According to new global research commissioned by communication technology company Communications Specialist Ltd, 86% of senior executives of large luxury hotel chains expect revenue to increase this year compared to 2022 and over 9 out of 10 (92%) expect revenue growth compared to 2019.
Nearly one in 12 (8%) of the senior luxury hotel executives interviewed anticipate revenue growth of between 30% and 50%, 16% expect revenue to be at least 50% higher, half predicting growth of between 10% and 30% with 8% expecting growth of up to 10% on last year for the organisations they work for.
A key reason for the level of optimism is that 90% expect occupancy rates to be higher this year than in 2022 – 18% predict they will be ‘significantly higher’.
When asked for other reasons for optimism around revenue growth, 70% of senior hotel executives interviewed cited the growing population of mass-affluent and high net worth individuals, and 57% said it was because people are generally looking to spend more on their holidays following the Covid-19 lockdowns. Some 39% said it is because the luxury hotel market experience has improved and become even more sophisticated, and 33% said it was due to the guest experience becoming more personalised.
However, although revenues are expected to rise, all of the respondents interviewed say overall costs for the high-end, luxury hotel market will be higher in 2023 than last year. One in four (24%) expect them to be at least 30% more.
Kevin Buchler, Chief Marketing Officer at Communications Specialist Ltd, said, “Our research shows that the luxury hotel market is very optimistic about market growth this year. They expect occupancy rates to be higher than in 2022, and there are several factors such as a growing population of mass affluent and high net worth individuals supporting long-term growth in the sector.
“Our findings also suggest that there is still a ‘bounce-back’ from the pandemic with many people wanting to spend more on their holidays this year to make up for the lack of vacation time during the recent Coronavirus lockdowns.
“It is also clear from our study that standards continue to improve in the high-end hotel market, and key to this is investing in technology to ensure even higher levels of efficiency and customer service.”