The travel industry doesn’t have the luxury of ignoring the luxury traveler any longer, according to a newly released report by Amadeus.
We have entered a new age where luxury travel is curated, real-time and experience-led. And over the next 10 years the growth rate in outbound luxury trips is projected at 6.2%, almost a third greater than overall travel (4.8%). The report, Shaping the Future of Luxury Travel, examines the fresh challenges and opportunities that the luxury travel market will face over the next decade.
“Luxury means different things to different people and this is especially true today,” said Rob Sinclair-Barnes, Strategic Marketing Director at Amadeus. “Travel providers who understand the nuances of each individual traveler and who succeed in offering luxury experiences tailored to their clients’ individual needs will truly reap the rewards that this growth in the luxury market offers.”
The report looks at regional trends, identifies six luxury traveler tribes, and explores the future of luxury travel until 2025. And you might be surprised to find who is forecast to make up the spectrum of “luxury” travelers in the future.
The report identifies six luxury traveler sub-tribes, as defined by their behaviors, intentions and different levels of affluence:
– Always Luxury
– Special Occasion
– Bluxury (business luxury)
– Cash Rich/Time Poor
– Strictly Opulent
– Independent & Affluent
Commissioned by Amadeus, the report was developed with data from Tourism Economics and with dozens of expert interviews with luxury travel experts. Some key findings include:
- Luxury travel is growing faster than overall travel
- North America and Western Europe account for 64% of global outbound luxury trips, despite only making up 18% of the world’s population
- From 2011-2025, Asia Pacific’s luxury travel market will see faster overall growth than Europe’s, but this growth will decelerate from 2015-2025
What is considered luxury today will continually shift to become mainstream tomorrow. And there is an emerging and important trend in luxury consumption: the growing preference of high-end consumers for truly unique experiences over expensive material goods. And the continued desire for more rewarding traveler experiences provides an essential catalyst to evolve and improve travel industry quality and service standards.
To read more about the new age of luxury travel and affluent travelers as well as download the Amadeus report, click here.