2021. The goal is to deliver exquisite brands and experiences to travelers and guests in uncharted destinations across the region.
- March 2020: Luxe Collection has opened its first branded property in New York, the Luxe Life Hotel New York. In addition, there will be new 4 and 5 star hotels – Zeavola Resort (Thailand), Il Tornabuoni (Florence), Eurostars Magnificent Mile (Chicago), CoolRooms Atocha (Spain) and The Belmont (Dallas).
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