Demand for luxury travel is on the...

Almost 30% of travellers say their holiday budgets are higher after Covid

The Covid-19 pandemic has brought emerging consumer travel trends to the luxury travel market.

Trends includes a boom in private aviation services, private buyouts of large villas or boutique hotels, and remote working, dubbed ‘workations’.

In GlobalData’s latest report, titled ‘Luxury Travel Market Trend and Analysis of Traveller Types, Key Destinations, Challenges and Opportunities, 2022 Update’, data suggests that luxury travellers are seeking experiences that are more “immersive and exceptional” than in previous years.

Source: GlobalData

Despite the demand for luxury travel, there’s a growing demographic of socially conscious, high-net-worth consumers who are rejecting overt displays of wealth in favour of inconspicuous and responsible consumption.

Their approach to luxury is driven by ethical living, artisanship, authenticity and sustainability. Experience is the new currency for these holidaymakers, who seek self-fulfilment through greener travel and eco holidays, while wanting to ‘do good’ for people and the planet.

If luxury travel brands ignore these travel trend, they risk a total disconnect with the audience looking for sustainable holidays

Commenting on the findings, GlobalData travel and tourism analyst Hannah Free said: “With travellers determined to make up for lost time, 2022 could see an increase in holiday budgets for luxury travellers, with an uptick in demand for ‘once in a lifetime’ adventures.

“According to a GlobalData poll, when respondents were asked if their holiday budgets had changed due to Covid-19, 16% reported that their budgets were ‘a lot higher than pre-Covid-19’, while 12% of respondents stated that their budgets were ‘slightly higher than pre-Covid-19’.”

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Free concluded: “While Covid-19 has changed many aspects of luxury travel, there are still several defining features that sets the sector apart from mass market tourism. This includes hyper-personalisation, exclusivity, unique experiences, intuitive service and the ever important ‘human touch’ element.”

For more information, visit www.globaldata.com