Some 86% of senior executives of large luxury hotel chains expect revenue to increase this year when compared to 2022. This is according to new global research commissioned by world-leading 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 of 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.
| Expected revenue growth in 2023 when compared to 2022 | Percentage of senior luxury hotel executives interviewed who anticipate this level of increase in revenue this year for the hotel chain they work for when compared to 2022 |
| Up to 10% | 8% |
| Between 10% and 30% | 50% |
| Between 30% and 50% | 12% |
| Between 50% and 75% | 10% |
| Between 75% and 100% | 6% |
| It will be about the same | 8% |
| Less | 6% |
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.
| Expected rise in costs this year for the high-end, luxury hotel market when compared to 2022 | Percentage of senior luxury hotel executives interviewed who anticipate this level of increase in costs |
| Up to 10% | 2% |
| Between 10% and 20% | 24% |
| Between 20% and 30% | 50% |
| Between 30% and 40% | 8% |
| Between 40% and 50% | 14% |
| Over 50% | 2% |
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.”
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 team of radio system experts have more than 35 years’ experience and will support and help resolve complex network issues on-site or remotely.
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