Tourism is travel for pleasure, enjoyment, fun relaxation etc. Demands of hotels continuously increase with an increase in a number of tourism. Growing travel and tourism industry is one of the key factors which directly responsible for the growth of luxury hotels industry market. In order to meet the increasing customer satisfaction, luxury hotels are constantly striving to improve their services by focusing on changing consumer preferences. Now a day, luxury hotels come under more innovative ideas and luxury facilities to satisfy the needs of customers.
Globally, demand for luxury hotels market has been accelerated by increasing numbers of business meetings and tourism. Furthermore, the rise in travel and tourism industry is one of the leading factors for the growth of luxury hotel market. Moreover, market globalization, industrialization, and urbanizations are directly responsible for fueling the growth of luxury hotel market. However, luxury hotels market suffered as a result of a strong economic slowdown of the late-2000s recession, between the second half of 2008 and the end of 2009. In addition, the outbreak of the H1N1 influenza virus in various countries is expected to slow down the growth of luxury hotels market. Furthermore, from past few years, many foreign tourists opt for medical treatment in medical emergencies like kidney transplant, liver transplant expected to create huge opportunities in luxury hotel market during forecasting periods.
Based on types, the global market for luxury hotels is segmented into five types: – business hotel, suites hotel, airport hotel, resorts and another hotel. In terms of revenue generation, business hotel is the leading segment in luxury hotel market, followed by airport hotel due to the continuous increasing number of industrialization and urbanization. Meanwhile, the airport hotels segment will rise at a steady CAGR of 3.7% during the forecast period. The global luxury hotels market will receive a huge impetus from ubiquitous promotional activities, strong branding strategies, and increasing investment in online advertising.
Geographically, North America was dominating the regional market for aviation analytics in 2015, due to a huge investment in infrastructure. In addition, North America holds maximum business center/headquarters of world premium industries across the world. Growing business in Asia Pacific serves as a fastest growing regional market for luxury hotels owing to the huge capital investment in construction of world class infrastructure. Shifting of the business hub from west to east especially in China and India is a meaningful cause for the growth in the Asia Pacific region within the forecast period. Moreover, Latin America and Middle East & Africa is expected to have splendid growth due to growth in tourism sector within the forecasting period.
According to the report, the global luxury hotels market was valued at approximately USD 153.82 billion in 2015 and is expected to reach approximately USD 194.63 billion by 2021, growing at a CAGR of around 3.5% between 2016 and 2021.
The key players operative in the global Luxury hotels market includes Starwood Hotels & Resorts, InterContinental Hotels Group PLC, The Indian Hotels Company Limited, Jumeirah International LLC, Kerzner International Resorts, Inc., Marriott International, Inc., Four Seasons Holdings Inc., ITC Hotels Limited, Mandarin Oriental International Limited and Shangri-La International Hotel Management Ltd.