Published on : Feb 11, 2016
The growing number of travelers across North America has contributed to the immense growth of the luxury hotels market. The opulence of different regions in North America and the increasing income has increased the expenditure on a luxurious lifestyle, thereby benefitting the luxury hotels market.
Transparency Market Research in its report on the luxury hotels market, has forecasted that the global luxury hotels market which was valued to be USD 148.62 bn in 2014 is expected to reach USD 195.27 billion by 2021, expanding at a 4.0% CAGR from 2015 to 2021.
Changing Lifestyle Preference Boosts Luxury Hotels Market in North America
As more and more people want to experience different cultures, get exposed to different norms, learn newer things and most importantly have fun, the luxury hotels market is witnessing an increasing demand. The changing lifestyle of people, with a mindset of exploring newer places and going for a vacation frequently, is one of the reasons that has increased the demand for luxury hotels. Moreover, luxurious standard of living has popularized the luxury hotels market. Another factor that needs mentioning, is the aggressive branding, promotions and quick access to the booking and cancellation of hotels. A constant upgradation of the services to retain customers, has also helped the hotels market.
Business Hotels Lead Luxury Hotels Market:
The luxury hotels market is segmented into suite hotels, business hotels, airport hotels, resorts, and others. Among these, business hotels holds the largest market and will be seen expanding at a CAGR of 3.8% over the period of 2015 to 2021. Airport hotels is rising at a CAGR of 3.7% over the forecast period of 2015 to 2021.
US to Dominate Market for Luxury Hotels in Coming Years:
Across North America, US has dominated the luxury hotels market in 2014 and is expected to retain its position for the upcoming period from 2015 to 2021. Growth in the tourism industry and rise in the number of the tourists are prime factors contributing to the success of the luxury hotels market in the US.