Some 86% of senior executives of large luxury hotel chains expect revenue to increase this year compared to 2022. This is according to new global research* commissioned by communication technology company Communications Specialist Ltd.
Nearly one in 12 (8%) of the senior luxury hotel executives interviewed anticipate revenue growth of up to 10% on last year for the organisations they work for, and half predict growth of between 10% and 30%. A further 12% anticipate growth between 30% and 50%, and some 16% expect revenue to be at least 50% higher.
When comparing expected revenue streams for this year to 2019, 92% anticipate some form of revenue growth.
A key reason for the level of optimism amongst senior luxury hotel executives is that 90% expect occupancy rates at the hotels they work for to be higher this year than in 2022 – 18% predict they will be ‘significantly higher’. For the high-end luxury hotel market as a whole, the corresponding figures are 78% and 20%, respectively.
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 the key to this is investing in technology to ensure even higher levels of efficiency and customer service.”
*Communications Specialist Ltd commissioned the independent research agency Pure Profile to interview 50 senior executives at luxury, high-end hotel chains with annual revenue of $4 billion based in Asia, Africa, Europe, the US and South America.
About Communications Specialist Ltd
Communications Specialist Ltd provides sales support on radio communication systems as well as training, fitting and commissioning of equipment, systems amalgamation, on-site instruction, maintenance and the provision of spare parts internationally to many luxury hotels around the world.
Its radio system experts have over 35 years of experience and will support and help resolve complex network issues on-site or remotely.
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