Table of Contents
Executive Summary
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- The market
- Top earners see decline in household income in 2017/18
- Volume and value of HNWIs in the UK declined in 2018
- Volume of sea cruises projected to grow above holiday market average
- Long-haul destinations under pressure amid rising demand for shorter breaks
- Companies and brands
- Leading luxury specialists continue to grow
- Audley Travel expands European and cruises offering
- Kenwood Travel introduces online booking system
- Airbnb expands into luxury market by offering tailor-made stays
- Abercrombie & Kent expands group travel by private jet
- Boeing invests in Virgin Galactic to make space travel accessible
- The consumer
- Volume of Mintel’s luxury traveller segments
- Luxury holiday types diversify
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- Figure 1: Types of luxury holiday taken, August 2017 and August 2019
- Opportunities to provide luxury adventure holidays to families
- Exclusivity is the new luxury
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- Figure 2: Meanings attached to luxury holidays, August 2017 and August 2019
- Search technology falls behind travellers’ needs
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- Figure 3: Preferred search options on a travel company’s website, August 2019
- Motivation and experiences play a crucial role when young travellers search for a luxury holiday
- Luxury travellers value travel agents with specialist knowledge about the destination
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- Figure 4: Attitudes towards paying for travel expert advice and support, August 2019
- Educating travellers is key to making the travel industry greener
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- Figure 5: Attitudes towards minimising impact on the environment whilst travelling, by age, August 2019
- Supporting the local economy and staying in eco-friendly accommodation top the list
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- Figure 6: Considered sustainable travel options, by luxury traveller groups, August 2019
- What we think
Issues and Insights
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- Flexible search technology is key
- The implications
- Making holidays greener through support and inspiration
- The implications
The Market – What You Need to Know
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- Top earners see decline in household income in 2017/18
- Volume and value of HNWIs in the UK declined in 2018
- Volume of sea cruises projected to grow above holiday market average
- Long-haul destinations under pressure amid rising demand for shorter breaks
Market Drivers
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- Top earners see decline in household income in 2017/18
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- Figure 7: Average annual household income after tax and benefits, by quintile, 2008/09-2017/18
- Volume and value of HNWIs in the UK declined in 2018
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- Figure 8: Top 10 nations for number of HNWIs*, 2014-18
- Almost half of high earners are confident about their financial situation
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- Figure 9: Consumer sentiment among high earners for the coming year, January 2018-October 2019
- Volume of sea cruises projected to grow above holiday market average
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- Figure 10: Forecast volume of UK & Ireland sea cruise holidays (number of trips), 2013-23
- Long-haul destinations under pressure amid rising demand for shorter breaks
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- Figure 11: Volume of UK overseas holidays by global region, by duration, 2018
Companies and Brands – What You Need to Know
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- Leading luxury specialists continue to grow
- Audley Travel expands European and cruises offering
- Kenwood Travel introduces online booking system
- Airbnb expands into luxury market by offering tailor-made stays
- Abercrombie & Kent expands group travel by private jet
- Boeing invests in Virgin Galactic to make space travel accessible
Luxury Travel Specialists
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- Leading luxury specialists continue to grow
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- Figure 12: Leading luxury holiday specialist operators, by turnover, 2012-18
- Kuoni launches new Family Holidays brochure
- Audley Travel expands European destinations and cruises offering
- Kenwood Travel introduces online booking system for the first time
- Airbnb expands into luxury market by offering tailor-made stays
Launch Activity and Innovation
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- Luxury travel companies are showcasing exclusive experiences
- Kuoni inspires travellers to move away from the crowds
- Abercrombie & Kent expands group travel by private jet
- Space travel will open new doors to luxury travellers
- Boeing invests in Virgin Galactic to make space travel accessible
- New space hotel concept uses artificial gravity
- Getting luxury travellers on board a cruise
- Scenic Eclipse showcases its discovery-themed wine list
- Abercrombie & Kent offers one-time only expedition to Antarctic
- Working towards a more sustainable travel industry
- Luxury travel tour operators increase efforts to reduce single-use plastic
- Airbnb offers purposeful trip “Antarctic Sabbatical”
- Luxury brands scale down whilst budget brands scale up
- Emirates unbundles business class tickets on selected routes
- Airbnb launches Airbnb Luxe; higher-end accommodation with tailored experiences
