Concierge Services Market Analysis Report By Type of Assistance, By End User, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The global concierge services market size was accounted for USD 537.6 million, in 2018 and is projected to grow at the CAGR of 5.3% over the forecast period, 2019-2025. The top-most celebrities, top-level managers, and VIP customers outsource specialized tasks for personal assistance or concierge services. In addition, a busy lifestyle and hectic schedule are anticipated to boost the market growth.

Emerging economies and increasing income levels of consumers across the globe are driving the market for such services. The growing hospitality sector, thereby, rising operation concerns in restaurants, hotels, and travel agencies is expected to propel the adoption of concierge services among their employees. Concierge service operators reduce the time for documentation which helps in serving the consumer in a better and faster way. In the tourism industry, the service provider keeps track of all the passport and visa services, baggage, and customs procedures which provide convenience to the travelers. This is projected to boost the need for concierge services in the tourism and hospitality sectors.

Increasing demand for customized services is propelling the demand for this service. Concierge service allows its consumers to pay only to service which they have availed and cuts down the membership cost. For example, in May 2017, Bentley has tested the on-demand luxury service for its consumers in New York, Los Angeles, and Dallas. Consumers who want to try and experience other models can drop their requirement on their specially designed application called the Bentley Network app. 

Advanced technologies are boosting the adoption of such services over the forecast period. These technologies ensure minimum human arbitration. Integration of artificial intelligence help in catering to changing consumer travel plans by providing them with multiple solutions. For instance, Wyndham’s Wingate and Starwood’s hotels have collaborated with a company called Intelity to offer a better dining experience, shopping information, and transportation facilities to its customers through mobile handsets. Hyatt Hotel chain uses social media to address and understand consumer needs. 

Type of Assistance Insights

The market for concierge services is bifurcated into transportation, and HoReCa & entertainment based on the type of assistance. The transportation assistance segment is projected to grow at a CAGR of 5.0% from 2019 to 2025. Customers who travel frequently use the concierge services for finding the best route to their commutation and for a better experience. Service providers are highly conversant with the social and cultural aspects of traveling and ensure the best service quality to be delivered.

The HoReCa & entertainment segment is projected to grow at a significant rate over the forecast period and is projected to hold the highest share by the end of 2025. Concierge services are useful in spa services, transportation, restaurant bookings, assisting clients, and event tickets. Youngsters are influenced by these services while traveling and are expected to foster the market demand. A growing number of luxury hotels and restaurant reservations are contributing to the growth of HoReCa assistance. In addition, the growing number of operas, live concerts, and shows with the high demand for VIP passes is anticipated to propel the demand for such services. 

End-User Insights

By end-user, the concierge services market is bifurcated into personal and corporate segments. The personal user segment is projected to grow at a CAGR of 6.1% from 2019 to 2025. Single parents, executives, and C-suite executives who are changing their job positions prefer these concierge services. The increasing popularity and rising inclination to pay more on luxury hotels and restaurants among the younger generation is expected to drive the segment growth over the forecast period. 

The corporate user segment is projected to grow at a significant rate from 2019 to 2025. Growing demand for hosting annual functions and corporate parties, and the rising popularity of event planning are the factors boosting the market growth. Some of the service providers have small base clients as their customers. These services are also providing various provisions to their onsite staff. This factor is anticipated to propel the demand for such services in the near future.

Regional Insights

Asia Pacific is projected to grow at the highest CAGR over the forecast period. The presence of high net worth individuals across countries such as India, China, and Japan is supporting the market growth. According to CEOWORLD magazine, China had 819 billionaires in 2018, which is the highest in the world by country proportion. Furthermore, transport assistance services are also anticipated to boost market growth.

North America is expected to continue its dominance in overall the market in terms of market share. As per the study of the U.S. Bureau of Labor Statistics, majority of the American spend an average time of 5.2 hours on sports and leisure activities. Thus, increasing leisure time through outsourcing of tasks is expected to propel the demand for concierge services in the region.

Impact of COVID-19 Insights

The COVID-19 pandemic has negatively impacted the global concierge service market. Coronavirus has adversely affected all travel and transportation activities owing to lockdown restrictions. Thus, the key participants have witnessed a decline in their net sales owing to lack of service demand from corporate & personal concierge services. For example, Knightsbridge Circle has suffered a loss of revenue due to a reduction in service demand.

Further, amid the pandemic, the companies are focusing on catering to consumer demands through remote or virtual services. Domestic flights have opening up across the globe are expected to boost the growth of the travel industry. Thus, the market for concierge services is projected to grow at a steady rate over the forecast period.

Concierge Services Market Share Insights

Leading players in the market include Knightsbridge Circle, Quintessentially Group, MyConcierge, Pure Entertainment Group, Velocity Black, The Fixer Lifestyle group, Sky Premium International, The Billionaire Concierge, and Bon Vivant.

Top players in the market are taking additional efforts to meet consumer demands. For instance, Quintessentially Group has Sydney Harbor Bridge for functional event services. An increasing number of high-net-worth individuals (HNWI) are pushing service providers to develop platforms that can satisfy customer needs.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2015 to 2025. For the purpose of this study, Million Insights has segmented the global concierge service market report on the basis of type of assistance, end-user, and region:

• Type of Assistance Outlook (Revenue, USD Million, 2015 - 2025)
    • Transportation
    • HoReCa & Entertainment

• End User Outlook (Revenue, USD Million, 2015 - 2025)
    • Corporate
    • Personal

• Regional Outlook (Revenue, USD Million, 2015 - 2025)
    • North America
        • U.S.
    • Europe
        • France
        • U.K.
    • the Asia Pacific
        • China
        • Japan
    • Central & South America
        • Brazil
    • Middle East & Africa (MEA)
        • UAE