UK Luxury Travel Market Report 2022
£ 2,195 (Excl.Tax)
Description
Unlock the potential of the UK luxury travel market with our comprehensive report. Our analysis examines consumer attitudes towards luxury travel and vacation upgrades, luxury specialists’ performance and launch activity, and the effects of the cost of living crisis on the sector. You’ll gain insight into the UK luxury travel market size, as well as market projections, segmentation, and the latest trends.
Get to Know the UK Luxury Travel Market – Overview and Size
Although there has been a significant year-on-year increase in holiday bookings in 2022, our luxury travel market research reveals that the cost of living crisis has impacted consumer confidence among luxury travellers. This is preventing the UK luxury travel market from achieving its full growth potential. More than half said they will take fewer holidays or less expensive holidays than they would like in the 12 months following August 2022.
As worries about high inflation dissipate, those who have built up supplemental savings during the pandemic will become more comfortable using these funds to treat themselves to a long-awaited holiday.
Uncover the Latest UK Luxury Travel Market Trends
Authenticity is an important aspect of a holiday for luxury travellers, with three-quarters of them saying they want to immerse themselves in local life during their trip. Our industry experts have identified this as a key trend in the UK luxury travel market and emphasised this as an opportunity for travel companies to strike a balance between luxury and authenticity.
When asked what a luxury holiday means to UK adults planning to take a luxury holiday in the three years, ‘relaxing’ was the most common response. Luxury travellers naturally expect more than the average holidaymaker when it comes to relaxation. This suggests that to appeal to luxury travellers, providers need to ensure they are offering something truly original that has a premium feel.
- UK luxury travel market opportunity: 87% of UK adults plan to take a holiday in the 12 months following October 2022, which is above pre-COVID levels.
- UK luxury travel market trends: 72% of luxury travellers say they want to immerse themselves in local life during their trip.
- UK luxury travel market challenges: 54% of luxury consumers state that the increased cost of living means that they will take less expensive holidays in the next 12 months.
- UK luxury travel consumer attitudes: 66% of luxury travellers define a luxury trip as ‘relaxing’.
Unlock Future Opportunities in the UK Luxury Travel Market
As environmental, social and governmental issues continue to grow in importance, it is likely that many luxury travel companies will face increased scrutiny from various types of organisations, regulators and consumers. While there are more efforts being made to make luxury travel more sustainable, delivering an ultra-luxury experience via a private jet or yacht comes with an environmental cost. Offsetting carbon emissions can help but companies need to find more tangible ways to show how they are helping travellers minimise their impact on the environment.
To discover more about the UK Luxury Travel Market Report 2022, read our UK Holiday Review Market Report 2023, or take a look at our other Travel Market Research.
Quickly Understand
- How the cost of living crisis is impacting the luxury travel market.
- The performance of top luxury specialists and new launch activity and innovation.
- What destinations and holiday types are being considered.
- What luxury travel means to consumers.
- Interest in holiday upgrades.
- Attitudinal and behavioural similarities and differences between luxury and non-luxury travellers.
Leading UK Luxury Travel 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 Travel Sector
This report, written by George Zaborowski, a leading analyst in the travel sector, delivers in-depth commentary and analysis to highlight current trends in the UK luxury travel market and add expert context to the numbers.
The UK luxury travel market has typically outperformed the overall travel market during periods of economic difficulty, and this is likely to be true again during the current period of economic malaise. Over half of luxury travellers are interested in upgrading elements of their holiday in the 12 months following August 2022, while a third say they have more money to spend on holidays than they did prior to the pandemic.
That said, high inflation and rising interest rates are impacting luxury traveller confidence in the near term and could prevent the luxury sector from reaching its full potential in 2023. Due to the increased cost of living, just over half of luxury travellers say they will have to take less expensive holidays, or fewer holidays, than they would have liked in the 12 months following August 2022.”
George Zaborowski
Senior Analyst
Table of Contents
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Overview
- Key issues covered in this Report
- Products covered in this Report
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Executive Summary
- The five-year outlook for luxury travel
- Figure 1: Category outlook for luxury travel, 2022-27
- The market
- Removal of travel bans reinvigorating interest in international tourism
- Booking intentions among the affluent are still below pre-pandemic levels
- Rising interest rates impacting wealthier households
- Pandemic savings could help to soften the blow
- Key target market for luxury travel continues to expand
- Companies and brands
- 2022 looking more promising after a difficult 2021 for luxury travel specialists
- High-end hotel brands continue to expand into luxury cruises
- More environmentally responsible travel options being made available
- Pelorus now accepting cryptocurrency payments
- The consumer
- 35% of UK adults can be categorised as luxury travellers
- A fifth of UK adults are big-ticket spenders…
- …while just under a tenth are five-star big-ticket spenders
- Figure 2: Luxury traveller segments, 2022
- Luxury travellers keen to travel beyond Europe
- Figure 3: Most considered holiday destinations for the most expensive holiday planned in the next three years, 2022
- Beach holidays and city breaks remain the most popular types of holidays
- Figure 4: Most considered holiday types for the most expensive holiday planned in the next three years, 2022
- Luxury holidays most commonly associated with relaxation
- Figure 5: Meaning of a luxury holiday, by luxury traveller segments, 2022
- Cost of living crisis dulls the positive impact of pandemic savings
- Figure 6: Attitudes towards holiday upgrades and the impact of the increased cost of living, 2022
- Eco-friendly activities not generally viewed as a luxury but should still be standard
- Figure 7: Products and services consumers would consider when taking their most expensive holiday in the next three years, 2022
- Most luxury travellers want to fully experience local life…
