2021
9
UK Luxury Travel Market Report 2021
2022-01-08T03:20:38+00:00
OX1050553
2195
146679
[{"name":"Holidays and Travel","url":"https:\/\/store.mintel.com\/industries\/holidays-travel"}]
Report
en_GB
“Although relaxation remains a key motivator for luxury travellers, many are looking to get more out of their most expensive upcoming holiday, with adventure, celebrating something special or personal growth/development…

UK Luxury Travel Market Report 2021

£ 2,195 (Excl.Tax)

Description

The UK Luxury Travel report identifies consumer attitudes towards luxury travel, destinations, holidaying motivations and interest in holiday upgrades in the UK. This market report covers the market size, market forecast, market segmentation and industry trends for the Luxury Travel market in the UK.

Current Market Landscape

About two thirds of luxury travellers would like to pack as many activities/experiences as possible into a holiday, however, most of this group would also like to do more to minimise their impact on the environment whilst travelling. Brands will have to do their upmost to help travellers find ways to limit or offset their impact, as sustainability has become a bigger priority for consumers.

  • In November 2021, 32% of UK adults said that the environment has become a higher priority since the COVID-19 outbreak.
  • 75% of luxury travellers would like to do less environmental impact when travelling.
  • 34% of UK adults with household income of £75,000 and above stated that none of the shown cost-of-living changes will have an impact on their household’s financial situation compared to 21% of all UK adults.

Luxury travellers are more likely to have built up lockdown savings, which places them in a better position to make up for lost travel opportunities, for example through upgrading elements of their holiday to more private experiences. COVID-19 has also acted as a wake-up call to make long-standing travel dreams come true, which will see more of this segment take a once-in-a-lifetime holiday once confidence in overseas holidays has returned.

Future Market Trends in Luxury Travel 

Until the virus is under control globally, the risk of potential mutations will continue to pose a threat to the recovery of overseas travel in particular. As such, developing itineraries for holidays in the UK and in Europe, where it is easier for travellers to return home at short notice if required, will remain relevant for luxury tour operators in 2022 and potentially beyond.

Although relaxation remains a key motivator for luxury travellers, many are looking to get more out of their most expensive upcoming holiday, with adventure, celebrating something special or personal growth/development being strong motivations to travel. For many luxury travellers, it is no longer enough to have a story to tell when they return from their holiday. Instead, they are looking for enriching or transformative holiday experiences.

Read on to discover more details or take a look at all of our UK Holidays and Travel market research.

Quickly understand

  • The impact of COVID-19 on the luxury travel market.
  • Considered destinations and holiday types.
  • Holidaying motivations.
  • Interest in holiday upgrades.
  • Behavioural differences between luxury travellers and non-luxury travellers.

Covered in this report

Brands: Kuoni, Fleetway Travel, Kenwood Trabel, The Turquoise Holiday Company, Audley Travel, Elegant Resorts, Abercombie & Kent, Scott Dunn, Imagine Travel, The Ultimate Travel Company, Bliss Topco, Destinology.

Expert analysis from a specialist in the field

This report, written by Marloes de Vries, a leading analyst in the Travel sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Although relaxation remains a key motivator for luxury travellers, many are looking to get more out of their most expensive upcoming holiday, with adventure, celebrating something special or personal growth/development being strong motivations to travel. As such, brands play an important role in connecting travellers with enriching or transformative holiday experiences that offer something more than just relaxation.
Marloes de Vries
Associate Director – Travel

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • COVID-19: market context
    • Economic and other assumptions
    • Products covered in this Report
  2. Executive Summary

