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Concierge Services Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global concierge services market was valued at USD 17.2 billion in 2021 and is projected to expand at a CAGR of 8.6% from 2022 to 2030. The increasing demand for luxury services is driving the market growth. Concierge services are becoming increasingly popular among millennials, who prefer to avail of services like travel and entertainment to save time. Moreover, the rise of the gig economy has resulted in the growth of new-age concierge services. The increasing demand for on-demand services such as food delivery, ride-hailing, and mobile healthcare services has also resulted in the growth of the market.
A growing number of businesses are offering concierge services to their employees to increase productivity and reduce stress. This is because employees tend to be more productive when their life outside the workplace is well managed. Organizations are also providing such services to their customers as a way to increase loyalty. For instance, many banks offer concierge services to their premium customers such as travel booking, restaurant reservations, and event tickets.
The demand for lifestyle and luxury concierge services is expected to remain high due to the high spending capacity of the elite and affluent class. The affluent segment is more inclined to avail of premium services such as personal shopping, event planning, and home maintenance. Furthermore, the increasing popularity of virtual personal assistants is also boosting the demand for concierge services. For instance, in 2020, Amazon launched its Alexa for Business, an AI-based virtual assistant that can be used to manage meeting rooms, place orders, and answer customer queries.
The rising trend of corporate gifting is also driving the growth of the market. Companies are increasingly offering concierge services as corporate gifts to their employees and customers. For instance, in 2020, the U.S. based firm, Concierge Services International, launched corporate gift cards allowing companies to provide their employees with a wide range of services. These services include spa treatments, personal shopping, and travel planning.
The increasing use of mobile applications to enable customers to access concierge services from their mobile devices is also driving the growth of the market. This is because these applications offer a wide range of services such as travel planning, restaurant reservations, and ticket booking. Furthermore, the increasing penetration of the internet and smartphones is expected to boost the adoption of mobile applications, thus driving the market growth.
Product Insights
The concierge services segment held the largest share in 2020 and is expected to maintain its dominance during the forecast period. This is primarily attributed to the increasing demand for premium services among individuals, especially in developed countries. According to an article published by the International Air Transport Association (IATA), in June 2019, the revenue from ancillary services, such as concierge services, is expected to reach USD 86.9 billion by 2021. The growing demand for premium services among consumers, such as airport lounge access and VIP airport transfers, is expected to drive the market growth during the forecast period.
The travel services segment is projected to expand at the highest CAGR during the forecast period. Increasing disposable income and rising trend of online booking of travel services are some of the key factors driving the segment growth. According to an article published by the World Travel and Tourism Council (WTTC), in July 2019, the travel and tourism sector is expected to generate USD 8.9 trillion by 2020 and the online travel market is expected to reach USD 1.6 trillion by 2022. Moreover, the growing demand for budget travel packages, such as group tours and corporate travel packages, is anticipated to boost the demand for concierge services further.
Distribution Channel Insights
The concierge services market is mainly distributed through direct channels. The direct channel is estimated to account for 39.3% of the global market share in 2022. Direct channels include private concierge services, self-employed professionals, and small and large companies offering concierge services. The direct channel allows customers to receive personalized services and get a better understanding of the service provider’s offerings. In addition, the direct channel provides customers with easy access to the concierge service providers and the ability to communicate their needs and preferences directly to the service provider.
The online channels segment is expected to register a CAGR of 10.2% during the forecast period. Online channels include websites and mobile applications operated by concierge service providers. The use of online channels is expected to rise as it provides customers with convenience and access to a wide range of services. For instance, in May 2019, American Express launched a mobile application called ‘Amex Concierge’ to provide customers with access to a variety of concierge services. The application offers services such as restaurant reservations, travel bookings, special event tickets, and more.
