Who doesn’t want luxury? Everyone or anyone who could afford it. The overall luxury market is expanding. High demand for luxury things like travel, products and hotels has turned luxury into a large and a highly competitive field for consumer’s wealth. They are selling like hot buns. But what is luxury? Luxury is subjective in nature. What is luxury to me could be plain boring to you. Luxury like beauty is in the eye of the beholder. For some luxury can be privacy, for some it’s antiques, furniture’s and well decorated things.
Back with a Gusto
Luxury travel market demand is back in full gusto. This tough demand is mostly driven by global economic growth, is supporting rising global affluence and increasing numbers of High Net Worth Individuals (HNWI). This has therefore determined high leisure and corporate travel volumes. A luxury hotel provides incredible experiences that exceed the customer expectations and sketches a long time memory that they cherish. Today, more people can afford luxury travel and to could stay in luxurious surroundings.
Luxury hotel markets have flourished in the last few years and there is huge interest in this segment. The interest comes from consumers, investors, developers and owners. Today, staying at a luxury hotel has become more affordable for a lot of people, even if only for a once in a lifetime experience. The disposable incomes are allowing more people to buy and experience luxury products at a variety of levels. According to a market research report, the 2013 forecast estimates a 5.9% increase in revenue per available room (RevPAR), with a growth forecast for average daily to 4.4% .Hotel RevPAR rose 6.8% last year at a 61.4% occupancy rate. It is forecasted that as of 2014, demand will speed up slightly as RevPAR will rise 6.2% primarily to a 5.1% increase in average daily rate.
The changing lifestyle and the urge to show off to the peers are also adding to the rise of the luxury hotel market. Some of the Luxury hotel franchise in the world is the Ritz, Sheraton, Intercontinental, and JW Marriott amongst others. Luxury Hotels always have to be a step ahead than their peers. They have to constantly come up with innovative offers and services that would magnet travelers.
Luxury hotels are the most unpredictable of all segments of the hotel industry. They are the first to take a dive when times are bad, but are susceptible to very rapid recovery when times are good. Always expect the unexpected when leaving for a luxury holiday.