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What Is The Target Market For Luxury Hotels? Let’s Define The High-End Hospitality

Understanding the Luxury Hotel Target Market

According to Future Market Insights (FMI) research, the global luxury hotel market was valued at approximately US$99.868 billion in 2023. It is expected to grow and reach US$117.169 billion by 2033, reflecting a compound annual growth rate (CAGR) of 5.3% from 2023 to 2033.

As a growing part of the hospitality industry, luxury hotels must be delivered perfectly. It’s even before the guest decides to stay at your luxury hotel. So, let’s delve deeper into what the target market for luxury hotels is. Let’s understand the perfect strategies for creating services and marketing strategies that align with this segment.


Premium and Exclusive: Defining High-End Hospitality

Running a luxury hotel means you have to go above and beyond. You need to make the guests feel incredibly special. To define high-end hospitality, you must provide beautifully designed rooms, top-notch amenities, and good service that every wish is granted before they even ask.

A luxury hotel is not just a place to stay; it’s an escape into a world of comfort, style, and pampering. Everything from fancy meals to personalized services is crafted to make guests feel like royalty.

According to data from the Indonesian Central Statistics Agency (BPS), there were 252 five-star or luxury hotels in Indonesia in 2023, which accounted for only 6.1% of the country’s total star-rated hotels. 

In 2023, Bali had the highest number of luxury hotels in Indonesia, with 94 hotels representing 37.3% of the total five-star hotels in the nation from the preceding year.

Given those numbers and data, it’s crucial to understand what the target market for luxury hotels is. Establishing premium and exclusive branding and marketing for your hotel should be the first step.

Read More in Depth:  Luxury Hotel Marketing: 10 Strategies to Boost Exclusivity

What Is The Target Market For Luxury Hotels: 5 Key Groups You Should Focus on

Infographic of Satuvision on 5 Key Groups You Should Focus on as part of What Is The Target Market For Luxury Hotels

When identifying the target market for luxury hotels, it is important to understand at least five key segments and their corresponding strategies.

High-income individuals

One of the target markets for luxury hotels is high-income individuals. With significant incomes, these guests are willing to pay premium prices for luxurious accommodations and personalized services.

Potential:

Indonesian Central Statistics Agency (BPS) shows that the occupancy rate of 5-star hotels in Bali at the beginning of 2024 consistently remains above 50%.

Strategies to Attract High-income individuals:

  • Partner with Luxury Brands: Collaborate with high-end brands to offer exclusive loyalty programs. These partnerships can include perks like special discounts, VIP events, and unique experiences that appeal to potential guests. 
  • Targeted Marketing Campaigns: Develop marketing campaigns that specifically target high-income individuals. Use data and analytics to identify and reach this audience through channels they frequent. Highlight your hotel’s exclusive and luxurious aspects, such as private suites, gourmet dining, and personalized services.

Tangible Actions:

  • Exclusive suite offers.
  • Personal concierge services.
  • Luxurious culinary experiences.

Business executives and corporate travelers

Executive-level professionals and business travelers seek comfort and high-end facilities during their trips. Due to the consistent demand for business facilities and accessibility during travel, they have become an attractive target market for luxury hotels.

Potential:

Bali Provincial Tourism Office reported that 58 events will be held in Bali throughout 2024. This is a highlight of how business executives and corporations are a promising market.

Strategies to Attract:

  • Collaborate with Corporations: Offer business packages and promote corporate events. Luxurious Amenities include meeting and conference rooms, fast Wi-Fi, and 24-hour service.

Luxury travelers

Travelers seeking exclusive and lavish experiences, including affluent tourists, celebrities, and high-profile personalities, form part of the luxury hotel target market.

Potential Market Size:

The global luxury hotel market is expected to grow and reach US$117.169 billion by 2033, reflecting a compound annual growth rate (CAGR) of 5.3% from 2023 to 2033.

Strategies to Attract:

  • Advertise in Fancy Magazines: Place ads in high-end magazines that cater to niche audiences. Collaborate or partner with high-end travel agencies to reach their exclusive clientele. This can help position your hotel as a top choice for luxury travelers who trust these premium publications and agencies.
  • Exclusive Experience Packages: Offer unique experience packages that highlight what makes your property special. Whether it’s a private beach dinner, a personalized spa retreat, or exclusive access to local attractions, these packages can be a unique selling point which can attract guests looking for extraordinary experiences.

