Luxury travel has deep pockets
They may be a tricky customer but not only are they spending more than ever, they are also setting trends finds EyeforTravel’s latest report
Luxury consumers spend over six times as much on travel than the average consumer annually, and the trend is for this disparity to widen finds EyeforTravel’s The Global Luxury Travel Consumer report.
The average traveller spends $1,690 a trip, and take around three each year. By contrast, luxury consumers and fork out $5,365 on each journey, and take just over 5.6 trips.
EyeforTravel’s research finds that this gap is more likely to widen than diminish. According to the Knight Frank Wealth Report 2017 the number of high het worth individuals (HNWIs) globally is expected to grow by double digits each year and well into the 2020's, adding millions of luxury consumers into the market. For the travel industry, more good news is that luxury consumers are expected to prioritise experiential spending and put less emphasis on personal goods.
What is more, a survey showed that on average luxury consumers are also planning to take twice as many vacations holiday.
16% of luxury travellers report planning 10 or more trips a year
75% are planning between five and nine trips in the 12 months
It is clear that consumers are switching more of their discretionary spend into leisure travel. While developed economies are leading this trend, as wealth becomes more widespread emerging markets are playing catch up. The report notes that Chinese luxury consumers are shifting their spending away from shopping and towards activities and accommodation, with a particular focus on adventure and exploration.
High end up
While high-end tours and activities should be one of the primary sectors to benefit, the changing priorities of the luxury traveller means hotels will need to rethink their strategy. Today luxury travellers are now more focused on finding unique accommodation, and so hotels will need to think about character and local activities that can really add something to these consumers’ trips while still continuing to provide high-level service.
“Our research suggests that despite the challenges, it pays to focus on the luxury traveller and not just because they are big spenders,” says Alex Hadwick, Head of Research at EyeforTravel. Indeed, luxury travellers are trendsetters and are an indication of where the market might head in the future.
“The luxury traveller is at the forefront of a number of trends, including rising disposable income, a focus on the experience, growing smartphone usage in the travel research and booking process.”
With spend on travel rising in this segment there is clearly everything to play for.
Country analysis of the major luxury travel markets in Europe, North America, Asia-Pacific, and the Middle East, covering both developed and emerging economies.
Unique proprietary data based on more than 2,000 luxury travel consumers.
Behavioral analysis of luxury travellers, including lead times, device usage, booking patterns, and spending habits.
Major trends and developments in the luxury travel market.
Data taken and analysed from nearly 100 different sources.