Wednesday, June 26, 2019
America will have 1,067 luxury hotels by the end of 2019. At a compound annual growth rate (CAGR) of 1.7 per cent, this number is bound to rise to 1,123 by 2022 as per ‘Destination Market Insights: US’ report. The rise is driven by driven by increasing numbers of Chinese tourists. The growth showcases the gradually increasing demand from international and domestic source markets for more luxurious offerings within the U.S.
Luxury hotels such as Four Seasons state that China is their second-largest source market. Chinese travellers are boosting revenues for Four Seasons. Chinese tourists are a high spending source market and their visitation numbers to the U.S. have been growing rapidly in recent years. A CAGR of 8.7 per cent was recorded in Chinese visitation to the U.S. between 2014 and 2018.
The report also states that the average spend per inbound tourist in the U.S. is expected to carry on its upward trend. From 2016 to 2018, average expenditure has risen at a CAGR of 3.2 per cent from U.S. dollars 2,534 to U.S. dollars 2,700.
As per Ralph Hollister, Travel & Tourism Associate Analyst at GlobalData, said that the increase in average expenditure is creating a rising demand for luxury services whilst on vacation, especially in the accommodation sector. He added that hotels opening in up-and-coming areas away from city centres will help to reduce the effects of overtourism and are more socially sustainable. Luxury hotels opening in once industrial or downtown areas within large cities will be a continuing trend. Luxury consumers are moving away from standardization as the millennial market grows in size.
Tags: luxury hotels, US
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