.The luxury hotel industry has been experiencing a resurgence in the post-COVID era, as an increasing number of travellers seek high-end travel and stay experiences. Industry experts predict the luxury hotel market will reach $115.8 billion by 2023, indicating a consistent growth trajectory. Leading hotel companies utilize cutting-edge technologies such as artificial intelligence, machine learning, IoT, near-field communication, mobile payment, and data analytics to enhance online reservations, improve return on advertising spend, better comprehend guest preferences, and cultivate stronger customer relationships. Over the forecast period, these technologies are expected to generate lucrative opportunities for the market.
India’s luxury hotel sector is flourishing. The inflow of international tourists and domestic tourist movement is anticipated to grow as international sports events, trade fairs, and exhibitions become more prevalent. The expansion of the travel and tourism sector, along with evolving living standards, have contributed to progressive growth in luxury hotel market trends. Factors such as rising purchasing power parity among domestic travellers, a developing airline industry, increased foreign tourist arrivals, and relaxed visa regulations are expected to drive the India Hotel Market over the forecast period. Additionally, the GST council’s rate reduction for luxury hotels from 28% to 18% is predicted to boost the Indian luxury hotel market during the forecast period. COVID-19 has negatively impacted the market, with the global pandemic affecting various industries in India.
Let us dive into what is driving this increase in the number of luxury properties in the hotel industry:
1. Rising Expenditures of Domestic Travellers
Indian travellers are spending more than ever before, and this trend is not limited to international travel. The domestic luxury and branded hotel industry are witnessing increased revenue from domestic leisure travellers. These guests are not only staying at high-end hotels for vacations but are also spending significant amounts within the hotel during their stay. Domestic leisure travel is the fastest-growing segment for Luxury Hotel chains.
2. Significant Growth in the Heritage Theme
The Heritage Theme is expected to hold the largest market share during the forecast period. These hotels boast historical infrastructure and strive to offer a glimpse of their region through local art and traditional cuisine. In contrast, contemporary luxury hotels provide high-end IoT infrastructure that promotes relaxation.
3. Increasing Demand for Exclusive Experiences
Today’s travellers seek unique and exclusive experiences rather than merely a place to sleep. Luxury hotels cater to this trend by offering immersive experiences tailored to each guest’s interests and preferences. From private excursions to exclusive access to local events, luxury hotels grant guests unparalleled experiences.
4. Rising Demand for High-End Amenities
Luxury hotels are meeting the growing demand for high-end amenities, from designer toiletries to state-of-the-art fitness facilities. High-end audio systems and smart home technology are also becoming increasingly prevalent in luxury hotels’ in-room offerings.
5. Personalized Service is Key
While personalized service has always been a hallmark of luxury hotels, today’s tourists expect even more. Luxury hotels are investing in technology to deliver personalized service that anticipates their guests’ needs and preferences. In-room tablets and customized concierge services are just some of the ways luxury hotels strive to create a seamless and personalized guest experience.
A study conducted by the Indian School of Business found that millennials, who are willing to spend more on travel experiences, are the primary drivers of luxury travel in India. The study also revealed that wellness and adventure are the two most popular categories of luxury travel experiences in the country.
In conclusion, the luxury hotel industry is witnessing steady growth in the post-COVID era, as travellers seek unique and exclusive experiences, high-end amenities, and personalized service. Luxury hotels are investing in creating experiences that cater to their guests’ discerning tastes, such as high-end amenities and personalized service that anticipate their guests
By Mr. Nirav Akshay Oza, CEO, Efcee Hotels
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