India is quickly becoming a hub for luxury hospitality, with global hotel brands flocking to explore the potential opportunities of a growing market. Combining fabled culture with the rise of an affluent middle class, the Indian hospitality sector offers plenty of potential for hoteliers. Now, according to a recent report by JLL, luxury hotel brands are queuing up for a piece of the action. In this article, we’ll explore why these global players are so keen to make their mark in India.
1. Exploring India’s Growing Appetite for Luxury Brands
In recent years, India has seen a surge in consumer taste for luxury goods. Long considered a “value market,” India is now experiencing a dramatic shift in attitudes towards premium products. Companies such as Rolls Royce, Hermes, Bulgari and Louis Vuitton are some of the international brands investing heavily in India as consumers are seeking out designer labels to express their status, style and wealth.
- Attitude Change: Brand advertising, celebrity endorsements and shopping exhibitions have certainly had an impact. Increasing awareness and disposable income have encouraged consumers to switch from local brands to luxury ones.
- Evolving Markets: With a shift to digital media, luxury products are now becoming more accessible than ever before. Additionally, new malls and online stores across the country are contributing to more choices and convenience, making it easier to buy luxury goods.
Luxury brands are now actively expanding operations in India to tap into the growing demand for their products. It is estimated that India’s luxury sector is currently worth $3.2 billion and is projected to reach $6.8 billion by the year 2020.
2. How JLL is Steering the Expansion of International Hotel Chains
Jumanji Living and Leasing (JLL) gives clients who own international hotel chains the necessary insight and strategic advice to grow their businesses and become more competitive in the industry. With a robust portfolio of services that covers everything from market intelligence to financing structures, JLL is helping steer the chain’s expansion across global markets.
JLL has impressive experience in the hotel sector, offering the following services to hotel owners and operators:
- Consulting: JLL can provide strategic advice to help you design, build and operate a successful hotel property. Solutions include asset management, performance optimization and capital investment.
- Market analysis: Through deep, market-specific analytics, JLL can provide detailed insights into the competitive landscape, pricing structure and other trends that can help you under-stand the key growth areas in the sector.
- Financing: With expertise in bond and loan origination, JLL can help secure the financing you need to execute on your chain’s expansion plans.
JLL’s informed approach enables international hotel chains to expand their brand and reach more customers in a way that is cost-effective and driven by the latest trends in the industry. By leveraging their in-depth research, data-driven solutions and result-oriented approach, JLL serves as a reliable partner that can help you take your chain to the next level.
3. Why Luxury Hospitality is Soaring in India
In recent years, luxury hospitality in India has seen a significant growth. With increasing domestic travel, improving infrastructure, and rising incomes, more and more people are turning to luxury hospitality for their travel needs. Here are a few reasons why.
- Growing Demand and Changing Preferences: As Indian travelers gain more spending power, the demand for luxury hospitality has risen significantly. This is further accentuated by the shift in travelers’ preferences – taking the time to enjoy the finer elements of travel.
- Diversifying Experiences: Luxury hospitality presents travelers with an expansive range of experiences. From spa visits, to extended stays, to amenities reserved for luxury guests – travelers have the ability to shape their travel to their preferences.
The focus on luxury hospitality also reflects a shift in marketing. Travel companies are crafting experiences solely for luxury travelers, such as private pool villas, far from prying eyes and city hustle. And with the advent of luxury hospitality apps - travelers can easily source the best experiences available.
These factors have culminated in luxury hospitality reaching new heights in India. With more travelers turning to luxury, the industry is showing significant growth year on year. And as travelers explore luxurious experiences, businesses are being driven to meet this growing demand.
4. Strategies for Indian Market Entry – JLL’s Take
As India continues to rise in power and stature, many global companies are eager to gain a foothold in the world’s second largest economy. However, there are numerous challenges and strategies that need to be carefully considered in order to successfully enter the Indian market. JLL have some clear strategies for global companies looking to take the plunge.
At JLL, we understand that the Indian market has its own unique set of nuances. Different regions have their own specific qualities and characteristics that can sometimes make them an intimidating prospect. That’s why it’s important to carry out some thorough research and analysis before making any major decisions:
- Undertake a market screening exercise to determine which sectors and regions show potential
- Create a Strategy Review with potential partners and advisers who understand the market
- Analyse the regulatory environment or any complexities that may affect entry to a particular market
- Find the right partner that has local insights and contacts to navigate and develop successful strategies
In addition to these considerations, businesses entering the Indian market also need strong innovative structures – such as cutting-edge technology and advanced logistics capabilities – in order to remain competitive. JLL provide local expertise and global resources, a unique combination that allows us to develop market-leading, innovative solutions.
India’s luxury hotel market is set to continue growing in leaps and bounds in the years to come. The demand for high quality services and amenities, combined with advanced technology and the discerning tastes of a booming traveler’s population, point to this as a sector that will go from strength to strength. As this sector grows in size and sophistication, established and emerging luxury hotel brands should take note and seize the opportunity to create memorable experiences for their valued guests. In the end, helping to ensure that the luxury India hotel market maintains its status as a premier destination for global travelers.
