Experiential luxury is set to be heavily impacted by the COVID-19 virus. Broadly speaking, socialisation lies at the heart of all experiential luxury, with high levels of personal service, the use of communal spaces and entertainment characterising the category.
The greatest challenge to experiential luxury as Romania emerges from the virus will be the damage done to the structure of the industry. Experiential luxury depends to a great degree on very high levels of service, something that industry operators like Marriott International have invested heavily in to bring standards in Romania up to the expectations of international travellers.
The government’s attempts to relax restrictions at the beginning of summer may help slow down decline in 2020, but will not restore experiential luxury to growth. Inbound and domestic tourism flows have not returned, and social distancing measures make consumers reluctant to book.
Despite the pandemic, the experiential luxury sector is set to see strong growth over the forecast period as numbers of domestic high net worth individuals continue to rise, inward investment continues to grow and the Romanian government looks to develop a premium-aligned tourism industry. Tourism in Romania remains underdeveloped, and the country has a wide range of cultural and natural resources that could easily be exploited in order to do this.
Prior to the pandemic, there was widespread optimism about the scope for opening more luxury hotels in Bucharest, pushing into second tier cities and building sales to tourists and reducing business dependency. However, in the immediate wake of COVID-19, luxury hotel operators will need to prioritise their bread-and-butter consumers, as tourism demand is likely to remain limited in the short term.
Romania still offers substantial opportunity for inward investment. Experiential luxury is underdeveloped, the country has had a strongly performing economy prior to the pandemic and the number of high net worth individuals is forecast to continue growing strongly over the forecast period.
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Understand the latest market trends and future growth opportunities for the Experiential Luxury industry in Romania with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Experiential Luxury industry in Romania, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
This report originates from Passport, our Experiential Luxury research and analysis database.
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