Published on : Aug 18, 2016
With the travel and tourism industry growing at an extensive rate, the demand for luxury hotels is also at a hike. Luxury hotels play an effective role in the customer service sector. To meet the demand for comfortable and unique consumer services, companies venturing in the luxury hotels market are striving for service improvement considering the changing preferences of consumers. Moreover, the increase in luxurious living is also expected to fuel the market of luxury hotels.
Rising Number of International Events to Augment Growth of Global Luxury Hotels Industry
The onset of urbanization has steered a significant change in the lifestyle of consumers and on the modes of entertainment. As a result of this, the number of international conventions and activities has increased swiftly. Furthermore, the rise in international events has resulted in an increase in tourism activities across the world. Tourists with varied choices and needs are resorting towards luxury hotels. Thus, luxury hotel owners are aiming at the implementation of better services accompanied with trained staff to satisfy guest needs. As result of these high luxury demands, luxury resorts and hotels are focusing on service up gradation like complimentary massage and spa, and special dinning arrangements for guests. Moreover, effective promotion and branding activities are likely to aid the growth of the global luxury hotels market.
Unpredictable Natural Calamities to Impede Market Growth
As numerous luxury resorts and hotels are situated in a natural surrounding and outside urban areas, they are prone to risks from natural calamities. The demand for luxury and serene hotels has impelled owners of hotels to choose locations outside the busy city life. This makes such hotels and resorts extremely vulnerable towards damage from natural calamities. Furthermore, the luxury hotels situated in urban areas are also subjected to calamities due to congestion in city areas. The expenses incurred from losses after calamities are significantly high making it difficult for owners to re-establish them. However, reimbursement policies are expected to help curb this problem.
The global luxury hotels market is expected to increase at a CAGR of 4.0% from 2015 to 2021. In 2014, the global luxury hotels market was valued at US$148.6 bn and is anticipated to reach a valuation of US$195.2 bn in 2021.