UK Luxury Travel Market Report 2025
"Brands can leverage demand for 'unique' holidays and quality experiences to drive spend."
Sinead O'Connor, Travel Analyst
UK Luxury Travel Market – Trends and Insights
- Over half of consumers with a household income of £75K+ report improved financial wellbeing compared to last year, showcasing resilience despite rising inflation and economic uncertainty. While their disposable income has slightly decreased, they continue to prioritise travel experiences, demonstrating strong spending power.
- Holiday spending has increased, driving growth in the luxury segment, particularly in high-spending categories. However, there is a noticeable shift towards shorter trips, with stays of 1-6 nights becoming more popular. This trend reflects a focus on quality over quantity, as travellers seek luxurious and impactful experiences rather than extended holidays.
- To meet evolving consumer demands, brands must align their value proposition by promoting meaningful luxury and indulgent escapes. Highlighting the emotional and experiential value of travel can encourage consumers to trade up, even in shorter trip formats.
- Luxury travellers increasingly value new, exclusive, and relaxing experiences. With mass tourism on the rise post-pandemic, luxury is now defined by unique and personalised offerings. Brands can differentiate themselves by focusing on personalisation, nature-based experiences, and new, less-explored destinations.
- Tying trips to rare natural phenomena or unique events can further enhance appeal and drive spending. By delivering not just great holidays but unforgettable memories, brands can strengthen their connection with consumers and stand out in the competitive luxury travel market.
Key Issues Covered in the Report:
- Profile of the luxury holidaymaker, including changes in spending and holiday length over time
- Luxury travel destinations, including analysis of spend on different destinations and opportunities in close-to-home travel
- Desired products and services within luxury holidays, including suggestions for bundling
- Analysis of the meaning of luxury for consumers, including for family travel
- Awareness of selected holiday brands and how willing consumers are to book a luxury holiday with each brand
Report Scope
There is no industry-wide agreement on the definition of the luxury holidaymaker. Mintel has, therefore, approached the luxury travel segment from three different angles. Consumers were asked how much they think they will spend on their most expensive holiday in the next three years and the duration of this holiday. In addition to holiday expenditure and duration, Mintel asked whether they will likely stay in a five-star or above rated accommodation, which is seen by many brands as a core element of luxury travel. For further detail, see Luxury traveller breakdowns.
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EXECUTIVE SUMMARY
- What you need to know
- Outlook for luxury travel
- Opportunities
- Look into rising destinations to offer a unique experience
- Families want familiarity, and fun
- Provide true value for savvy luxury travellers
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THE MARKET
- Affluent consumers report improved financial wellbeing…
- Graph 1: how consumers feel about their household finances compare to a year ago, by annual household income, 2025
- …and 30% plan to spend more on holidays
- Graph 2: spending expectations for 2025 compared to 2024 – holidays, 2025
- Luxury consumers choose to book later
- The luxury sector is resilient despite broader pressures
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THE CONSUMER
- Introduction to the luxury consumer
- Mintel’s luxury traveller breakdowns
- Growth in the luxury segment is focused on big-ticket spenders
- Graph 3: luxury traveller segments, 2024-25
- Consumers are investing more in premium holiday experiences
- Luxury travellers prioritise quality over quantity
- Graph 4: length of holiday, by luxury travellers, 2024-25
- Luxury consumer profiles at a glance
- Holiday destinations
- Latin America emerges as a luxury destination
- Graph 5: most considered holiday destinations for the most expensive holiday planned in the next three years, by luxury travellers, 2024-25
- Five-star big-ticket consumers want to go further
- Reach top-spending audiences with long-distance travel
- Graph 6: spend on most expensive holiday (net), by considered luxury destination, 2025
- Unlock opportunities in close-to-home travel
- Holiday types
- Beach and cruise are top choices for luxury travellers
- Tap into demand for safaris and cruises
- Respond to new interest in guided tours
- Graph 7: share of consumers considering taking a guided touring holiday for their most expensive holiday, by luxury traveller segments, 2025
- Encourage active holidays among younger demographics and families
- Products and services within luxury holidays
- Sustainability is not a top priority for the luxury consumer
- Focus on key products/services for luxury travellers
- Propose bundles based on the holiday type…
- Graph 8: select activities consumers are likely to do on holiday, by type of luxury holiday, 2025
- …or the destination
- Meaning of luxury
- Luxury means exclusivity
- Five-star consumers are looking for relaxation and prestige
- Graph 9: meaning of luxury, by select luxury traveller segments, 2025
- Familiar is better for luxury family holidays
- Graph 10: any children, by select meaning of luxury, 2025
- Brand awareness and consideration
- Premium luxury is thriving
- Graph 11: brand awareness and consideration, 2025
- High earners favour value over brand positioning
- Consumers earning £100K+ pay out for small luxuries and lifelong memories
- Experiences are the new battleground for luxury spend
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INNOVATION AND MARKETING
- Luxury hotels expand their cruise offerings
- Abercrombie & Kent expands into the Nordics with Borealis DMC acquisition
- BA introduces new premium experiences
- Luxury fashion collaborations add a high-class touch to the hotel experience
- Virgin Limited Edition launches a curated ultra-luxe collection
- TUI BLUE makes waves on TikTok
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APPENDIX
- Market definition
- Abbreviations
- Snoop SpendMapper methodology
- Consumer research questions
- Consumer research methodology
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