The Consumer – What You Need to Know
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- Volume of Mintel’s luxury traveller segments
- Luxury holiday types have become more diverse
- Exclusivity is the new luxury
- Search technology falls behind travellers’ needs
- Luxury travellers value travel agents with specialist destination knowledge
- Educating travellers is key to making the travel industry greener
- Supporting the local economy and staying in eco-friendly accommodation top the list
Defining the Luxury Traveller
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- Mintel’s approach to defining the luxury traveller
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- Figure 13: Amount spent on most expensive holiday taken, August 2019
- Younger generation keen on shorter trips
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- Figure 14: Duration of most expensive holiday taken, by age profile, August 2019
- More than one-third of holidaymakers have stayed in five-star accommodation
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- Figure 15: Use of premium/luxury holiday accommodation, August 2019
- Volume of Mintel’s luxury traveller segments
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- Figure 16: Luxury traveller segments, August 2019
- Millennials choose experiences over possessions
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- Figure 17: Luxury traveller segments, by age and household income profile, August 2019
Holiday Types
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- Luxury holiday types have become more diverse
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- Figure 18: Types of luxury holiday taken, August 2017 and August 2019
- Younger generation driving force behind diverse holiday behaviour
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- Figure 19: Types of luxury holiday taken, by age, August 2019
- Most select luxury target group keen on taking guided touring holidays
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- Figure 20: Types of luxury holiday taken, by luxury traveller groups, August 2019
- High interest in unusual accommodation
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- Figure 21: Interest in unusual accommodation, by age, August 2019
Meaning of Luxury
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- Exclusivity is the new luxury
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- Figure 22: Meanings attached to luxury holidays, August 2017 and August 2019
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- Figure 23: Meanings attached to luxury holidays, by luxury traveller groups, August 2019
- Flexibility to enhance the traveller’s experience
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- Figure 24: Meanings attached to luxury holidays, August 2019
- Opportunities to provide luxury adventure holidays to families
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- Figure 25: Meanings attached to luxury holidays, by age, August 2019
Online Search Preferences
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- Search technology falls behind travellers’ needs
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- Figure 26: Preferred search options on a travel company’s website, August 2019
- Motivation and experiences play a crucial role when young travellers search for a luxury holiday
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- Figure 27: Preferred search options on a travel company’s website, by age, August 2019
- Great variety in path to purchase
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- Figure 28: Holiday selected by respondent in Mintel’s qualitative study, July 2019
Travel Agent Support
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- Luxury travellers value travel agents with specialist destination knowledge
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- Figure 29: Attitudes towards paying for travel expert advice and support, August 2019
- Travel experts should be all-round
- Luxury holidaymakers with children are more open to a travel expert subscription
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- Figure 30: Attitudes towards a subscription for unlimited access to a personal travel expert, CHAID analysis, August 2019
Travelling and the Environment
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- Consensus among consumers: travel companies should take actions to protect the environment
- The vast majority of luxury travellers want to help to protect the environment
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- Figure 31: Attitudes towards minimising impact on the environment whilst travelling, by age, August 2019
- Educating travellers is key to making the travel industry greener
- Transparency is also required to enable travellers to make greener choices when booking
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- Figure 32: Attitudes towards ethical labelling, by age, August 2019
Sustainable Travel Preferences
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- Supporting the local economy and staying in eco-friendly accommodation top the list
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- Figure 33: Considered sustainable travel options, by luxury traveller groups, August 2019
- Younger generation more likely to take part in eco-friendly and volunteering activities
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- Figure 34: Considered sustainable travel options, by age, August 2019
Appendix – Data Sources, Abbreviations and Supporting Information
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- Definitions
- Abbreviations
- Consumer research methodology
- CHAID analysis methodology
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