Luxury Hotel Industry Sees Robust Growth Amidst Increased Tourism

Luxurious hotels offer luxurious accommodations and various services, including swimming pools (warm and freshwater), barbeque and spas, as well as bars and gyms. Many luxury hotels offer private gardens and private beach areas, as well as sunbeds. This allows them to stand out from the rest. Modern luxury hotel trends have been influenced by the rise of the tourism and travel industry, the preference for leisure travel, including luxury solo holidays, as well as changes in living standards.

Travel for recreation, holidays, and other leisure activities is on the rise as a result of an increasing number of travelers. Nearly half of international tourists arrive for leisure purposes. The standard of living is the main factor that determines leisure travel. The rise in the standard of living encourages more people to spend their leisure time, which will increase the number of luxury hotels.

According to Market.us, the “Global luxury hotel market valued at $95,113.00 Mn in 2020. It is expected to grow at 5.1% annually between 2022 and 2031.”

Luxury hotels have always emphasized the importance of location as a success factor. If a hotel is located in a prominent area, it will perform better than one located in a smaller area. People who travel frequently will prefer to stay in an airport hotel, while those who want to take in the beautiful views should choose a hotel close to their destination. The luxury hotel market is therefore dependent on the location.

Tourism is an important economic activity for any country. As the world’s GDP has increased, there has been a rise in tourism and travel. The largest shift was observed in Europe, followed by Asia-Pacific and the Americas. The tourism and travel industry will experience solid growth. The countries are also expected to benefit from the growth over the forecast period.

To strengthen their market position, major players like Four Seasons Holdings Inc. and Intercontinental Hotels Group, Marriott International Inc. and Hyatt Corporation., ITC Hotels Limited., Shangri-La International Hotel Management Ltd., and Jumeirah International LLC, develop product portfolios.

Due to the rapid spread of coronavirus, strict lockdown rules were implemented in most countries at the beginning of 2020. Hotels, restaurants, and spas were closed due to physical distancing and stay-at-home orders. Many conferences, events, social gatherings, and planned trips had to be canceled or postponed to prevent virus transmission.

These factors had a negative impact on the hospitality industry. According to the American Hotel & Lodging Association’s report ‘STATE of the HOTEL INDUSTRY 2021’, average hotel occupancy in the United States decreased from 66% to 44% in 2019 to 44% in 2020.

According to Gaurav Yadav, senior research analyst at market.us said, “Over the years, the tourism industry has seen steady growth with increased numbers of international and domestic tours. According to the UNWTO’s report, “International Tourism Highlights 2019 Edition”, international tourist arrivals increased by 680 from 2000 to 1,401 in 2018.”

According to the same report, travelers travel for various reasons, including vacation, recreation, or leisure. This percentage has increased from 50% in 2000, to 56% in 2018.

In addition, there are more lodging options with luxurious rooms and top-quality services, which has resulted in increased revenue generation. Guests will be attracted to 5-star hotels that offer advanced technology such as smart bathrooms and Wi-Fi. The demand for luxurious hospitality has increased due to the growing trend toward luxury and leisure travel.