Luxury Travel - US - March 2021

OVERVIEW
What you need to know
Key issues covered in this Report
Definition
COVID-19: market context
Economic and other assumptions
EXECUTIVE SUMMARY 
Top takeaways
Luxury travel is not only for mature and wealthy adults
Figure 1: Most recent luxury travel experience, general population, January 2021
Figure 2: Distribution of luxury traveler demographics, general population and AHNW, January 2021
Impact of COVID-19 on luxury travel
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
Figure 4: Reasons for taking next luxury trip, general population vs AHNW, January 2021
Luxury demands between segments amount to new vs better
Figure 5: Must-have components of luxury travel, general population vs AHNW, January 2021
Pandemic leads to a desire for personal space
Figure 6: Pandemic-related luxury travel attitudes, general population vs AHNW, January 2021
Luxury travel will benefit from getting greener in the long run
Figure 7: Attitudes toward environmental concerns, by age and household assets, January 2021
What it means
THE LUXURY TRAVEL MARKET – KEY TAKEAWAYS
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
Luxury travel on the rise among general population
Figure 8: Luxury travel experience, general population, May 2019-January 2021
Luxury travel among affluent travelers remains flat
Figure 9: Luxury travel experience, AHNW population, May 2019-January 2021
COVID-19 has dampened luxury travel among wealthier consumers
Figure 10: Most recent luxury travel experience, general population, January 2021
Impact of COVID-19 on luxury travel
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
Figure 12: Future luxury travel intent, general population vs AHNW, January 2021
Figure 13: Luxury travel intent, general population demos, January 2021
LUXURY TRAVELERS
General luxury travelers are diverse in age and income
Figure 14: Distribution of luxury traveler demographics, general population and AHNW, January 2021
Luxury experiences win out over luxury goods
Figure 15: Attitudes toward luxury, general population vs AHNW, January 2021
Consumers won’t jump after brands just for name’s sake
Figure 16: Attitudes toward luxury, general population vs AHNW, January 2021
Interest in luxury goods is a key indicator of interest in luxury travel
Figure 17: Luxury travel plans – CHAID – Tree output, January 2021
MARKET FACTORS 
How income impacts travel outlook
Concerns about COVID-19 slightly elevated for high-income adults
Figure 18: COVID-19 worry, by HHI, January 2021
However, they’re the most comfortable engaging in travel behaviors
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
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
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
Figure 22: Unemployment and underemployment, January 2007-December 2020
The rise of remote working can increase vacation time
Figure 23: COVID-19 employment situation, October 2020
COMPANIES AND BRANDS – KEY TAKEAWAYS 
Travelers in different asset categories have different motivations
Brands are addressing various luxury traveler needs
Ease of planning is in demand
LUXURY MOTIVATIONS
General travelers look to augment, AHNWs look to explore
Figure 24: Reasons for taking next luxury trip, general population vs AHNW, January 2021
COMPETITIVE STRATEGIES
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
&amp;Beyond makes luxury planning accessible
Figure 25: &Beyond landing page, February 2021
THE CONSUMER – KEY TAKEAWAYS 
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?
Indulgence, personal attention are distinguishing factors for high-end luxury travel
Figure 26: Descriptions of luxury travel, general population vs AHNW, January 2021
Women may be open to indulgent travel post-pandemic
Figure 27: Descriptions of luxury travel, by gender and household assets, January 2021
Figure 28: Attitudes toward the pandemic, by gender, January 2021
Luxury providers can focus on unique offerings for younger travelers
Figure 29: Descriptions of luxury travel, by age and household assets, January 2021
LUXURY NECESSITIES
AHNW looks for “new,” the general population wants “better”
Figure 30: Must-have components of luxury travel, general population vs AHNW, January 2021
Dining and shopping are big draws for the general population
Figure 31: TURF Analysis – Necessary luxury components, January 2021
Some luxury features are important to women regardless of household value
Figure 32: Must-have components of luxury travel, by gender and household assets, January 2021
REASONS FOR MAKING 2021 LUXURY TRAVEL PLANS
Those with luxury travel plans intend to take it easy
Figure 33: Interest among luxury trip planners, general population vs AHNW, January 2021
Despite unprecedented times, enduring messages prevail
Figure 34: TURF Analysis – Luxury travel motivations, January 2021
ENCOURAGING TRAVELERS TO MAKE 2021 LUXURY PLANS
Relaxation and exploration can also encourage reluctant participants
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
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
The pandemic is creating opportunities among the general population 
Social distancing is a key luxury attribute
New destinations can spark curiosity
Figure 37: Pandemic-related luxury travel attitudes, general population vs AHNW, January 2021
Younger travelers are finding new destinations
Figure 38: Pandemic-related luxury travel attitudes, by age and household assets, January 2021
LUXURY TRAVEL PLANNING
Travelers want control, but the stakes could be high
Figure 39: Luxury travel planning attitudes, general population vs AHNW, January 2021
Providers should make work possible, but prepare for shorter trips
Figure 40: Luxury travel planning attitudes, by age and household assets, January 2021
LUXURY TRAVEL AND SUSTAINABILITY
Luxury should take green cues from the general population
Figure 41: Attitudes toward environmental concerns, general population vs AHNW, January 2021
Sustainability is the demand of future luxury travelers
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
Data sources
Consumer survey data
Direct marketing creative
Abbreviations and terms
Abbreviations
APPENDIX – THE MARKET 
Figure 43: Luxury travel plans – CHAID – Table output, January 2021
Methodology
APPENDIX – THE CONSUMER
Figure 44: Table – TURF Analysis – Necessary luxury components, January 2021
Figure 45: Table – TURF Analysis – Luxury travel motivations, January 2021
Methodology