The luxury hotel market is on the rise globally, and thanks to a recent report from Dublin-based Research and Markets, meeting planners can now organize events based on what types of luxury hotels are on the rise and why.
The report splits the global luxury hotel market up into five categories—Business Hotels, Airport Hotels, Suite Hotels, Resorts and Others. It also highlights that the global luxury hotel market was valued at $15.535 billion in 2015 and is projected to reach $20.442 billion by 2022—a growth of 4 percent between 2016 and 2022.
Business Hotels accounted for 42 percent of the 2015 total market revenue, and that segment is expected to continue to dominate the market throughout the next five years. That’s mainly imparted to its huge consumer base of business travelers, tour groups and small conference groups. Airport hotels accounted for 20 percent of the 2015 total market revenue.
While the rise in the travel and tourism industry, increase in preference for leisure travel and improved standard of living all contribute to the growth of the luxury hotel market, it’s the rise in number of business travelers and change in customer lifestyles that have really fueled the demand for luxury stays, according to Sheetanshu Upadhayay, research analyst at Allied Market Research.
North American and European regions account for about two-thirds of the total luxury hotel market size, which is mainly attributed to an increase in the number of tourist arrivals in both continents. North America, however, is projected to maintain its leading position through 2022. In the North American market, the U.S. occupied four-fifths of the total North American luxury hotel market in 2015, with Mexico expected to grow at the fastest rate of 6.6 percent between 2016 and 2022.