A concierge is an individual or company specializing in personal assistance or any other assistance services such as household management, lifestyle management, transportation, travel, and vacation planning, etc. and provides personalized services to its customers (usually high-net-worth clients) at a variable price.
The global luxury concierge service market is projected to surpass US$ 731.4 million by the end of 2030, in terms of revenue, growing at CAGR of 5.5% during the forecast period (2022 to 2030).
Increasing disposal income of consumers across the globe has significantly expanded consumer spending on luxury items and services, which is expected to drive the luxury concierge service market growth across the globe. For instance, according to the report by the U.S. Bureau of Labor Statistics in September 2022, the annual average expenditure of consumers in North America on luxury services increased by 22.3% in the year 2021.
Additionally, growing network and partnership of concierge service providers with hotels, restaurants, and travel service providers are ensuring smooth operation and execution of specific tasks such as travel booking and hotel bookings by clients. For instance, in March 2021, Quintessentially ltd., a luxury concierge service provider, announced that it had entered into a partnership with Dark Horse Capital, a specialist property investment and property fund management company. Quintessentially Ltd. offers services such as travel booking, hotel & restaurant bookings, and instant payments.
Increasing demand for customized concierge services across the globe has significantly drive the global luxury concierge service market growth. Lavish stay during family vacation time or offering customized concierge services for the upper management executives during the business tours is driving the hospitality sector across the globe. Rising operation concerns in restaurants, hotels, and travel agencies is propelling demand for customized concierge services across the globe.
The global luxury concierge service market growth has been negatively impacted by the COVID-19 pandemic. Due to lockdown restrictions, the coronavirus has had a negative impact on all travel and transit activities. Thus, key players in the luxury concierge service market have witnessed a decline in their net sales, owing to lack of service demand from corporate & personal clients.
The rapid spread of coronavirus infection led to strict lockdown rules in the majority of countries worldwide at the start of the year 2020. Physical distancing norms and stay at home orders resulted in the closing down of hotels, restaurants, resorts, and spas. Several conferences, events, social gatherings, and scheduled trips had to be cancelled or postponed in order to contain virus transmission. These factors in turn negatively affected impacted the luxury concierge service market.
North America held a dominant position in the global luxury concierge service market in 2021, accounting for 41.2% share in terms of revenue, followed by Asia Pacific and Europe.
Figure 1. Global Luxury Concierge Service Market, Revenue Share (%), By Region, 2020
The high presence of competitors in the luxury concierge service market makes it difficult for customers to differentiate between the best concierge service providers. The involvement of new key players who claim to offer low cost and cheap luxury services generates increased risk of fraud which is another factor restraining the market growth.
Moreover, luxury hotels and restaurants are also getting involved in the luxury concierge services business by training their staff and hiring special person to do the concierge service work for them, which is a major factor restraining the luxury concierge service market growth.
Luxury Concierge Service Market Report Coverage
|Base Year:||2021||Market Size in 2021:||US$ 458.2 Mn|
|Historical Data for:||2017 to 2020||Forecast Period:||2022 to 2030|
|Forecast Period 20 to 20 CAGR:||5.5%||2030 Value Projection:||US$ 731.4 Mn|
48 London, Alpine Escape, Arburton Ltd, Aspen Luxury Concierge Service LLC, AZ Luxe, Bon Vivant, Globe Infinite, Ibiza Luxury Concierge Service, Innerplace Co., and John Paul
|Restraints & Challenges:||
The growing adoption of online platforms for luxury concierge services is expected drive the market growth by minimizing human intervention. App-based concierge service providers are also getting involved in the luxury concierge service market and are providing digital and online services for the bookings of hotels, restaurants, and traveling tickets such as flight, trains, and buses. These app-based services are quick and easily accessible and it is a new trend in the global luxury concierge service market.
App-based technologies ensure minimum human arbitration. The integration of artificial intelligence helps in catering to changing consumer travel plans by providing them with multiple solutions. For instance, Wyndham’s Wingate, an independently owned group of hotels and Starwood’s hotels, an integrated owner, operator, and franchisor of hotels, resorts, and residences, collaborated with Intelity, a provider of comprehensive guest engagement and staff management services for hotels, casinos, cruise and luxury residential purposes. The collaboration helps Wyndham’s Wingate to offer better dining experience, shopping information, and transportation facilities to its customers through mobile handsets.
Figure 2. Global Luxury Concierge Service Market – Opportunity Analysis
Figure 3. Global Luxury Concierge Service Market, Revenue Share (%), by Service Type in 2021
Key Takeaways of the Graph:
Major players operating in the global luxury concierge service market include 48 London, Alpine Escape, Arburton Ltd, Aspen Luxury Concierge Service LLC, AZ Luxe, Bon Vivant, Globe Infinite, Ibiza Luxury Concierge Service, Innerplace Co., and John Paul.
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