The rapid entry of new players in the global luxury hotels market is likely to intensify competition in the said market, says Transparency Market Research in a new publication. Some key players in the global luxury hotels market are Marriott International Inc., ITC Hotels, The Indian Hotels Company Limited, InterContinental Hotels Group PLC, Jumeirah International LLC, Shangri-La International Hotel Management Ltd, Kerzner International Resorts Inc., Mandarin Oriental International Limited, Four Seasons Holdings Inc., and Starwood Hotels and Resorts Worldwide.
According to the findings of the TMR report, the global luxury hotels market is likely to expand at a CAGR of 4.0% between 2015 and 2021. Expanding at this pace, the market is likely to be worth US$195.2 bn by the end of 2021.
Among the key segments based on type, business hotels held the dominant share of the market in 2014; the growth of this segment rides on the rising business travel globally of associates of multinational companies. Geography-wise, North America holds the leading share in the luxury hotels market.
Advanced Communication Networks for Top-of-the-line Services spurs Growth
The booming travel and tourism industry worldwide is a key factor driving the luxury hotels market. Rising disposable incomes, and surging international travel for both business and leisure are bolstering the demand for luxury hotels. Consumers are increasingly willing to spend exorbitant money for a luxurious stay experience.
Besides this, intensive efforts by luxury hotel chains to deliver top-in-the line service and uber luxury to deliver transformative customer experience has created demand for luxury hotels. The luxury hotel chains are equipped with advanced technology, which helps offer uber comfort and convenience to guests.
Huge marketing budgets of luxury chains is serving to create demand for luxury hotels. Luxury hotel chains are increasingly adopting innovative brand promotion strategies that have been successful with digitally-savvy consumers. In addition, aggressive re-branding of luxury hotel chains is opening new growth prospects for the luxury hotels market.
Complimentary Services to lure Customers carry Marketing Objective
The global luxury hotels market is also benefitting from the rising focus of luxury hotel chains to offer complimentary services and amenities. Both business and leisure travelers are attracted to complimentary services that are provided at basic charges. Families traveling for vacation look for in-house entertainment and complimentary services for engagement. Movie room, snooker room, children’s library, and entertainment lounge are some of the complementary services offered by luxury hotels.
The rise in number of international spectacles is serving to spur the growth of luxury hotels market. Luxury hotels often reserve rooms, suites for guests attending such events. Not only this, they offer personalized and tailored customer services that creates an impression in the minds of guests. Such practices have underlying marketing intent that serves to open new growth avenues.