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Super luxury hotels--$1000+ per night--Is there really lots of demand?

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I want to start this out by saying I don't want to offend anybody. Hotels like this are way out of our budget, and they aren't our travel style anyway. But, having just met some people in Laos who I think were staying in this level of hotel, and having just read the current trip report about Bhutan where a mention is made of a room that costs $1500 a night, I am curious.

While on an overnight cruise in Laos last month we were talking with some fellow guests. They were on a 2-3 week trip and mentioned how happy with the agency ( Audley Travel) they were using. One example they gave was that in Siem Reap the agency had discovered there was going to be a problem with construction noise at their intended hotel, so they were upgraded (at no cost I believe) to the hotel Angelina Jolie prefers. Snoopy soul that I am I quickly googled and figured out which hotel Angelina prefers. Cost is perhaps $1200 a night. After arrival at the Thai border this couple was going to a nearby resort for two nights. After learning how much the Siem Reap hotel cost, I was even more curious and googled Audley to figure out which resorts they used in the area. This was another place that was $1000+ a night. The couple told us that they take a major trip every 1.5 to 2 years and like to treat themselves to nice places during their trips. Of course, I knew none of these things when I first started talking with the couple, and I am certain that this woman was equally astounded at me after I told her that we really liked Siem Reap and were delighted with our second hotel there--$59 per night.

Now I am reading a trip report about Bhutan and mention was made of Aman luxury resorts. And, there is also a comment about a locale where a room at a competing hotel costs $1500. In comparison the poster was more than happy with her $500 a night room. I know we are all different, but $1500 a night for a room astounds me.

Is there a large market of people who travel at this level? What does one get for this level of expenditure (especially in Asia where service is normally quite good already anyway)?

I know we are all different and all have different travel styles, so as I said at the start I do not want to offend anyone.

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