Insiders predict growth of between 10% and 50%
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.
Nearly 8% of the senior luxury hotel executives interviewed anticipate revenue growth of up to 10% on the previous year for the hotels they work at, and half predict growth of between 10% and 30%, while 16% expect revenue to be at least 50% higher.
Across the board, when comparing expected revenue streams for this year compared to 2019, 92% anticipate some form of revenue growth.
Reasons to be Optimistic
A key reason for the level of optimism among hotel executives is that 90% expect occupancy rates at the hotels they work for to be higher in 2023 than in 2022.
Other factors thought to contribute to the rise in revenue were highlighted: 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.
More than a third or respondents said revenue increases could be due to the luxury hotel experience becoming even more sophisticated, and 33% said the guest experience becoming more personalised had resulted in more business.
While revenues are expected to rise, all of the respondents interviewed said that overall supply chain costs for the luxury hotel segment will be higher in 2023 than in 2022. Almost a quarter (24%) of those questioned expect them to be at least 30% higher.
Communications Specialist Ltd chief marketing officer Kevin Buchler 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 high net worth individuals supporting long-term growth in the sector.
“It's also clear from our study that standards continue to improve within the high-end hotel market, and key to this is investing in technology to ensure even higher levels of efficiency and customer service.”
For more information, visit www.comms-spec.com