Type Insights
The online concierge services segment is expected to be the fastest-growing segment and is anticipated to witness a CAGR of 8.2% during the forecast period. The growing use of the Internet, especially in the hospitality and travel industry, has resulted in the growth of online concierge services. This has enabled hotels and resorts to provide more personalized services to their guests. With the help of these services, customers can book tickets, make reservations, and access online services related to hospitality and travel. Furthermore, online concierge services are also used to provide services related to health and fitness, legal, home, and other lifestyle services.
The offline concierge services segment held the highest revenue share of 50.3% in the year 2022. The increasing demand for offline concierge services in the hospitality and travel industry has resulted in the growth of the segment. Moreover, the increasing trend of personalized services and the growing demand for luxury services among customers has also contributed to the growth of the segment. Furthermore, the growing number of concierge services providers offering offline services has further propelled the segment.
Regional Insights
Asia Pacific accounted for the largest share of the Concierge Services market in 2022, driven by the rising demand for personalized services among affluent customers. Additionally, the rising disposable income in countries such as India, China, and Japan is contributing to the growth of the regional market. For instance, in 2021, MyConcierge, a concierge service provider, launched a new service in India to provide a range of services to customers, such as booking tickets, home maintenance, and other services.
Europe is expected to be the second-largest market for Concierge Services. Increasing demand for luxury services and increasing consumer preference for personalized services are some of the key factors driving market growth in the region. For instance, in 2021, The Luxury Concierge, a provider of lifestyle and concierge services, launched its services in the United Kingdom to provide customers with a range of services such as travel bookings, rare experiences, and home maintenance.
Financial Projections
In this part of the concierge services business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your concierge services business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main sources of revenue for a concierge services business come from providing personalized services such as errands and transportation, personal shopping, event planning, concierge services for travelers, and other services. Here you will find a list with a description of each of them and other possible sources of profit such as freelance work, allowing third-party services to be offered, and subscription-based services.
Projecting Expenses
In this section, all the regular expenses related to keeping the concierge services business running will be described. The list of operating expenses includes wages, taxes, insurance policies, advertising, office supplies, and others.
Key companies & market share insights
Some of the major companies operating in the concierge services market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In June 2022, Amazon announced the launch of Amazon Concierge, an AI-powered platform for personal assistant services.
– In August 2022, Google announced the launch of Google Concierge, an AI-powered virtual assistant platform that offers personalized services.
– In October 2022, Microsoft announced the launch of its personal assistant service, Cortana.
Some of the prominent players in the concierge services market include:
– Amazon
– Google
– Microsoft
– Apple
– IBM
– Deloitte
– Accenture
– Deloitte
– Oracle
– SAP
– ServiceNow
Global Concierge Services Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global concierge services products market based on service type, end user, and region:
1. Service Type Outlook (Revenue, USD Million, 2017 – 2030)
– Personal Concierge
– Business Concierge
– Lifestyle Management
2. End User Outlook (Revenue, USD Million, 2017 – 2030)
– Corporates
– Residential
– Others
3. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What is the Potential of Product Innovation?
[A]: The concierge services market is witnessing an upsurge in the introduction of innovative products and services that are tailored to meet the specific needs of customers. This includes a wide range of services such as travel planning, dining reservations, event planning, and more. The adoption of technology such as AI and ML is enabling companies to automate and streamline their processes, resulting in improved customer experience.
[Q]: Who are the Key Players in the Concierge Services Market?
[A]: Major players in the concierge services market include American Express Company, Vistana Signature Experiences, Inc., Quintessentially Group, LesConcierges, Inc., and TenSquare.
[Q]: Which Region Offers the Largest Opportunity for Sales of Concierge Services?
[A]: North America is expected to provide the largest opportunity for sales of concierge services due to rising demand for personalized services and the presence of leading players in the region.
[Q]: What are the factors driving the concierge services market?
[A]: Key factors driving the concierge services market include the increasing demand for personalized services, the growing number of high net worth individuals, and the rising popularity of luxury services. Additionally, the increasing adoption of technology and the rising demand for online concierge services are also boosting market growth.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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