Luxury Travel is the term for the travel industry that caters to high net worth individuals who have the means and resources to indulge in luxurious trips and vacations. This category of travelers has been increasing in popularity as a result of the rise in affluent demographics and a strong demand for unique travel experiences.
Luxury travellers seek a variety of travel experiences, such as adventure sports (skiing, scuba diving, horseback riding), cultural excursions, and relaxation in beautiful accommodations or on beaches. They also expect the experience to be exemplary and personalized, making them feel like a part of the destination’s culture.
A recent trend report from Skift says that the idea of luxury has changed from ‘things’ to ‘experiences’. Where the concept of ‘things’ previously focused on designer handbags, watches and jewellery, now it’s all about experiences – and not just tangible goods.
Creating a personalized experience is becoming increasingly important for luxury travelers, with 80% of them saying that they’d spend more on brands that personalize their products. Sending guests information specific to their needs before they arrive – for example, a newspaper and wake-up call – can help streamline their travel experience, and will save them time when they’re on property.
As global wealth grows, a new generation of well educated, highly demanding travelers is challenging the hospitality industry to rethink both the definition of luxury and its role as a service. This has been driven by a variety of factors, including the rise of digital-first Millennials and Generation X, a growing affluent female market, a rapidly emerging Chinese middle class and the multi-generational travel movement.