Europe Luxury Hotel Market- Growth, Trends, Covid-19 Impact and Forecast(2022 - 2027)

Europe Luxury Hotel Market- Growth, Trends, Covid-19 Impact and Forecast(2022 - 2027)

The Europe Luxury Hotel Market is projected to register a CAGR more than 6% during the forecast period (2021-2026).

The market was negatively impacted by COVID-19 in 2020. The global pandemic has shown an impact on the proper functioning of various industries in various regions. It affected Europe Luxury Hotel Market due to reduced travelling because of lockdown being imposed and thus halt in logistics and tourism. COVID-19 affected the tourism sector, which is suffering loses of around EUR 1 billion per month in the EU alone. This is taking a very serious toll, affecting 13 million workers in the sector. The economic meltdown of the entire sector could have a domino effect on other sectors, which would be difficult to manage over the long term. The report study has analysed revenue impact of COVID -19 pandemic on the sales revenue of market leaders, market followers and market disrupters in the report and its analysis.

Europe is the most visited continent in the world – and with good reason too. From stunning natural beauty that will take breath away to deep-rooted culture and traditions that stand strong till date, and from vibrant culinary experiences that delight taste buds in the best kind of way to fun festivals that promise something for everyone – one will find that no matter which countries visit, Europe tourism truly offers it all.

The demand for luxury hotels varies with the type of properties and is influenced by factors such as location, size, and on-site properties. Rising disposable income, popularizing weekend culture, the introduction of low-cost airline services, and the booming service sector are expected to drive the market. The increasing purchasing power and standard of living are some of the key constituents responsible for attracting customers toward luxury resorts. Hosting sports events by a city or country is also a significant factor propelling the demand for luxury accommodations. Sports teams, as well as spectators traveling from different destinations for the tournament, tend to book their stays in luxury hotels, leading to a surge in the number of bookings. Dominant players in the market are investing profoundly in infrastructure and upgrading their property with the latest accessories to enhance aesthetics and the overall comfort offered to customers. The business hotel segment is leading and is expected to dominate the market.

Key Market TrendsGrowing Tourism Activities in Europe

Europe is the global leader in international Tourism, with over 700 million inbound tourists arriving in the region each year. The outstanding growth industry of tourism—supplementing business, professional, and student travel—brings employment and foreign exchange to many Europeans, especially in the Mediterranean countries, with their combination of sunshine, beaches, scenery, and historical monuments. The world-renowned cities of Europe attract large numbers of tourists as well. In fact, European countries are consistently among the top tourist destinations of the world; they draw visitors from within Europe as well as from other continents mainly from North America followed by country China. In 2019, an estimated 2,191 billion euros was contributed by travel and tourism to European GDP, though this number fell by half during 2020 because of the coronavirus pandemic (COVID-19). Meanwhile, the contribution of travel and tourism to the European job market accounted for over 38 million jobs in 2019, and almost 35 million jobs in 2020, denoting a decrease of roughly 9% over the previous year due to the health crisis.

Germany Witnessed Largest Investments in Luxury Hotel Market

The political environment in Germany has been very stable. Also, in terms of tourism, around 75 - 80 percent is domestic tourism so it’s very stable and affordable. Every German hotel market has grown more than three percent per annum, some even stronger. Even though the German markets are very mature, they have performed very well. There is also a big pipeline for each of these top markets, but they seem to absorb the new supply well. However, not all have been able to raise prices at or beyond inflationary levels, so they have remained relatively stable. Munich alone has a larger pipeline than the whole of Switzerland.

Competitive Landscape

The report covers major international players operating in the Europe Luxury Hotel Market. In terms of market share, few of the major players currently dominate the market. However, with technological advancements and product innovations, mid-size to smaller companies is increasing their market presence by securing new contracts and tapping into new markets. The leading brands are opening exclusive stores for special products. The companies are also promoting, differentiating and selling limited editions to increase their visibility and brand awareness in the market.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
Accor
Best Western
Intercontinental Hotels & Resorts
Groupe Du Louvre
Carlson
Rezidor
NH Hotels
Hilton Worldwide
Melia International
Marriott International Inc.
Hyatt Corporation

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