Table of Contents
Executive Summary
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- Top takeaways
- Luxury travel is not only for mature and wealthy adults
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- Figure 1: Most recent luxury travel experience, general population, January 2021
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- Figure 2: Distribution of luxury traveler demographics, general population and AHNW, January 2021
- Impact of COVID-19 on luxury travel
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- Figure 3: Short-, medium- and long-term impact of COVID-19 on luxury travel, February 2021
- The dynamics of luxury travel
- The general population sees luxury travel as an upgrade
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- Figure 4: Reasons for taking next luxury trip, general population vs AHNW, January 2021
- Luxury demands between segments amount to new vs better
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- Figure 5: Must-have components of luxury travel, general population vs AHNW, January 2021
- Pandemic leads to a desire for personal space
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- Figure 6: Pandemic-related luxury travel attitudes, general population vs AHNW, January 2021
- Luxury travel will benefit from getting greener in the long run
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- Figure 7: Attitudes toward environmental concerns, by age and household assets, January 2021
- What it means
The Luxury Travel Market – Key Takeaways
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- Half of adults engage in the luxury market
- The wealthy aren’t the only luxury travelers
- Interest in luxury goods is a key indicator of market participation
- Those with higher incomes want normality
- Consumers are getting back into financial shape
Luxury Travel
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- Luxury travel on the rise among general population
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- Figure 8: Luxury travel experience, general population, May 2019-January 2021
- Luxury travel among affluent travelers remains flat
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- Figure 9: Luxury travel experience, AHNW population, May 2019-January 2021
- COVID-19 has dampened luxury travel among wealthier consumers
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- Figure 10: Most recent luxury travel experience, general population, January 2021
- Impact of COVID-19 on luxury travel
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- Figure 11: Short-, medium- and long-term impact of COVID-19 on luxury travel, February 2021
- Lockdown
- Re-emergence
- Recovery
- Luxury planning is more popular among those least concerned about COVID-19
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- Figure 12: Future luxury travel intent, general population vs AHNW, January 2021
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- Figure 13: Luxury travel intent, general population demos, January 2021
Luxury Travelers
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- General luxury travelers are diverse in age and income
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- Figure 14: Distribution of luxury traveler demographics, general population and AHNW, January 2021
- Luxury experiences win out over luxury goods
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- Figure 15: Attitudes toward luxury, general population vs AHNW, January 2021
- Consumers won’t jump after brands just for name’s sake
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- Figure 16: Attitudes toward luxury, general population vs AHNW, January 2021
- Interest in luxury goods is a key indicator of interest in luxury travel
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- Figure 17: Luxury travel plans – CHAID – Tree output, January 2021
Market Factors
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- How income impacts travel outlook
- Concerns about COVID-19 slightly elevated for high-income adults
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- Figure 18: COVID-19 worry, by HHI, January 2021
- However, they’re the most comfortable engaging in travel behaviors
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- Figure 19: Comfort with travel activities during the pandemic, by HHI, January 2021
- Adults with higher household income are most ready to get back to normal
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- Figure 20: Attitudes toward the pandemic, by HHI, January 2021
- Wealth boosts advantages in vaccination
- The pandemic wealth gap can make luxury more exclusive
- Stimulus can boost economic confidence
- Confidence in the economy is shaky, but improving
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- Figure 21: Consumer Sentiment Index, January 2007-January 2021
- Another round of stimulus checks is on the horizon
- Improving employment points toward recovery
- Unemployment is slowly improving
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- Figure 22: Unemployment and underemployment, January 2007-December 2020
- The rise of remote working can increase vacation time
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- Figure 23: COVID-19 employment situation, October 2020
Companies and Brands – Key Takeaways
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- Travelers in different asset categories have different motivations
- Brands are addressing various luxury traveler needs
- Ease of planning is in demand
Luxury Motivations
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- General travelers look to augment, AHNWs look to explore
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- Figure 24: Reasons for taking next luxury trip, general population vs AHNW, January 2021
Competitive Strategies
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- For the AHNW traveler: Send them to new places
- Four Seasons jet tour provides new horizons while incorporating pandemic traveler demands
- Out-of-this-world luxury begins this year
- For the general population: Focus on mental wellbeing
- SAYANNA puts a focus on mental health
- Personal fitness goes in-room
- For both: Expand payment flexibility
- Travelers can increasingly subscribe to luxury
- &Beyond makes luxury planning accessible
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- Figure 25: &Beyond landing page, February 2021
The Consumer – Key Takeaways
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- The AHNW traveler is more demanding of luxury
- Luxury travel has different purposes for different target groups
- Relaxation is the luxury travel theme of 2021
- Pandemic habits map to existing luxury offerings
- Luxury needs a green track for greenbacks
What is Luxury Travel?
