High-End Hotel Market Segmentation: APAC
Tourism seems to be the dominant motivation for APAC luxury hotel customers. One hotel reports that German and Scandinavian customers are disproportionately represented among their customers, but this data may not extrapolate out to all APAC luxury hotels. Unfortunately, we were unable to find a broad cross-section of data sources that broke down APAC luxury hotel customers with enough detail to present a high-confidence, detailed picture of all such customers. Some helpful findings that our research team uncovered have been presented below.
- Sule Shangri-La, Yangon, is a luxury hotel in Myanmar, Southeast Asia, that features 470 rooms and suites.
- Per a survey done among the customers of this luxury hotel, hotel users' purpose of travel could be segmented in the following ways:
-- Tourist: 90.6 percent
--Business: 1.8 percent
--Visiting Friends/Relatives: 1.8 percent
--Others: 5.8 percent
- In terms of origination location the hotel customers had the following segmentation:
--ASEAN: 13.5 percent
--Asian: 4.1 percent
--European: 5.3 percent
--German: 28.1 percent
--Scandinavian: 31.0 percent
--Others: 18.0 percent
- Although the segmentation was not available as generations (millennials, Gen X, boomers, etc), but it was available by age:
--Under 30 years: 15.2 percent
--31 — 40 years: 19.3 percent
--41 — 50 years: 18.1 percent
--51 years and over: 47.4 percent
Types Of Emerging Travelers In Asia Pacific:
- Although this data is not specific to the users of luxury hotels, the types of travelers in Asia Pacific all into the following categories:
--EXPLORER: People who place high value on self-actualization and discovery: 38 percent
--FOLLOWER: People for whom travel is about enjoying the moment with loved ones: 23 percent
--CONNECTOR: People for whom travel is about establishing status: 20 percent
--OPPORTUNIST: People who like to travel to pamper themselves but are also tempted by promotions: 18 percent
- Also in terms of country of origination Asia Pacific travelers break out as follows:
--China: 16.2 percent
--South Korea: 10.5 percent
--Taiwan: 7.0 percent
--USA: 6.7 percent
--Japan: 5.8 percent
--UK: 3.8 percent
--Other: 50.0 percent
- For luxury hotel users in the city of Shanghai, China the demand from business and MICE travelers is increasing.
- In their luxury travels, affluent Asian consumers are seeking new forms of wellness experiences in the face of hectic modern lifestyles. They are looking to combine their wellness mindset with the escapism of luxury tourism.
- Following this development as mentioned above, pioneering brands in the luxury hotel market are now offering retreats with holistic wellness, featuring cutting-edge techniques, technologies, and services.
- Per the Asia Pacific Hotel Investment Outlook and Trends 2019 report by JLL, the modern-day luxury consumers are increasingly seeking out experiences, placing less emphasis on acquiring material goods.
- In selecting hotels, Asian travelers, particularly those from China, value hotel brands much more than Europeans, with 82 percent of Chinese travelers indicating hotel brands as an important factor while choosing hotels.
We began our research with respected market research sources such as Markets and Markets, Mordor Intelligence, Market Research, Technavio, GMinsights, and their peers. We also explored data from consultancies such as Accenture, Deloitte, PWC, McKinsey, and BCG. Although these sources often publish detailed market data, we did not find any freely available report that broke out the data on Asian luxury hotel customers with enough granularity to be useful.
Next, we turned to hotel industry sources, such as the Global Hotel Alliance, Global Hotel Network, STR Global, and International Hotel & Restaurant Association, among others. Unfortunately, this source also failed to offer sufficiently specific data segmentation.
Our next strategy was to look at booking and travel sources along the lines of Expedia, GoIbibo, and Trivago. While some of these sources provided insights into the preferences of travelers, the data that emerged from this strategy was not sufficient to create a complete picture of the APAC luxury hotel customer.
Thinking creatively, our research team explored the idea of compiling additional data by surveying interviews and thought leadership pieces written by C-level executives in and associated with major hotel chains in Asia. We looked at the writings of leaders from The India Hotels Company, Shangri-La Group, Oberoi Group, Aman Group, Pan Pacific Hotels Group, Mandarin Oriental Group, and others. This strategy did not bear fruit.
We tried broadening our scope to include business-related press from well-regarded general media sources such as South China Morning Post, Sydney Morning Herald, Bangkok Post as well as global business publications such as Forbes, Business Insider, and CNBC. These sources provided only a few additional insights.
As a final strategy, we turned to academic writings, exploring research papers from Academia and Research Gate, etc. This strategy produced a few helpful findings but the statistics often lacked the specificity needed to be truly useful.