Personalized Services to Upsurge Demand for Luxury Hotels, to Drive Global Hotels Market

Published Date : Jul 05, 2016

Ranging from luxury hotels, semi-luxury hotels, budget hotels to 5-star hotels, the global hotels market offers many options for the travelers. The hotels market is the backbone of the tourism industry and is directly affected by consumer spending capacity and their choices of stay. Changing lifestyles and preferences of travelers have made luxury hotels the largest segment of the global hotels market. With many new hotels offering a luxury stay at affordable rates, leading players are expected to face many challenges. 

Travelers have become bored with big brands and their routine set of services. Today, even in the hotels industry, customization has become a key factor. A personalized experience and a boutique kind stay are attracting many regular travelers. Luxury has become more about personalization and customized services and less about add-on services. Travelers feel connected to the place when they are offered simple yet personalized stay and services. To be precise, luxury hotels that offer business centers, conference rooms, swimming pools, social function services, and childcare have gained much appreciation. Though the global hotels market is filled with many 1-star, 2-star, 3-star, 4-star, and 5-star options, those offering personalized services are able to survive in the competitive environment. 

Challenges that could hamper the global hotels market’s growth

Even though the global hotels market is set for a rapid expansion, it has to manage a few challenges in the years to come. 

  • The global hotels market is expected to be mostly affected by unstable political environment. Political instability can badly impact the global travel and tourism industry, thus restricting the growth and development of new hotels.
  • In many tourist locations such as beaches and islands, people prefer opting for a homestay rather than luxury hotels to manage their budget. The rising popularity of budget hotels would hamper the growth of luxury hotels.
  • High prices of luxury accommodation can change the preferences of travelers, thus is expected to affect the global hotels market in the long run. 

Considering the budget factor, 3-star hotels are the most preferred choice for travelers, making it the largest segment by type. Many hotels are concentrating on adding customized services to travelers to offer them a comfortable stay.