When it comes to luxury travel, it's crucial to know what people are looking for and how their preferences are evolving. Even with economic struggles facing many nations, it's expected that the desire for luxury travel will only continue to grow over the next few years.
It's interesting to see how luxury travel is evolving. Some travelers are all about exploring new places and don't mind a few bumps in the road, while others prefer to rediscover classic destinations. The key is to meet the specific needs of today's traveler and keep up with how those needs are changing.
So, what does this mean for travel advisors? It’s all about tailoring trips to each individual traveler, which is no surprise in today's travel industry. But when it comes to luxury travel, there are a few key trends emerging.
First, clients are looking to really immerse themselves in a destination, to truly understand what makes it unique. Second, there's a growing focus on finding those hidden gems, whether that's off-the-beaten-path neighborhoods or unique activities. GlobeTrender has even coined a term for these kinds of destinations - "Gamma Destinations."
So, with this in mind, we explore some of the key overriding trends which are important for travel advisors to consider, from the re-emergence of China as a main outbound travel market to the rising influence of Generation Alpha!
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We’ve previously highlighted slow travel as one of the key travel trends overtaking the industry in our exploration of how to cater for slow travel, and its popularity amongst today’s traveler isn’t going anywhere. So this means that, as travel advisors, you can keep selling those luxurious slow travel experiences to your clients and keep them coming back for more!
When it comes to luxury travel, it's all about getting an exclusive look at the destination of choice. That's why conscious luxury travel and slow travel have a lot in common. If we take a closer look at just two of hierarchy of needs of the luxury traveler, it’s clear how slow travel, as type of experience, could help you meet the needs of your luxury traveler more easily:
Slow travel can be determined by any instance where a traveler actively seeks out impactful, meaningful experiences in their destination of choice, and so the benefit of using this travel style to meet these luxury needs is clear.
A great way for long-haul segments to get into the heart of their destination, would be by exploring the authentic cuisine there, particularly in countries where food forms a large part of the culture. Ensuring that local experts are involved in any experiences or tours is critical too, especially considering the shift in preference for authenticity over what luxury travel provider Carrier calls ‘pan-global luxury.’
According to a recent study, Barbados, the Maldives, the USA, Greece, UAE, Antigua, South Africa, Italy, Spain, and Kenya are all top-performing or desirable locations for 2023 and beyond. So, if you're thinking about where to send your high-end travelers for their slow trips, these could be some valuable starting points!
Now more than ever, travelers are indicating with their spending behaviors how they want to travel and what experiences they want to have. A prerequisite for these is that these experiences must benefit to the local communities or environments of a travelers’ destination.
This is where having a vast portfolio of activities and experiences is so essential, in order to offer your clients bespoke opportunities to get to the heart of their destination of choice. Doing so requires attention to detail, which is a hallmark of luxury travel, after all!
This vast network of local travel experts, activities and hotels is something that we offer at Bedsonline! With thousands of properties and activities in 170+ countries worldwide, our portfolio is the only resource you need to boost your bookings and meet your clients’ demands.
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A recent study from Globetrender highlighted this trend, revealing that these families are not afraid to spend big and travel far. The study also predicted a substantial hike in family trips, estimating an increase of 185% between 2021 and 2022, which we anticipate will be long-lasting. As we look ahead to the next few years, it is safe to assume that luxury travel will see a sharp and sustained increase, particularly among wealthy families.
And as a passive but young demographic, Gen Alpha is reliant on their Millennial parents to spend for them, which means:
It's essential to recognize the changing face of the modern family and adapt your travel offerings accordingly. For instance, in the UK, many families are led by single parents, around 90% of are women. So, it's vital to question your preconceived notions about family travel and make sure your offerings meet the diverse needs of today's travelers. Embracing these changes is key to staying relevant in the travel industry and providing memorable experiences for all. However, what’s clear is that there is no better time to cater for the elite and their younger generations!
Luckily, the array of filters on our Booking Engine mean that as travel advisors you can quickly refine your searches to accommodate specific activities and hotel requirements once a client has chosen their destination, including 'family hotel' for accommodation and 'families' and 'small group' filters for activities. This allows you to not only streamline the booking process but also more easily accommodate to your clients’ bespoke preferences.
