2022 could see an increase in holiday budgets for luxury travellers, says Hannah Free of GlobalData (Photo: Unsplash)
According to GlobalData, there has been an influx of travel trends in the luxury travel market as a result of the Covid-19 pandemic. This includes a boom in private aviation services at the high end of the market, remote working from overseas locations and demand for private buyouts of large villas or boutique hotels.
GlobalData’s latest report, Luxury Travel Market Trend and Analysis of Traveller Types, Key Destinations, Challenges and Opportunities, 2022 says that as luxury travellers have resumed travelling in both domestic and international sectors in post Covid-19 pandemic, they may start seeking experiences that are more immersive and exceptional than in previous years which would significantly lead to rise in the demand of luxury travel sector.
“With travellers determined to make up for lost time, 2022 could see an increase in holiday budgets for luxury travellers, with an uptick in demand for ‘once in a lifetime’ adventures. According to a GlobalData poll, when respondents were asked if their holiday budgets had changed due to Covid-19, 16 pc reported that their budgets were ‘a lot higher than pre-Covid-19’, while 12 pc of respondents stated that their budgets were ‘slightly higher than pre-Covid-19’,” says Hannah Free, Travel and Tourism Analyst at GlobalData.
Despite the demand for luxury travel, there is a growing demographic of socially conscious, high-net-worth consumers who have started rejecting unconcealed displays of wealth in favour of inconspicuous and responsible consumption. Their approach to luxury is driven by ethical living, artisanship, authenticity and sustainability. It seems experience is the latest currency for these holidaymakers, who seek self-fulfilment through greener travel and eco holidays, while also wanting to ‘do good’ for people and the planet. If luxury travel brands ignore this trend, it could put them at tremendous risk of total disengagement with an audience that are looking for sustainable options.
“While Covid-19 has changed many aspects of luxury travel, there are still several defining features which sets the sector apart from mass market tourism. This includes hyper-personalisation, exclusivity, unique experiences, intuitive service and the ever important ‘human touch’ element,” Free concludes.
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