- …and do more to limit their impact on the environment
- Figure 8: Attitudes towards holidays, 2022
- Luxury travellers prefer to rely on specialists to book their holidays
- The five-year outlook for luxury travel
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Issues and Insights
- Luxury travel sector in recovery mode but cost of living crisis will prevent it from reaching its full potential in 2023
- Eco-friendliness not widely viewed as part of a premium experience but still vital to success
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Market Background
- The five-year outlook for the luxury travel market
- Figure 9: Category outlook for luxury travel, 2022-27
- Removal of travel bans boosts interest in short- and long-haul destinations
- Weaker Pound can help support demand for UK-based holidays
- Figure 10: Past holidaying vs holidaying intentions, 2019 vs 2021 vs 2022
- Booking levels nearly back to pre-pandemic levels in 2022
- Figure 11: Holiday bookings in the last three months, 2019 vs 2021 vs 2022
- Booking intentions among the affluent remain below pre-pandemic levels
- Figure 12: Plans to book a holiday in the next three months, 2019 vs 2021 vs 2022
- The five-year outlook for the luxury travel market
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Market Drivers
- Inflation is the key concern for consumers and brands
- Rising interest rates impacting middle- and higher-income households
- Half of higher earners expect to cut back on spending
- Figure 13: Expected change in behaviour in reaction to rising prices, by household income, 2022
- Build-up in household deposits could help to soften the blow
- Figure 14: Total outstanding deposits from households, 2016-22
- Population of top earners expands by 3.5% in 2020-21
- Figure 15: Average annual household income after tax and benefits, by quintile, 2008/09-2020/21
- Number of HNWIs in the UK grew by 6.3% in 2021
- Figure 16: Top 10 nations for number of HNWIs*, 2017-21
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Luxury Travel Specialists
- 2021 another difficult year for leading luxury holiday specialists
- 2022 more promising, but new challenges arise with cost of living crisis
- Figure 17: Leading luxury holiday specialist operators, by turnover, 2017-21
- Kuoni reports increased demand for long-haul multi-centre trips
- Abercrombie & Kent acquires luxury cruise ships and the Crystal Cruises brand
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Launch Activity and Innovation
- Adventure holidays that combine excitement and luxury
- Abercrombie & Kent launches new high-end experience for the adventurous
- High-end hotel brands continue expansion into luxury cruises
- The Ritz-Carlton Yacht Collection’s first ship sets sail in October 2022
- Four Seasons to launch an ultra-luxury cruise line
- New luxury resorts opening in Dubai, China and Zimbabwe
- ‘Atlantis The Royal’ offers a new luxury resort experience in Dubai
- Four Seasons building a private island resort in Suzhou
- Six Senses to launch new eco-resort in Zimbabwe in 2025
- Audley Travel further enhances its responsible tourism programme
- Pelorus begins accepting cryptocurrency payments
- Bespoke brochures from Kuoni
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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 18: Luxury traveller segments, 2022
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Holiday Destinations
- Luxury travellers eager to travel beyond Europe…
- …but there remains plenty of interest in short-haul destinations
- Figure 19: Most considered holiday destinations for the most expensive holiday planned in the next three years, 2022
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Holiday Types
- Beach holidays and city breaks still the most popular types of holidays
- Figure 20: Most considered holiday types for the most expensive holiday planned in the next three years, 2022
- Offering shorter cruises can boost demand among younger luxury travellers
- Figure 21: Most considered holiday types for the most expensive holiday planned in the next three years, by luxury travellers’ age, 2022
- Beach holidays and city breaks still the most popular types of holidays
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Meaning of a Luxury Holiday
- Luxury holidays most commonly associated with relaxation
- New experiences, uniqueness, and prestige key for five-star big-ticket spenders
- Figure 22: Meaning of a luxury holiday, by luxury traveller segment, 2022
- Sustainability and being active not widely linked with luxury holidays…
- …but these are more likely to be emphasised by younger adults
- Figure 23: Meaning of a luxury holiday, by luxury traveller segment, by luxury travellers’ age, 2022
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Holiday Upgrades
- Cost of living crisis dampens the positive impact of pandemic savings
- Figure 24: Attitudes towards holiday upgrades and the impact of the increased cost of living, 2022
- Younger couples show highest level of interest in holiday upgrades
- Environmentally friendly activities not widely viewed as a luxury…
- …but still should be integrated into the overall luxury experience
- Figure 25: Products and services consumers would consider when taking their most expensive holiday in the next three years, 2022
- Cost of living crisis dampens the positive impact of pandemic savings
-
Attitudes towards Holidays
- Most luxury travellers want to immerse themselves in local life…
- …and do more to minimise their impact on the environment
- Figure 26: Attitudes towards holidays, 2022
- Luxury travellers prefer to turn to specialists to book their holidays
- Airbnb is unlikely to be the preferred choice for luxury travellers…
- …but finding unique luxury properties on the platform is becoming easier
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Luxury Traveller Segments
- Mintel’s luxury traveller segments
- Figure 27: Mintel’s luxury traveller segments, 2022
- Luxury travellers: younger and older age groups are equally represented
- Big-ticket spenders
- Destination
- Type of holiday
- Type of experiences
- Five-star big-ticket spenders
- Destination
- Type of holiday
- Type of experiences
- Profile
- Figure 28: Demographic profile of luxury traveller segments, 2022*
- Mintel’s luxury traveller segments
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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, 2022
- Figure 30: Duration of the most expensive holiday planned in the next three years, 2022
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- Figure 31: Products and services consumers would consider when taking their most expensive holiday in the next three years, 2022
- Volume of Mintel’s luxury traveller segments
- Mintel’s approach to defining the luxury traveller
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Appendix – Data Sources, Abbreviations and Supporting Information
- Abbreviations
- Consumer research methodology
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