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Travel advisors should not overlook the potential for growth that premium travelers present. Although a slightly different segment to high-end travelers, the motivations, needs and travel styles of the premium segment are similar. It is important to recognize the opportunity and embrace it! Travel analytics company Forward Keys also identified premium travel as a trend to keep an eye on, with huge potential for travel advisors to tap into!
Recent insights suggest that the premium travel segment is recovering much faster than the economy segment in relation to 2019 levels. Interestingly, premium travelers also:
In fact, premium segment travelers in America are choosing to stay longer than ever before, with an increase of 14% during 2022 compared to 2019. This growth is particularly evident among small groups and families.
It's time to shift your thinking and focus on accommodating not just luxury, but premium travelers as well. This is a rapidly growing segment of travelers who are willing to spend more in-destination, stay longer, and travel more frequently than those in the economy segment. It’s time to tap into this opportunity and elevate your service to inspire and meet the needs of this valuable market.
Even though it will take time for China to be fully reinstated into the world travel market, the growing wealth across the region is a promising sign for outbound travel growth. According to Oxford Economics, there is potential for outbound travel to reach 48% of 2019 levels, which means roughly 17 million additional Chinese travelers will be exploring both international and domestic travel markets.
The reopening of China's tourism industry presents a wonderful opportunity for the growth of luxury travel. With the affluent demographics of Asia showing a strong demand for this style of travel, we can expect a massive outbound source market to emerge in the next few years.
As a global travel partner, with thousands of hotels and ancillaries in China and the Asia Pacific region, we offer all our clients access to fast-growing travel segments even in the most hard-to-reach spaces, while our cloud-based technology platforms provide fast, simple access to a network of global travel products to curate your clients’ bespoke travel plans.
Put simply, working with us at Bedsonline puts you in the right position to access some of the most valuable travel segments out there!
Register your agency today to start capitalizing on this re-emerging segment.
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As suggested in our article detailing some of the top travel trends for 2023, high-impact conservation remains another exciting opportunity within the luxury travel segment. Pelorus, a company that offers luxury trips, has recognized that high net-worth travelers are no longer satisfied with traditional notions of luxury travel. Instead, they are seeking experiences that allow them to contribute to the preservation and protection of the world's environments. By choosing trips that prioritize sustainability and environmental responsibility, these travelers are making a positive impact on the future of our planet while enjoying all the luxuries of a high-end vacation.
Moreover, a report from Virtuoso reveals that over half of Gen Z and nearly half of Millennials are willing to pay extra for sustainable tourism experiences. Additionally, a majority of Millennials are seeking travel opportunities that preserve the natural and cultural heritage of destinations.
The potential for the luxury travel market to attract high-spending, eco-conscious Millennial families from around the world is an exciting opportunity; especially considering that Millennials represent 23% of the adult population globally and their Gen Alpha children being an increasingly influential segment. So catering to their needs and desires could lead to great success!
CNTraveller suggests that ‘mindful movement is the new buzzword’ when it comes to luxury wellness as one of the top travel trends, and we’re inclined to agree - though mindful movement is certainly not new as a concept!
From hypnotherapy and nutritional assessments to astrology, forest bathing or sound baths, the concept of holistic wellness as a mainstream driver for travel has deserved a place on the radar since 2022. So whether your clients are looking for a remote wellness spa catering to the highest-quality preventative treatments and science-based technologies, or they’re looking to rediscover the ancient arts of holistic techniques like QiRong (a Chinese breathing technique) or Ayurvedic wellness in Indonesia, luxury wellness experiences are attracting more and more affluent demographics who want to escape from stress. And with the increasing growth of the wellness tourism market on a global scale, there has never been a better time to ensure that you understand how to sell these travel experiences to your luxury clients.
So, there you have it! While there are many trends to watch out for regarding the luxury travel segment, these are just a few of those that we find the most interesting especially for travel advisors!
Sources:
https://www.carrier.co.uk/media/8541963/carrier-trends-2023.pdf
https://www.oxfordeconomics.com/resource/china-travel-recovery-timings-are-clear-but-magnitude-remains-uncertain-for-2023/
https://globetrender.com/2022/11/27/luxury-travel-and-yachting-trends-revealed-2023-2027/
What's shaping the world of travel? Find out with our travel trends guide!
⭐ Where your customers will want to travel
⭐ Rising trends, including luxury and sustainable travel and the impact of younger travellers
⭐ And the types of experiences your clients are thinking of booking!
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