The growing wealth: The segment will double by 2029

Indians are spending 44% on luxury, global average is 35%

The luxury hotel industry in the country is growing rapidly. According to market intelligence firm Mordor, the luxury hotel industry in India is worth around Rs 19 thousand crores this year. It is estimated to double to around 38 thousand crores by 2029. This industry is growing at an annual compounded rate (CAGR) of 10.06%.

In fact, in a country with a population of more than 140 crore, international and domestic tourists are increasing rapidly due to the increase in international sports events, trade fairs and exhibitions. Meanwhile, the spending of the Indian wealthy class on luxury has gone above the world average. According to HSBC’s ‘Global Entrepreneurial Wealth Report 2024’, Indian entrepreneurs are ahead of the rest of the world in terms of spending on luxury. They spend 44 percent on luxury, while the global average is 35 percent. The Indian hotel industry is especially benefiting from this.

Hotels are developing a separate segment especially for luxury

Many hotel brands in the country are developing a separate segment for luxury. These include brands like Taj Hotels Group, Radisson, The Leela Palace and Hyatt. For this, they have done research on the existing facilities and shortcomings. On this basis, luxury hotels have started offering customized services to guests. Facilities like removing restrictions on check-in and check-out time at the bar, serving breakfast at desired time, late night pool party, personal chef and barista are part of this kind of service.

Stock market boom, strong economy is supporting it

Sandeep Batra, Wealth and Personal Banking Head, HSBC India, says that the Indian hotel industry is getting additional support due to many reasons. With the boom in the stock market and strong economy, the number of super-rich people is also increasing continuously. They are taking the luxury market to new heights. This includes luxury hotels.