The Year Ahead in Luxury Travel

By 2020, it is anticipated that the number of ultra-wealthy individuals will exceed 318,000 with their cumulative net worth rising 54% to $46.2 Trillion USD.

Rise in purchasing power and standard of living are some of the key factors responsible for attracting customers toward luxury resorts. As more money is being injected into the economy, demand for luxury accommodations for corporate events, corporate stays, and leisure trips is rising.

Simplicity, Wellness and Integrated Experiences

The luxury consumer in 2019 is seeking integrated experiences that align their various passions in a seamless whole, whereby the convergence of elements delivers a sum greater than its parts. According to The Future Laboratory’s new Luxury Futures Report, “Luxury brands are becoming convergence spaces that facilitate culture, education and wellness, combining diverse consumer needs into a single, multifaceted lifestyle zone.” Resort design in the coming year will be influenced by the tendency to step away from brand standards and develop storylines for properties. 

Industry Insights

The global luxury hotel market size is expected to reach USD 115.80 billion by 2025, according to a new report by Grand View Research, Inc., registering a 4.3% CAGR during the forecast period. The market is expected to grow significantly over the forecast period owing to increasing purchasing power of consumers and rising number of international as well as domestic tourists on business or leisure trips.

Ten trends and buzzwords for boutique hotels:

• Experience and integrity: Boutique hotel guests are looking for something different from the “cookie cutter” approach. It is essential to give them an experience they will remember fondly, and this is more important than getting obsessed with design details.

• Clubs: Look out for a proliferation of members’ clubs incorporated in to boutique hotels, particularly in key urban markets such as London and New York.

• Caring for the environment: There is a small but growing band of environmentally aware travellers who are increasingly concerned with their carbon footprint. Boutique hotels can cater for them in a variety of ways from serving locally sourced, seasonal food to allowing guests to control their energy usage. It is also important not to force the green agenda down people’s throats.

• Boutique goes budget: Until now boutique hotels have been operating at the upper end of the price scale, but there is huge scope for budget hotels to offer a more distinctive, less homogenised experience.

• In-room technology: It’s important for boutique hotels to offer technology that is at least as good as the guest would expect to have in their home, but it must be user friendly and practical. The technology must also sit comfortably if installed in heritage buildings, and not jar with its surroundings.

• Authenticity: Boutique hotels are particularly suited to conversions of historic or interesting buildings. By doing this with sensitivity to the materials used and the original structure, they can be among the most sustainable and authentic hotels in terms of the built environment.

• Variety: Boutiques can capitalise on their flexibility and independence by providing individually designed guestrooms rather than standardised offers.

• Location, not brand: Boutique guests are looking to interact with the hotel itself, and the passionate people who drive it and provide great service, not a company or an international brand.

• Boutique B&B: A significant trend towards offering B&B in distinctive, design-led properties with a range of added service and experiences available, such as visiting chefs, wine tastings etc.

• Lifestyle hotels: While the multinationals will struggle to replicate the true boutique experience, they will increasingly focus on the lifestyle model of 100 to 200 room hotels, using their economies of scale and management experience.