Luxury tourism sector set for...

In the survey, 29% of respondents stated that their budgets are now higher than pre-pandemic levels

Research by GlobalData has found that the pandemic has transformed many travellers into high-net-worth individuals and made the super-wealthy even wealthier.

As a result, the luxury leisure market experienced a strong recovery as wealthy consumers, now with higher levels of disposable income, began to travel again in 2021.

When looking at the US specifically, GlobalData found that total hotel revenue from leisure travellers for luxury hotels showed the strongest recovery in 2021 Year-on-Year (YoY), increasing by 147%.

Commenting on the findings, GlobalData Travel and Tourism analyst Ralph Hollister said: “This is a significantly higher percentage increase in comparison to the US budget hotel sub-sector, which experienced a YoY revenue increase of 42%.

“When looking ahead, total revenue from leisure travellers for luxury hotels in the US is expected to grow at a robust Compound Annual Growth Rate (CAGR) of 25.2% between 2021 and 2024. This could be due to the stiff increase in the number of high-net-worth individuals in developed countries such as the US.”

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The company’s research also showed that 2% of US citizens had a net-worth of more than $1 million in 2021. This indicates that the pandemic has been beneficial for a significant segment of the global market.

Increases in disposable income may have been created through increased saving due to pandemic-induced restrictions on movement, or through favourable economic conditions that have caused house prices to soar.

Hollister added: “The ongoing recovery of luxury tourism looks to be in good stead as the number of high-net-worth individuals continues to grow across the globe, and especially in important source markets such as the US.

“Increasing amounts of disposable income will boost demand for premium products and services. The destinations and companies that can offer the most unique and authentic experiences stand to increase their share in this lucrative market.”

For more information, visit www.globaldata.com