Description

“The recovery of the luxury travel sector has continued undeterred by inflation, and with more destinations becoming available to travelers, the outlook looks positive. Luxury travel across income levels continues to grow, giving luxury providers a broader audience to appeal to, with a different set of wants and expectations than typical affluent/high net worth travelers.”
– Mike Gallinari, Senior Travel & Leisure Analyst

This Report looks at the following areas

  • The luxury travel habits and intent of both the general population and affluent/high-net-worth consumers.
  • The attitudes and demographics of luxury travel segments within the general population.
  • What luxury travelers look for in a destination and in vacations in general.
  • The role luxury travel advisors are seen to have and could have.
  • Attitudes about luxury travel and trust in providers.

Table of Contents

  1. Overview

    • What you need to know
      • This Report looks at the following areas
        • Definition
          • Market context
          • Executive Summary

              • Top Takeaways
                • Consumer trends
                  • Luxury travel continued to grow during the pandemic
                    • Figure 1: Luxury travel in the past five years, Genpop vs AHNW, 2021-22
                  • Social media works for reaching the Genpop, but AHNWs need more pointed targeting
                    • Genpop’s desire for travel outpaces willingness to save up for premiumization
                      • Figure 2: Attitudes toward luxury travel, Genpop vs AHNW, 2022
                    • Competitive strategies
                      • Auctions expand premium flight availability
                        • Cruises get more specialized in their targeting
                          • Advice as a perk
                            • Market predictions
                              • Luxury travel intent in 2023 remains steady, despite pricing pressures
                                • Figure 3: Luxury travel intent, Genpop vs AHNW, 2021-22
                                • Figure 4: Luxury travel outlook, 2023-28
                              • Opportunities
                                • Strength in (party) numbers can make luxury more accessible
                                  • Advisors need to make their skills more widely known
                                    • Tout sustainability
                                    • Luxury Travelers by the Numbers

                                      • Luxury travel has accelerated with travel’s broader recovery
                                        • Figure 5: Luxury travel experiences, Genpop, 2021-22
                                        • Figure 6: Timing of luxury travel experiences, Genpop, 2021-22
                                      • Travel among the affluent poised to recover from the pandemic
                                        • Figure 7: Luxury travel experiences, AHNW, 2021-22
                                        • Figure 8: Timing of luxury travel experiences, AHNW, 2021-22
                                      • Brands need to spark more interest among wealthier consumers
                                        • Figure 9: Luxury travel intent, Genpop vs AHNW, 2021-22
                                      • The $75K-$100K household income bracket more open to adding luxury
                                        • Figure 10: Luxury travel intent demographics, Genpop, 2022
                                    • Market Drivers

                                      • Millionaires are on the rise globally
                                        • Inflation is declining, but remains a stubborn hurdle
                                          • Figure 11: Effect of inflation on travel plans, Genpop vs AHNW, 2022
                                          • Figure 12: Annual and monthly changes in Consumer Price Index, 2007-2022
                                        • Travel employment improves, but luxury providers can still stand out
                                          • International travel continues to improve
                                          • Competitive Strategies and Market Opportunities

                                            • Bidboost could make premium air travel more accessible
                                              • Crystal rebrands and takes a more individualized approach
                                                • Explora Journeys looks to cultivate the next cruise audience
                                                  • Odyssey adds travel advisor services to its loyalty structure
                                                  • Luxury Travelers – Fast Facts

                                                    • What kinds of luxury travelers are there?
                                                      • What inspires travelers to choose a destination?
                                                        • What kinds of vacations are travelers drawn to?
                                                          • What’s the goal of luxury travel?
                                                            • What role do advisors play?
                                                              • Are luxury trips worth saving for?
                                                                • Travelers have questioned travel brands’ competence. Does that worry carry over into luxury?
                                                                  • Is sharing luxury travel experiences with others important?
                                                                    • Have sustainability concerns reached the luxury sphere yet?
                                                                    • Luxury Travel Segments

                                                                          • Figure 13: Luxury travel segments – Genpop, 2022
                                                                        • Factors
                                                                          • Luxury travel segments
                                                                            • Extravagantly Engaged (42%)
                                                                              • Figure 14: Extravagantly Engaged segment profile, index to all, 2022
                                                                            • Occasional Opulents (30%)
                                                                              • Figure 15: Occasional Opulents segment profile, index to all, 2022
                                                                            • Baroque Bystanders (29%)
                                                                              • Figure 16: Baroque Bystanders segment profile, index to all, 2022
                                                                          • Luxury Destination Inspiration

