Luxury Hotel Market to Reach $160.4 Bn, Globally, by 2031 at 5.1% CAGR ⋆

Luxury Hotel Market to Reach $160.4 Bn, Globally, by 2031 at 5.1% CAGR

According to the report, the global luxury hotel industry generated $95.1 billion in 2020, and is anticipated to generate $160.4 billion by 2031, witnessing a CAGR of 4.7% from 2022 to 2031. luxury hotel market

Prime determinants of growth

Growth in travel & tourism industry, growth in preference for leisure travel, and change in standard of living drive the growth of the global luxury hotel market. However, high price hinders the market growth. On the other hand, growing interest among people to experience new kind of adventure and entertainment presents new opportunities in the coming years.

Covid-19 Scenario

Owing to the implementation of global lockdown, the pandemic has had a negative impact on the growth of the global luxury hotel market, especially during the initial phase.
Travel restrictions and social distancing norms had restricted the growth of the Iuxury hotel market as well.

The business hotels segment to maintain its leadership status throughout the forecast period

Based on type, the business hotels segment held the highest market share in 2020, accounting for nearly one-third of the global luxury hotel market, and is estimated to maintain its leadership status throughout the forecast period. Moreover, the same segment is projected to manifest the highest CAGR of 5.8% from 2022 to 2031. This is because the major portion of the world luxury hotel market by type is covered by business hotels followed by airport hotels.

The chain segment to maintain its lead position during the forecast period

Based on category, the chain segment accounted for the largest share in 2020, contributing to more than half of the global Iuxury hotel market, and is projected to maintain its lead position during the forecast period. This is owing to its wide availability of rooms, strong market penetration, and effective services at reasonable cost in the Asia-Pacific. However, the independent segment is expected to portray the largest CAGR of 5.7% from 2022 to 2031.

North America to maintain its dominance by 2030

Based on region, North America held the highest market share in terms of revenue 2020, accounting for more than one-third of the global luxury hotel market. Moreover, the Asia-Pacific region is expected towitness the fastest CAGR of 6.0% during the forecast period, owing to rapid development programs in the region.