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MODIV1/23/24 11:27 AM1 min read

Luxury By Any Other Name Would be the Same

It’s undeniable – we’re witnessing a strong shift in how consumers perceive luxury.  

Traditional luxury hallmarks include superior quality, exceptional service, and a premium experience that can be counted on to deliver every single time.  

The hospitality luxury market has undergone increasing commoditization in a relatively short amount of time. Hotel brands categorized as luxury on the STR chain scale have jumped from just 15 in 2008 to more than 50 in 2023. This doesn’t even factor in the number of brands introduced into the upper upscale category, which many consumers consider to be interchangeable with luxury brands.  

Faced with a seemingly endless array of options, customers are struggling to sift through the catalog, resulting in more and more brands being overlooked. 


Luxury, Uscale Brand Increases


Recent MODIV Mindset data backs this up, with 77% of travelers stating they are “confused” or “very confused” about which hotel brands are considered luxury.  

Like the high-end fashion and luxury automobile industries, luxury in the hotel space was once synonymous with well-established brands. The now ambiguous definition and proliferation of luxury accommodation options have left consumers confused about which brands to trust with their experiences, spending, and loyalty.  

While the growth of the category has led to innovations, it’s diluted the weight the designation used to guarantee.  

When everything is luxury, nothing is luxury.