ALBANY, NY – According to “Luxury Hotels Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2015 – 2021” report, the global luxury hotels market was valued at $148.62 billion in 2014 and is anticipated to reach $195.27 billion by 2021, expanding at a CAGR of 4.0% from 2015 to 2021. North America dominated the global luxury hotels market in 2014 and is expected to maintain its leading position over the forecast period. The luxury hotels market in North America is expanding at a CAGR of 5.4% over the forecast period. The booming travel and tourism industry coupled with changing lifestyle is contributing in the growing popularity of luxury hotels globally.
Changing consumer preference for leisure and luxury is the major driver of the luxury hotels market. Growing number of travelers across different regions such as North America, Europe, Asia Pacific and Rest of the World (RoW) is contributing to the positive growth of the luxury hotels market. Increasing disposable income and growing expenditure on luxury lifestyle are also generating a positive impact on the luxury hotels market.
The luxury hotels market by type is segmented into: business hotels, suite hotels, airport hotels, resorts, and others. Business hotels held the largest market share in the luxury hotels market in 2014, expanding at a CAGR 3.8% over the forecast period. The business hotels cater to business travelers and are primarily located in business districts. The target customers for business hotels are business travelers and small conference groups. Airport hotels market is expanding at a CAGR 3.7% over the forecast period. Aggressive branding, promotional activities and expenses incurred on online advertisement are expected to create a high positive impact on the market for luxury hotels globally. Due to changing lifestyle and increasing disposable income, consumers are showing interest towards experiencing luxurious services during their holidays. These tourists with a wide range of taste and budget are keen on experiencing the luxury services provided by various luxury resorts and hotels.
Moreover, rising numbers of international events are proving beneficial for the luxury hotels. In addition, increasing standard of living and information about various services provided by these hotels is fueling the demand for luxury hotels globally.
Rising consumer brand consciousness along with changing lifestyle is boosting the demand for luxury hotels in North America, followed by Europe. The growing travel and tourism industry is one of the major reasons behind the increasing popularity of luxury hotels in Asia Pacific. Moreover, increasing number of international events coupled with improving standard of living is driving the demand for luxury hotels in Rest of the World (RoW).
U.S. dominated the market for luxury hotels across North America in 2014 and is expected to maintain its position over the forecast period. Booming tourism industry and rise in the number of tourists have been the prime factors responsible for the growth of the luxury hotels market in the U.S. Furthermore, Germany dominated the market for luxury hotels in 2014 across Europe. Changing consumer preference for leisure and luxury is the major driver of the luxury hotels market. Starwood Hotels & Resorts, Four Seasons Holdings Inc., InterContinental Hotels Group PLC, ITC Hotels Limited, The Indian Hotels Company Limited, Mandarin Oriental International Limited, Jumeirah International LLC, Shangri-La International Hotel Management Ltd., Kerzner International Resorts, Inc., and Marriott International, Inc. among others have strong global presence in luxury hotels market.