The luxury hotel market has witnessed major – even massive – activity in the past decade and more, and that activity continues unabated today. Time, then for some analysis of what exactly is going on in this sector, and why.
The results of the first ever World Luxury Index™ Hotels were unveiled at Luxury Hospitality 2013, the world’s first luxury think tank for hospitality leaders, an event organized by International Herald Tribune (IHT) and Ecole Hôtelière de Lausanne (EHL).
As part of their World Luxury Index™ series, Digital Luxury Group produced, with the Chair of Luxury Hospitality of Ecole Hôtelière de Lausanne and with Luxury Society, the World Luxury Index™ Hotels featuring an in-depth analysis of leading luxury hotel brands.
Key findings:
- Global interest for luxury hotels remains stable at +1.5%
- US dominates the luxury hotel industry: 75% of analyzed hotels are American
- Russians (+12.8%), British (+8.5%) and Chinese (+3.3%) are the fastest growing luxury hospitality consumers; but US consumers represent the largest consumer base for luxury hotel brands globally (66.3%)
- Hilton, Ritz Carlton and Four Seasons lead their respective categories
- New York remains top destination for luxury hospitality destinations worldwide – London, Dubai and Paris are fastest growing international destinations
This report is part of the World Luxury Index™, an international ranking and analysis of the most sought-after brands within the luxury industry. This study covers 70 luxury hotel brands within 10 key luxury markets and provides insights on the interest coming from luxury consumers. The unbiased information is derived from 133 million consumer online searches.
Major findings
- Global interest for luxury hotels remains stable at +1.5%
US consumers express the largest interest for luxury hotel brands globally (66.3% of the total), but strong demand growth was fuelled by Russians (+12.8%), British (+8.5%) and Chinese (+3.3%) who become the fastest growing luxury hospitality consumers. Signs of demand decline were recorded in Italy (-14.3%), Brazil (-12.1%) and Japan (-11.1%).
Samad Laaroussi, Holder of the Chair of Luxury Hospitality of Ecole hôtelière de Lausanne comments, “The luxury hotel market is very heterogeneous from one market to the other. We have defined for this study 3 main categories: luxury brands integrated to hotel groups and hotel groups that are playing mainly or only in the luxury market segment.
“In the three categories, emerging markets are showing increasing interest for luxury hotel brands and the US market is by far the dominant market with the most connected and savviest consumers.”
- The US dominates the Luxury Hotel Industry
The US gave birth to the majority of leading hotel chains in the world (75.5% of hotels in the WLI Hotels are American) and US consumers express the largest interest for hotel brands globally (66.3%). Furthermore, their cities are the most sought-after and fastest growing destinations worldwide, attracting a large segment of international travellers. New York leads the way as the #1 most searched city and Washington D.C. as the fastest growing destination worldwide.
David Sadigh, Founder and CEO of Digital Luxury Group: “America’s State Department has now confirmed that US visa application processing times from Chinese and Brazilian tourists have decreased from a matter of weeks or months to just days. With more high income travellers visiting the US, this will have a positive impact on the luxury hotel industry.”
- Surprises abound from BRIC markets
With +12.8% growth, Russia leads the BRIC markets. Brazil is showing slight regression since last year at -12.1%. Fastest growing hotels in the BRIC were: Shangri-La hotel in Brazil (+72%), Hyatt Regency in Russia (+89%), Ritz-Carlton in India (+59% – property set to open Summer 2013) and St. Regis in China (+56%). Most popular international destinations from BRIC markets were: Miami and New York for Brazilian travellers, Hurghada and Dubai for Russians, Dubai and Singapore (Indians), Hong Kong and Singapore (Chinese).
- Hilton, Ritz Carlton and Four Seasons lead their respective categories
Led by Ritz-Carlton, Luxury Major category hotels are fuelling growth (+12.07%) whilst the Upper Upscale category, which accounts for 1/3 of all luxury hotels, captures 3/4 of total global interest but stagnates at -1%. Brands: Hilton, Ritz-Carlton and Four Seasons lead their respective categories: Upper Upscale, Luxury Major and Luxury Exclusive. Hilton Worldwide, Hyatt and Starwood are the Top 3 leading Hotel Groups. Hilton Worldwide ranks first in 4 out of 10 markets: Italy, Germany, United Kingdom and United States, whilst Starwood leads in BRIC markets. Jumeirah is the most rapidly growing amongst the Top 25 Luxury Hotel Groups.
Florent Bondoux, Head of Strategy & Intelligence at Digital Luxury Group: “Four Seasons benefits from an outstanding level of online awareness reflecting a high level of brand desirability. The iconic Canadian brand is a best in class in luxury brand management and has invested massively in digital.”
More detailed data and analysis on a particular brand or topic is available upon request.
About Digital Luxury Group (DLG)
DLG is the first international company to provide luxury industry market intelligence (such as the World Luxury Index™) and use this strategic viewpoint to create and implement unique digital marketing and communication strategies for luxury brands. With headquarters in Geneva, the company has offices in New York and Shanghai.
About Luxury Society
Luxury Society is the world’s most influential online community of top luxury executives. Based in Paris, with members in more than 150 countries, Luxury Society informs and connects CEOs, managers, journalists, consultants, designers and analysts from across the luxury industry.
About Luxury Hospitality 2013
Organised by the International Herald Tribune (IHT) with the Ecole Hôtelière de Lausanne (EHL), Luxury Hospitality 2013 is the first exclusive global think tank designed for leaders in this field. Taking place in Lausanne, Switzerland on 6th June 2013, the summit saw around 100 senior figures and over 20 guest speakers gather to discuss the evolving interpretations of “luxury” and share case studies to help drive their businesses forward.
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