    • Impact of COVID-19 on luxury travel
      • Figure 1: Short-, medium- and long-term impact of COVID-19 on luxury travel, 2021
    • The market
    • Booking intentions expected to drop as a result of tighter travel restrictions
    • Risk of harmful mutations remains due to lack of vaccine equity
    • Roughly a third of top earners are unconcerned by rising living costs
    • UK’s volume of HNWI declined in 2020, but opportunity to sell higher-value holidays remains
    • New Air Passenger Duty band rate introduced for ultra-long-haul flights
    • The environment has become a bigger consumer priority
    • Companies and brands
    • Leading luxury travel specialists slightly outperform the total overseas travel market
    • White Desert launches second camp in Antarctica to appeal to the adventurous traveller
    • Space travel agency opened in London
    • Fairmont hotel is focussed on personalised wellbeing
    • A new floating resort is set to open in Dubai in 2023
    • The consumer
    • Mintel’s approach to defining the luxury traveller
    • Volume of the luxury traveller segment
    • Two additional higher-end segments within the luxury travel market: big-ticket spenders and five-star big-ticket spenders
      • Figure 2: Luxury traveller segments, 2021
    • Long-haul destinations continue to appeal, but uncertainty remains
      • Figure 3: Most considered holiday destinations for the most expensive holiday planned in the next three years, 2021
    • Beach resort holidays and city breaks will remain the leading holiday types
    • Authenticity can help cruise operators to strengthen their hold on the luxury segment
      • Figure 4: Considered holiday types for the most expensive holiday planned in the next three years, 2021
    • COVID-19 has acted as a wake-up call to make long-standing travel dreams come true
      • Figure 5: Most important reasons to take the most expensive holiday planned in the next three years, 2021
    • Pandemic savings hold huge potential for luxury travel experiences
    • Challenge to change the non-luxury image of environmentally-friendly activities
      • Figure 6: Products and services consumers would consider when taking their most expensive holiday in the next three years, 2021
    • Strong desire for experience packed holidays
      • Figure 7: Attitudes towards holidays, 2021
    • Big-ticket spenders opt for more active forms of travel
    • Five-star big-ticket spenders; smallest in size, but biggest in value
  3. Issues and Insights

    • COVID-19 boosts potential of outdoor adventures
    • Challenge to change the non-luxury image of environmentally-friendly activities
    • Travel agents can help drive change in behaviour
    • Clear communication about environmental practices will be important
  4. Market Background

    • Luxury market will benefit from release of pandemic savings
      • Figure 8: Short-, medium- and long-term impact of COVID-19 on luxury travel, 2021
    • Strong wanderlust persists
    • Long-haul travel will likely recover at a slower pace
      • Figure 9: Holidaying intentions, 2019 vs 2021
  5. Market Drivers

    • Booking levels continued to creep closer to pre-pandemic levels…
      • Figure 10: Holiday bookings in the last three months, 2019 vs 2021
    • …but booking intentions expected to drop as a result of tighter travel restrictions
      • Figure 11: Plans to book a holiday in the next three months, 2019 vs 2021
    • The UK accelerates and expands its vaccination programme…
    • …but lack of vaccine equity increases risk of harmful mutations, reiterates WHO
    • Income of top earners has been better protected during the pandemic
      • Figure 12: Average annual household income after tax and benefits, by quintile, 2008/09-2019/20
    • Roughly a third of top earners are unconcerned by rising living costs
      • Figure 13: Consumer concerns over cost-of-living changes, 2021
    • UK’s volume of HNWI declined in 2020, but opportunity to sell higher-value holidays remains
      • Figure 14: Top 10 nations for number of HNWIs*, 2016-20
    • New Air Passenger Duty band rate introduced for ultra-long-haul flights
    • The environment has become a bigger consumer priority
      • Figure 15: Changes in consumer priorities, 2020-21
  6. Regulatory and Legislative Changes

    • Rapid spread of Omicron led to red list additions being withdrawn
    • Testing and self-isolation measures tightened for arrivals into the UK
    • Changing entry requirements, including vaccine validity, add to the complexity of international travel
  7. Luxury Travel Specialists

    • Leading luxury travel specialists slightly outperform the total overseas travel market
      • Figure 16: Leading luxury holiday specialist operators, by turnover, 2016-20
    • Kuoni steps up its short-haul programme to strengthen position in special occasion travel
    • Audley Travel adds options away from busy tourist spots
    • Abercrombie & Kent taps into post-pandemic demand for bucket list trips
  8. Launch Activity and Innovation

