What Are The Factors Leading to The Increase of Luxury Hotel Properties & Luxury Hotel Business in India in 2023?

Factors Impacting Growth of Luxury Hotel Properties & Luxury Hotel Business in India 

The post-covid age has seen a rebirth in the luxury hotel business in India as more and more people seek out luxurious vacations and accommodations.

The luxury hotel market is expected to reach $115.8 billion by 2023, according to estimates by industry analysts.

Artificial intelligence (AI), machine learning (ML), the Internet of Things (IoT), near field communication (NFC), mobile payment (MoPay), and data analytics are all being used by the best hotels to boost online bookings, boost the return on advertising dollars spent, better understand guest preferences, and foster stronger relationships with guests.

The market is likely to benefit greatly from these technologies throughout the forecast period.

Business in India's high-end hotel industry is booming. As international sporting events, trade fairs, and exhibits become increasingly common, it is expected that the influx of foreign visitors and domestic tourist movement would increase.

Luxury hotel market trends have been rising steadily in recent years, thanks to the growing travel and tourist industry and rising consumer expectations. Throughout the projected period, the India Hotel Market should be driven by factors including improving purchasing power parity among domestic travellers, an expanding airline sector, higher international visitor arrivals, and reduced visa rules.

The projection for the Indian luxury hotel sector is bolstered by the GST council's decrease of the luxury hotel rate from 28% to 18%. The worldwide epidemic of Covid-19 has had a damaging effect on the economy, disrupting a number of different sectors in India.

Let's investigate the factors that are leading to this boom in high-end hotels in India:

Domestic travel spending is on the rise, and not only among Indian tourists who often visit other countries. Increased spending by domestic leisure travellers has boosted the luxury and branded hotel business. These vacationers aren't only staying at luxury hotels; they're also spending big bucks while they're there. Luxury hotel brands have seen the most growth in the domestic leisure travel market.

The heritage theme is expanding rapidly, and by the end of the projection period, it will have captured the greatest portion of the market. These hotels are located in historically significant areas and make an effort to showcase regional culture through showcasing regional art and food. In contrast, modern 5-star hotels prioritise guests' comfort by installing state-of-the-art Internet of Things (IoT) infrastructure.

An increasing number of vacationers are looking for more than just a comfortable bed when they travel. In response to this trend, many high-end hotels now provide guests with immersive, individualised experiences. Luxury hotels provide its visitors with unique opportunities, such as exclusive tours and invitations to special events.

The desire for upmarket services is on the rise, and upmarket hotels are responding by providing everything from high-end shower products to cutting-edge fitness centres. Luxury hotels are increasingly providing in-room high-end audio systems and smart home technologies.

Providing customised care is essential: Luxury hotels have long been known for their attentive staff, but modern travellers have higher standards. In order to provide customers with service that is tailored to their individual interests, high-end hotels are increasingly making technological investments. Luxury hotels go to great lengths to ensure their guests have a pleasurable stay by providing amenities such as in-room iPads and individualised concierge services.

According to research from various relevant sources, luxury travel in India is mostly driven by young adults who are prepared to spend more money on unique experiences. The survey also found that luxury travellers are particularly interested in health and adventure activities.

Conclusion:

The luxury hotel sector is booming in the post-covid age, thanks to the increasing demand for one-of-a-kind vacations, posh accommodations, and attentive staff. High-end facilities and individualised, anticipatory service are just two examples of how luxury hotels are investing in experiences that appeal to their customers' refined preferences.