NASHVILLE, Tennessee — The runaway success of the luxury hotel segment has been one of the major talking points of the post-pandemic recovery, and while there is still a lot of running power in its legs, luxury demand is seeing some changes, according to Aoife Roche, commercial director at STR, CoStar’s hotel analytics division.
Speaking to Hotel News Now at the Hotel Data Conference, Roche said luxury spending is not exhausted.
“There’s still plenty of demand left, particularly as new markets open up,” she said.
Those markets are, now, Europe, which is benefiting from increased demand from U.S. guests, and, soon, Asia, she added.
“Outbound international travel from the U.S. has grown back to 2019 levels. It is actually at about 101% of where it was in 2019. … Domestic [luxury] travel has as a result been in decline, and the U.S. market and luxury is seeing that change already,” Roche said.
Roche also commented on the increase in choice in the luxury arena, with STR data showing that in 2008 there were 15 recognized luxury brands, while in 2023 that number has rocketed to 52.
Roche said while some guests might be confused by the array of offerings, individual brands have done much in innovation and loyalty to maintain their share of market.
“There is definitely a lot of choice, but it is catering for the different needs of travelers,” she said.
For more of Roche’s comments, watch the video at the top of this article.