Wellness and spa enthusiasts

Wellness and spa enthusiasts prioritize their health and well-being, seeking accommodations with comprehensive wellness amenities and spa facilities.

Market Size and Bali’s Potential:

The global wellness tourism market reached US$948.5 billion in 2023 and is expected to reach US$1,605.4 billion by 2032.

The Indonesian government recognizes wellness tourism in Bali as an attractive and growing market. This indicates that Bali is increasingly recognized as an attractive wellness destination, with significant growth in the health and wellness tourism segment.

Strategies to Attract:

  • Exclusive Health Retreat Programs: Collaborate with renowned body care brands to offer exclusive health retreat programs. These partnerships can include specialized treatments and wellness packages that attract guests seeking rejuvenation and relaxation. 
  • Luxurious Spas & Treatments: Invest in advanced fitness facilities, yoga sessions, and healthy retreat programs. Offering state-of-the-art spa treatments and fitness options can attract health-conscious high-income individuals. Highlight these services’ luxurious and personalized nature to show guests that your hotel prioritizes their well-being and comfort.

Special occasion celebrants

Surge in Demand for High-End Hotels

High-end hotels are experiencing an increase in special occasion celebrations, as reported by Travel Weekly. This surge in demand presents a fantastic opportunity to attract more guests for weddings, anniversaries, and other significant events.

Strategies to Attract Special Occasion Celebrations

  • Specialized Marketing: Target your marketing efforts specifically towards weddings and events. Highlight your hotel as the perfect venue for these special occasions.
  • Collaborate with Wedding Service Providers: Partner with local wedding planners, florists, and photographers to promote exclusive celebration packages. This can enhance your hotel’s reputation as a premier destination for unforgettable events.

Tangible Actions to Implement

  • Luxurious Wedding Facilities: Ensure your hotel offers elegant and well-equipped venues for weddings and other celebrations. Beautiful ballrooms, scenic outdoor spaces, and customizable setups can make your hotel a top choice.
  • Special Celebration Packages: Create all-inclusive packages that cover every celebration detail, from the ceremony to the reception. Offering seamless, stress-free planning will attract couples looking for a hassle-free experience.
  • High-Quality Catering Services: Provide gourmet catering options that can be tailored to suit the tastes and preferences of each event. High-quality food and exceptional service will leave a lasting impression on guests.
Ultimate Guide: Hotel Branding Strategies in Bali’s Hospitality Industry

Conclusion: Understanding What Is The Target Market For Luxury Hotels?

Understanding what is the target market for luxury hotels is not just about recognizing a specific group; it’s a strategic necessity for success in the high-end hospitality industry. From high-income individual travelers to wellness enthusiasts and special occasion celebrants, each group offers unique opportunities for tailored experiences and targeted marketing approaches.

Given the promising growth projections and the specific needs of these market segments, it becomes imperative for luxury hoteliers to delve deeper into understanding their target audience. Establishing premium and exclusive branding and marketing strategies becomes the foundational step in capturing the attention and loyalty of these discerning travelers.

Understanding what is the target market for luxury hotels transcends mere market analysis—it’s about crafting bespoke experiences, fostering meaningful connections, and redefining the standards of luxury hospitality. By embracing this approach, you can position yourself at the forefront of the industry, offering unparalleled experiences that resonate with your discerning clientele.

Frequently Asked Questions

Luxury hotels and resorts target affluent individuals, sophisticated travelers seeking unique experiences, and individuals prioritizing bespoke and top-tier services.

Prioritize Customization: Craft experiences and promotional strategies that cater to each guest’s preferences. Enhance Digital Visibility: Establish a strong online and mobile presence to connect with contemporary luxury travelers. Showcase Distinctive Attributes: Spotlight your hotel’s special characteristics to set it apart from others in the market.


If you’re ready to enhance your luxury hotel’s marketing, contact us today to learn more about our brand strategy service.

Harun Arrasyid has a Bachelor's degree in Travel and Tourism Industry and experience in marketing and communication. He worked for two years as a journalist and editor in the media industry, and have skills in copywriting, content writing, digital marketing, social media management, administration, and event project management. Harun is a driven and adaptable person who is looking to pursue a career in marketing, digital marketing, social media management, administration, or event project management.
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