Table of Contents
Overview
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- What you need to know
- Covered in this Report
Executive Summary
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- The luxury traveller market
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- Figure 1: Luxury traveller groups, August 2017
- Under-45s most likely to reduce luxury spending as economy slows
- UK falls down HNWI table
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- Figure 2: Top 10 nations for number of HNWIs*, 2016
- Strong growth seen across many specialist brands
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- Figure 3: Leading luxury holiday specialist operators, by turnover, 2016
- Getting personal
- Wellness and gastronomy key elements
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- Figure 4: Elements of luxury travel, August 2017
- North America and Asia are top luxury choices
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- Figure 5: Destinations visited for luxury holidays, by luxury traveller groups, August 2017
- Cruise/escorted tours are key growth areas for specialist brands
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- Figure 6: Types of luxury holiday taken, by luxury traveller groups, August 2017
- ‘Comfort’ and ‘feeling special’ are most popular meanings attached to luxury travel
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- Figure 7: Meanings attached to luxury holidays, by luxury traveller groups, August 2017
- Analogue luxury
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- Figure 8: Attitudes towards holidays, by luxury traveller groups, August 2017
- What we think
Issues and Insights
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- Targeting new-generation luxury clients
- The facts
- The implications
- Potential for celebration breaks
- The facts
- The implications
The Market – What You Need to Know
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- Incomes squeezed even in top quintile
- UK HNWI growth has been overtaken
- Leading long-haul destinations
- Mauritius, India, Vietnam and Japan among trending luxury destinations
- Luxury cruises on crest of a wave
- LGBT and mini-moon opportunities
Market Background
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- Top household quintile sees real-term fall in income…
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- Figure 9: Average annual household income after tax and benefits, by quintile, 2008/09-2015/16
- …but older travellers are less likely to reduce holiday spend
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- Figure 10: Agreement with the statement ‘Concerns about the UK economy mean that I am likely to spend less on holiday in the next 12 months’, by demographics, August 2017
- UK HNWI growth has stalled
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- Figure 11: Top 10 nations for number of HNWIs*, 2014-16
- Overseas holidays still up but growth rates slowing
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- Figure 12: Trends in the number and value of overseas holidays taken by UK residents, 2011-16
- The hybrid long-haul traveller
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- Figure 13: Long-haul, short-haul and total overseas holiday volume by UK residents, 2011-16
- Holidays to Spain and Italy booming
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- Figure 14: Top 20 overseas holiday destinations, by number of trips, 2012-16
- Holidays to Caribbean up 18% in 2016
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- Figure 15: Top 15 long-haul holiday destinations, by number of trips by UK residents, 2015 and 2016
- Maldives and Mauritius top Kuoni’s destination ranking
- Japan currently a high-growth luxury destination
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- Figure 16: Top 20 luxury holiday destinations, Kuoni Annual Trends report, 2012-17
- Ultra-luxury cruise enjoying surge in demand
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- Figure 17: Volume of UK ultra-luxury cruise passengers, 2010-16
- Weddings in decline but spending is rising
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- Figure 18: Number of marriages in England and Wales, 2000-14
- Same-sex marriage opportunity
Companies and Products – What You Need to Know
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- Kuoni remains largest luxury specialist but revenue growth is flat
- Audley and ITC have become second and third-biggest players
- A&K rethinks strategy in wake of Chinese investment
- Leading French specialist enters UK market
- ‘Adventure plus comfort’ and wellness are key trends
Luxury Travel Specialists
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- Figure 19: Leading luxury holiday specialist operators, by turnover, 2010-16
- Kuoni expanding its touring programme
- Fast-growing Audley positions itself as tailor-made specialist
- ITC emerges as a leading player following acquisition
- Scott Dunn revenues have tripled since 2010
- Kenwood has the highest six-year growth rate
- Destinology to open second store following full Saga takeover
- A&K targets new breed of traveller following Chinese takeover
- French group Voyageurs du Monde enters UK market
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Luxury Travel Product Innovation
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- A simpler luxury aesthetic
- Luxury adventure
- Cruise targeting younger premium travellers
- All-inclusive wellness
- Airbnb-deluxe
- Self-exploration
- A taste of the high life
The Consumer – What You Need to Know
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- Big spenders
- Spa and fine dining are key elements at top end of market
- North America and Asia are leading destination choices
- Beach/city are most popular but cruise/escorted tours offer huge opportunity for specialist brands
- Millennials more likely to value experiences over stuff
- Feeling special is key at top end of market
- Real luxury
- Human values
- Hibernation mode
Defining the Luxury Traveller
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- One in 20 consumers spend £3,000+ per head on holiday
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- Figure 20: Amount spent on most expensive holiday taken, 2016 and 2017
- One in 10 consumers take luxury short breaks
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- Figure 21: Duration of most expensive holiday taken, August 2017
- Almost three in 10 holidaymakers have stayed in five-star accommodation
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- Figure 22: Use of premium/luxury holiday accommodation, August 2017
- Luxury traveller groups
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- Figure 23: Luxury traveller groups, August 2017
The Luxury Traveller – Products and Services
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- Wellness and gastronomy are key elements
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- Figure 24: Elements of luxury travel, by luxury traveller groups, August 2017
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- Figure 25: Number of luxury travel elements in most expensive holiday, August 2017
The Luxury Traveller – Destinations
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- North America and Asia are leading luxury destinations
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- Figure 26: Destinations visited for luxury holidays, by luxury traveller groups, August 2017
The Luxury Traveller – Holiday Types
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- Cruise and escorted tours have big luxury travel potential
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- Figure 27: Types of luxury holiday taken, by luxury traveller groups, August 2017
- Experimental luxury group
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- Figure 28: Number of luxury holiday types taken in past five years, August 2017
- Dream holidays
The Luxury Traveller – Meaning of Luxury
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- Millennials value luxury experiences more than products
- Comfort, feeling special, unique experiences and memories are leading associations
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- Figure 29: Meanings attached to luxury holidays, by luxury traveller groups, August 2017
- Escape, surprise and adventure are important themes for younger luxury travellers
- Room with a view
The Luxury Traveller – Attitudes
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- Authenticity the new luxury?
- Specialist advice highly valued by luxury travellers
- Unconventional self-image
- It’s not what you own but where you’ve been
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- Figure 30: Agreement with attitudinal statements towards holidays, by luxury traveller groups, August 2017
- Luxury as an analogue experience
- Luxury Occasions
- Under-45s most likely to reduce luxury spend
CHAID Analysis – Attitudes
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- Methodology
- A bucketful of memories
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- Figure 31: Target groups based on statements about holidaying – CHAID – Tree output, August 2017
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- Figure 32: Target groups based on statements about holidaying – CHAID – Table output, August 2017
Appendix
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- Definitions
- Abbreviations
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