LUXURY CONCIERGE SERVICE MARKET ANALYSIS

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).

Drivers

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

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Market Restraints

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.

Market Opportunities

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

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Market Trends

• One of the key trends is an increase in technological development such as use social media to give customized services to customers by leading service provider to improve their positions in the market. Luxury groups of hotels, resorts, and restaurant chains are using social media channels for the better understanding of the requirements of their clients, in order to provide better services and meet the client’s demand. For instance, according to the European Journal of Applied Economics report in August 2021, most of the people across the globe are using social media channels such as Instagram, in order to source information and to get customized service, and luxury concierge service providers are also using those platforms to understand the clients’ requirement.

Figure 3. Global Luxury Concierge Service Market, Revenue Share (%), by Service Type in 2021

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Key Takeaways of the Graph:

• The HoReCa segment held a dominant position in the market and accounted for 41.2% share in the global luxury concierge service market in 2021. The segment is expected to reach US$ 731.4 million in 2030.

Competitive Section

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.

Few Recent Developments

• In July 2021, Knightsbridge Circle, a luxury lifestyle and travel management company, announced that it will be launching a new Elite Tier membership in 2022, priced at US$ 97,378.00 per year – making it the most expensive concierge service in the world
• In September 2022, The Double H Experience, a leading luxury hospitality brand in Nigeria, announced the launch of its luxury concierge services, which include, Processing Second Citizenship, Tesla Sales, and Luxury Real Estate Sales