    • Exclusive experiences for the adventurous luxury traveller
    • White Desert launches second camp in Antarctica
    • Space travel agency opened in London
    • New properties will open with wellbeing in mind
    • Fairmont hotel is focussed on personalised wellbeing
    • New Six Senses property to open in 2025
    • Luxury innovations which consider the environment
    • The launch of a new on-the-move safari camp
    • The Orient Express train is back on track
    • Silversea will launch luxury cruise ship with zero local emissions at port
    • Luxury projects under construction in the Middle East
    • The Red Sea Project develops a new destination for luxury travellers in Saudi Arabia
    • A new floating resort is set to open in Dubai in 2023
  9. Introduction to the Luxury Traveller

    • Mintel’s approach to defining the luxury traveller
    • Volume of the luxury traveller segment
    • Two additional higher-end segments within the luxury travel market: big-ticket spenders and five-star big-ticket spenders
      • Figure 17: Luxury traveller segments, 2021
  10. Holiday Destinations

    • Long-haul destinations continue to appeal, but uncertainty remains
    • Travel experts play a more important role amid ever-changing entry requirements
      • Figure 18: Most considered holiday destinations for the most expensive holiday planned in the next three years, 2021
  11. Holiday Types

    • Beach resort holidays and city breaks will remain the leading holiday types
    • Authenticity can help cruise operators to strengthen their hold on the luxury segment
      • Figure 19: Considered holiday types for the most expensive holiday planned in the next three years, 2021
    • Physical activity holidays enable travellers to go to extremes
      • Figure 20: Considered holiday types for the most expensive holiday planned in the next three years, by luxury travellers’ age, 2021
  12. Holiday Motivations

    • Luxury travellers look for experiences beyond relaxation
      • Figure 21: Most important reasons to take the most expensive holiday planned in the next three years, 2021
    • COVID-19 has acted as a wake-up call to make long-standing travel dreams come true
      • Figure 22: Most important reasons to take the most expensive holiday planned in the next three years, by luxury travellers’ age, 2021
  13. Holiday Upgrades

    • Pandemic savings hold huge potential for luxury travel experiences
      • Figure 23: Attitudes towards savings and holiday upgrades, 2021
    • Urban Millennial parents crave holiday upgrades
    • Challenge to change the non-luxury image of environmentally-friendly activities
      • Figure 24: Products and services consumers would consider when taking their most expensive holiday in the next three years, 2021
  14. Attitudes towards Holidays

    • Over half of luxury travellers believe Airbnb can provide a luxury experience
    • Strong desire for experience packed holidays…
    • …underlines the green challenge in luxury travel
      • Figure 25: Attitudes towards holidays, 2021
    • Space tourism looks set to take off in 2022
      • Figure 26: Interest in taking a space flight, 2021
  15. Luxury Traveller Segments

      • Figure 27: Mintel’s luxury traveller segments, 2021
    • Luxury travellers: younger audiences are well represented
    • Big-ticket spenders opt for more active forms of travel
    • Destination
    • Type of holiday
    • Type of experiences
    • Five-star big-ticket spenders; smallest in size, but biggest in value
    • Destination
    • Type of holiday
    • Type of experiences
    • Profile
      • Figure 28: Demographic profile of luxury traveller segments, 2021*
  16. Appendix – Defining the Luxury Traveller

    • Mintel’s approach to defining the luxury traveller
      • Figure 29: Amount planning to spend on the most expensive holiday in the next three years, 2021
      • Figure 30: Duration of the most expensive holiday planned in the next three years, 2021
      • Figure 31: Products and services consumers would consider when taking their most expensive holiday in the next three years, 2021
    • Volume of Mintel’s luxury traveller segments
  17. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
    • CHAID methodology
      • Figure 32: Interest in upgrading holiday elements in the next 12 months – CHAID analysis, 2021

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

Below is a sample report, understand what you are buying.

Click to show report
2024 Sample Consumer Cover

Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Our reports are available to download in PDF and PPT formats.

Trusted by companies. Big and small.

Want to speak to us directly?

Contact us with your enquiry and our expert global team can help.

Get in touch