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- Indulgence, personal attention are distinguishing factors for high-end luxury travel
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- Figure 26: Descriptions of luxury travel, general population vs AHNW, January 2021
- Women may be open to indulgent travel post-pandemic
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- Figure 27: Descriptions of luxury travel, by gender and household assets, January 2021
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- Figure 28: Attitudes toward the pandemic, by gender, January 2021
- Luxury providers can focus on unique offerings for younger travelers
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- Figure 29: Descriptions of luxury travel, by age and household assets, January 2021
Luxury Necessities
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- AHNW looks for “new,” the general population wants “better”
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- Figure 30: Must-have components of luxury travel, general population vs AHNW, January 2021
- Dining and shopping are big draws for the general population
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- Figure 31: TURF Analysis – Necessary luxury components, January 2021
- Some luxury features are important to women regardless of household value
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- Figure 32: Must-have components of luxury travel, by gender and household assets, January 2021
Reasons for Making 2021 Luxury Travel Plans
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- Those with luxury travel plans intend to take it easy
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- Figure 33: Interest among luxury trip planners, general population vs AHNW, January 2021
- Despite unprecedented times, enduring messages prevail
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- Figure 34: TURF Analysis – Luxury travel motivations, January 2021
Encouraging Travelers to Make 2021 Luxury Plans
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- Relaxation and exploration can also encourage reluctant participants
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- Figure 35: Incentives to take a luxury vacation among adults with no luxury travel plans, general population vs AHNW, January 2021
- Mental health messaging can cut through young consumers’ varied interests
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- Figure 36: Incentives to take a luxury vacation among general population adults with no luxury travel plans, by age, January 2021
Post-pandemic Luxury Travel
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- The pandemic is creating opportunities among the general population
- Social distancing is a key luxury attribute
- New destinations can spark curiosity
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- Figure 37: Pandemic-related luxury travel attitudes, general population vs AHNW, January 2021
- Younger travelers are finding new destinations
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- Figure 38: Pandemic-related luxury travel attitudes, by age and household assets, January 2021
Luxury Travel Planning
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- Travelers want control, but the stakes could be high
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- Figure 39: Luxury travel planning attitudes, general population vs AHNW, January 2021
- Providers should make work possible, but prepare for shorter trips
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- Figure 40: Luxury travel planning attitudes, by age and household assets, January 2021
Luxury Travel and Sustainability
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- Luxury should take green cues from the general population
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- Figure 41: Attitudes toward environmental concerns, general population vs AHNW, January 2021
- Sustainability is the demand of future luxury travelers
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- Figure 42: Attitudes toward environmental concerns, by age and household assets, January 2021
- Sustainability spotlight: overnight rail provides a future luxury opportunity
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
Appendix – The Market
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- Figure 43: Luxury travel plans – CHAID – Table output, January 2021
- Methodology
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Appendix – The Consumer
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- Figure 44: Table – TURF Analysis – Necessary luxury components, January 2021
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- Figure 45: Table – TURF Analysis – Luxury travel motivations, January 2021
- Methodology
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