February 19, 2025
Luxury Hotels Market

Growing Emphasis On Leisure And Adventure Travel Projected To Boost The Growth Of Luxury Hotels Market

Market Overview:
Luxury hotels are high-end hotels that offer premium amenities and superior customer service. They have elegant rooms and suites, fine dining options, spa and wellness centers, on-site entertainment and activities. Luxury hotels cater to ultra-affluent customers by providing luxurious accommodations and unmatched hospitality experiences. The growing tourism and demand for premium hospitality experiences are driving the growth of luxury hotels market.

The global Luxury Hotels Market is estimated to be valued at US$ 142.81 Bn in 2023 and is expected to exhibit a CAGR of 11% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

Adoption of sustainability practices: There is a growing trend of luxury hotels adopting eco-friendly practices to reduce their environmental impact. Many hotels have implemented renewable energy solutions, green building standards, local and organic food choices, and plastic-free initiatives. They are focusing on becoming carbon neutral which is attracting conscious consumers. Some hotels have also started community outreach programs to engage in social and environmental causes.

Porter’s Analysis

Threat of new entrants: The high costs involved in establishing luxury hotel properties serves as a barrier to entry for new competitors. Bargaining power of buyers: Individual luxury hotel customers have very low bargaining power relative to established luxury hotel brands due to the differentiated experiences offered. Bargaining power of suppliers: Hotel brands face moderate bargaining power from suppliers of luxury amenities, properties and other offerings as switching costs are relatively low. Threat of new substitutes: New innovations in the vacation rental space pose minimal threats, as luxury hotels offer differentiated brand experiences that complement the shared economy. Competitive rivalry: Strong competition exists between international luxury hotel brands to attract wealthy travelers and deliver exceptional customer experiences.

Key Takeaways

The Global Luxury Hotels Market Size is expected to witness high growth, exhibiting a CAGR of 11% over the forecast period, due to increasing demand from wealthy travelers to experience premium accommodations and unique destinations. regionally, the Asia Pacific luxury hotels market is projected to grow the fastest during the forecast period. Factors such as rising high net worth individuals and surge in travel and tourism will propel the regional market.

Key players operating in the luxury hotels market are Marriott International, Hilton Worldwide Holdings Inc., InterContinental Hotels Group PLC, and Four Seasons Hotels and Resorts. Marriott International is the largest hotel brand in the world and operates over 7,000 properties across 130 countries. Hilton Worldwide Holdings Inc. operates more than 6,500 hotels across 113 countries and 18 brands.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it

Ravina
+ posts

Ravina Pandya,  Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.

Ravina Pandya

Ravina Pandya,  Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.

View all posts by Ravina Pandya →