Table of Contents
Overview
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- What you need to know
- Covered in this Report
Executive Summary
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- The market
- HNWI growth in the UK lags behind elsewhere
- Uncertainties around Brexit put a spotlight on cheaper destinations
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- Figure 1: What effect luxury travellers think Brexit will have on the economy, August 2018
- Further increase in luxury (expedition) cruises expected
- The US remains by far the most visited long-haul destination
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- Figure 2: Top 10 long-haul destinations, by volume of trips (holidays), 2013-17
- Companies and brands
- Kuoni showcases its Personal Travel Experts
- DER Touristik introduces tailor-made brand
- Airbnb’s additions disruptive for luxury travel suppliers
- Automotive and retail are flirting with luxury travel brands
- The consumer
- Defining the luxury traveller
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- Figure 3: Luxury traveller segments, August 2018
- Even luxury holidaymakers travel economy
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- Figure 4: Mode of transport used during most expensive holiday in past five years, August 2018
- Hotel suites, sea views and wellness are key elements
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- Figure 5: Luxury elements present during most expensive holiday in past five years, August 2018
- The importance of making day trips and excursions bookable
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- Figure 6: Activities undertaken during most expensive holiday in past five years, August 2018
- Luxury travellers want to return richer in knowledge
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- Figure 7: Attitudes towards luxury holidays, August 2018
- Airbnb means serious competition for luxury travel brands
- Luxury travellers still love a special offer
- Huge potential for cruising among luxury travellers
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- Figure 8: Interest in cruising, August 2018
- Cities and wildlife/nature drive interest in cruising
- Showcasing quality time could convince families to join a cruise
- Showing flexibility in cruising could increase potential
- What we think
Issues and Insights
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- Social media becomes more powerful in the customer journey
- The facts
- The implications
- Travel expertise comes back in to fashion
- The facts
- The implications
The Market – What You Need to Know
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- HNWI growth in the UK lags behind elsewhere
- Uncertainties around Brexit put a spotlight on cheaper destinations
- Further increase in luxury (expedition) cruises expected
- The US remains by far the most visited long-haul destination
Market Background
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- Top earners see decline in real-term income over the longer term
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- Figure 9: Average annual household income after tax and benefits, by quintile, 2008/09-2016/17
- HNWI growth in the UK lags behind elsewhere
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- Figure 10: Top 10 nations for number of HNWIs*, 2014-17
- Over half of high earners are confident about their financial situation
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- Figure 11: Consumer sentiment among high earners for the coming year, January 2017-October 2018
- Holidaying intentions among high earners remain strong
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- Figure 12: Holidaying intentions among high earners, January 2017-October 2018
- Uncertainties around Brexit put a spotlight on cheaper destinations
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- Figure 13: What effect luxury travellers think Brexit will have on the economy, August 2018
- Further increase in luxury (expedition) cruises expected
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- Figure 14: UK and Ireland ocean cruise passengers, 2013-17
- The US remains by far the most visited long-haul destination
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- Figure 15: Top 10 long-haul destinations, by volume of trips (holidays), 2013-17
Companies and Brands – What You Need to Know
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- Kuoni showcases its Personal Travel Experts
- DER Touristik introduces tailor-made brand
- Airbnb’s additions disruptive for luxury travel suppliers
- Automotive and retail are flirting with luxury travel brands
Luxury Travel Specialists
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- Despite fall in turnover, Kuoni remains market leader in premium travel
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- Figure 16: Leading luxury holiday specialist operators, by turnover, 2011-17
- Kuoni showcases its Personal Travel Experts
- The Inspiring Travel Company makes its debut on TV
- DER Touristik introduces tailor-made brand
- Mergers to offer more choice and strengthen position of brands
- Airbnb’s additions disruptive for luxury travel suppliers
Launch Activity and Innovation
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- Companies are pushing boundaries to offer exclusive experiences
- Innovations to increase the comfort during travelling
- Personalisation to allow travellers to create their own travel experience
- Automotive and retail are flirting with luxury travel brands
- Increasingly fast-paced lifestyle triggers slower means of travel
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- Figure 17: One of the three Grand Suites aboard the Venice Simplon Orient Express
The Consumer – What You Need to Know
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- Volume of luxury traveller segments
- Millennials are willing to spend money on travelling
- Even luxury holidaymakers travel economy
- The importance of making day trips and excursions bookable
- Luxury travellers still love a special offer
- Huge potential for cruising among luxury travellers
- Showing flexibility in cruising could increase potential
Defining the Luxury Traveller
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- High spending on holidays has not changed much over time
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- Figure 18: Amount spent on most expensive holiday taken, August 2015-August 2018
- Most expensive holidays last a week or more, but short luxury breaks also appeal
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- Figure 19: Duration of most expensive holiday taken, August 2018
- Three in 10 holidaymakers have stayed in five-star accommodation
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- Figure 20: Use of premium/luxury holiday accommodation, August 2018
- Volume of luxury traveller segments
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- Figure 21: Luxury traveller segments, August 2018
- Millennials are willing to spend money on travelling
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- Figure 22: Luxury traveller segments, by age and household income, August 2018
The Luxury Traveller – Modes of Transport
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- Self-drive itineraries not to be overlooked in the luxury segment
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- Figure 23: Mode of transport used during most expensive holiday in past five years, August 2018
- Even luxury holidaymakers travel economy
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- Figure 24: Mode of transport used during most expensive holiday in past five years, August 2018
- Room for airports and airlines to take travel experiences to new levels
The Luxury Traveller – Products and Services
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- Hotel suites, sea views and wellness are key elements
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- Figure 25: Luxury elements present during most expensive holiday in past five years, August 2018
- A fifth of luxury travellers enjoyed four or more elements
The Luxury Traveller – Holiday Activities
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- The importance of making day trips and excursions bookable
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- Figure 26: Activities undertaken during most expensive holiday in past five years, August 2018
- The power of social media
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- Figure 27: Activities undertaken during most expensive holiday in past five years, by age, August 2018
The Luxury Traveller – Attitudes
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- Luxury travellers want to return richer in knowledge
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- Figure 28: Attitudes towards luxury holidays, August 2018
- Young urban travellers keen to learn
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- Figure 29: Attitudes towards learning experiences in luxury travel – CHAID, August 2018
- Airbnb means serious competition for luxury travel brands
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- Figure 30: Attitudes towards luxury holidays, by age, August 2018
- Luxury travellers still love a special offer
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- Figure 31: The need for special deals/offers, by age and household income, August 2018
The Luxury Traveller – Cruises
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- Huge potential for cruising among luxury travellers
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- Figure 32: Interest in cruising, August 2018
- Cities and wildlife/nature drive interest in cruising
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- Figure 33: Cruise motivators, August 2018
- Showcasing quality time could convince families to join a cruise
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- Figure 34: Cruise motivators, by age, August 2018
- Younger potential cruisers are more likely to need an expert/agent
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- Figure 35: Consideration of experts/agents when booking a cruise, by age, August 2018
- Showing flexibility in cruising could increase potential
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- Figure 36: Attitudes towards cruises – non-potentials, August 2018
Appendix – Data Sources, Abbreviations and Supporting Information
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- Definitions
- Abbreviations
- Consumer research methodology
- CHAID analysis methodology
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