                                                                            • Presentation matters for the Genpop, but AHNWs need more convincing
                                                                              • Figure 17: Luxury destination inspiration sources, Genpop vs AHNW, 2022
                                                                            • Destination marketing requires a balanced approach
                                                                              • Figure 18: Luxury destination inspiration sources, by luxury travel segment, 2022
                                                                            • Social media should be used to build a relationship
                                                                              • Figure 19: Luxury destination inspiration sources, by generation, 2022
                                                                          • Luxury Destinations

                                                                            • Wealthy travelers seek new to them, Genpop looks for improvement
                                                                              • Figure 20: Luxury travel destinations, Genpop vs AHNW, 2022
                                                                            • Engaged need reassurance in far-flung locales, Bystanders want tradition
                                                                              • Figure 21: Luxury travel destinations, Genpop vs AHNW, 2022
                                                                          • Luxury Goals

                                                                            • Primary goals of luxury trips are different between populations
                                                                              • Figure 22: Luxury travel goals, Genpop vs AHNW, 2022
                                                                            • Extravagantly Engaged have more varied goals for luxury travel
                                                                              • Figure 23: Luxury travel goals, by luxury travel segment, 2022
                                                                            • Make wellness an access point to attract luxury travelers
                                                                              • Figure 24: Luxury travel goals, by generation, 2022
                                                                          • Luxury Travel Advisors

                                                                            • Advisor expertise is an asset that needs to be touted
                                                                              • Figure 25: Travel advisor demands, Genpop vs AHNW, 2022
                                                                            • Different net-worth groups have different demands for advisors
                                                                              • While inflation remains high, advisors are seen as mere booking engines by the Genpop
                                                                                • Figure 26: TURF Analysis – Advisors for luxury travel, Genpop, 2023
                                                                              • Upgraded lodging is important to well-off travelers
                                                                                • Figure 27: TURF Analysis – Advisors for luxury travel, AHNW, 2023
                                                                              • Trust is a web
                                                                                • Figure 28: Travel advisor demands, by luxury travel segments, 2022
                                                                            • Attitudes toward Luxury Travel

                                                                              • Genpop would rather travel now than travel better
                                                                                • Figure 29: Attitudes toward luxury travel, Genpop vs AHNW, 2022
                                                                              • The Engaged’s all-or-nothing attitude means premium providers lose out
                                                                                • Figure 30: Attitudes toward luxury travel, by luxury travel segment, 2022
                                                                            • Attitudes toward Luxury Travel Providers

                                                                              • Luxury advisors need to improve outreach with AHNWs
                                                                                • Figure 31: Attitudes toward trust, Genpop vs AHNW, 2022
                                                                              • Advisors can make Bystanders feel like experts
                                                                                • Figure 32: Attitudes toward trust, by luxury travel segment, 2022
                                                                            • Attitudes toward the Nature of Travel

                                                                              • Group luxury can attract more Genpop travelers
                                                                                • Figure 33: Attitudes toward the nature of travel, Genpop vs AHNW, 2022
                                                                              • Facilitate shareable experiences for the Extravagantly Engaged
                                                                                • Figure 34: Attitudes toward the nature of travel, by luxury travel segment, 2022
                                                                            • Attitudes toward Sustainability

                                                                              • Sustainability matters more to everyone
                                                                                • Figure 35: Attitudes toward sustainability, Genpop vs AHNW, 2022
                                                                              • Sustainability is decidedly the future of luxury travel
                                                                                • Figure 36: Attitudes toward sustainability, by luxury travel segment, 2022
                                                                            • Appendix – Data Sources and Abbreviations

                                                                              • Consumer survey data
                                                                                • Abbreviations and terms
                                                                                  • Abbreviations
                                                                                  • Appendix – The Consumer

                                                                                    • TURF Methodology
                                                                                        • Figure 37: TURF Analysis – Trip planning elements desired from travel advisor/agent, 2022
                                                                                        • Figure 38: TURF Analysis – Trip planning elements desired from travel advisor/agent, by AHNW, 2022
                                                                                        • Figure 39: AHNW demographics, 2022

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