The luxury travel industry itself is booming with a market size that exceeded USD 1.2 trillion in 2021
Contemporary high-end travellers seek exclusive, ‘ultra-premium’ adventures and key industry stakeholders say personalisation is key.
According to a new report by Belvera Partners, a public relations firm based in Spanish island of Mallorca , the luxury travel industry itself is booming with a market size that exceeded USD 1.2 trillion in 2021 and a projected growth rate exceeding 7 pc annually until 2030.
For example, says the report, American carrier, Delta Air Lines has recorded record profits from premium, hotels are innovating in new premium products and all-luxury airlines such as Beond and JBL are perhaps threatening big carriers.
The report adds that the need for personalisation is explained by the success of membership programme memes that offer exclusive access to curated experiences built around the personal tastes of travellers, whilst also fostering a sense of community among discerning adventurers.
According to report, the luxury boom could prove challenging for airlines, but lucrative for those with the flexibility to broaden their offerings, particularly through personalisation.
Javier Jiménez
“Established carriers must adapt by offering a truly differentiated luxury experience, beyond plush seats and champagne to include personalised services, curated in-flight experiences, and seamless connections,” says Javier Jiménez, Cofounder and COO at Airnguru, a leading provider of fare management, pricing intelligence and price automation solutions for airlines.
The statement adds that leveraging technology and data allows airlines to anticipate the needs of discerning travellers, ensuring each journey feels exclusive and unforgettable.
This also enables price optimisation of the personalised offers, crucial for a profitable business. Full-service airlines, with extensive infrastructure and diverse aircraft configurations, are well-positioned to capitalise on this opportunity and boost load factors in premium and premium-economy cabins.
However, designing and executing suitable strategies, while maintaining product and service consistency across fleets and codeshare partners, remains a significant challenge, says the report.
It adds that the luxury boom also presents a strong opportunity for the hotel space, particularly independent hotels that offer the unique ‘boutique’ experience.
Pablo Sánchez
“Large OTAs like Booking or Expedia are difficult places to differentiate and showcase unique properties. Instead, a good website, with a good booking engine, allows you to craft the right storytelling for unique properties. Of course, billboard effect is a fact, so it is key to find the right distribution channels aligned with luxury and your destinations such as Virtuoso, Black Tomato, Essentiali,” says Pablo Sánchez from Mirai, whose technology solutions enable hotels to maximise direct sales opportunities and minimise distribution costs.
“And last but not least, you need a good marketing plan, starting with a clear definition of the audience and focusing on the platforms and moments where you can reach them. Easy to say, not so easy to execute, unless you partner with experts who have experience in direct sales and who have no conflict of interest in also benefitting from selling indirect solutions as long as they bring real value to the hotel and help it optimize its distribution and profitability,” Sánchez adds.
The report says that a great way to reach luxury travellers is through affiliate marketing platforms that give access to travel bloggers.
Rami Nuseir
“Luxury travel bloggers are the ultimate tastemakers for today’s discerning travellers, almost no one escapes their influence. These digital globetrotters curate aspirational experiences, offering a picturesque window into the world’s most exquisite destinations and opulent accommodations,” says Rami Nuseir, Head of Marketing at Stay22, which offers affiliate revenue tools for travel bloggers.
“By partnering with the right bloggers who resonate with a brand’s values and target audience, suppliers or online sellers like OTAs can create highly effective campaigns that go beyond traditional advertising, and are far more persuasive than generic marketing messages,” adds Nuseir.
Evren Oktay
“When it comes to making a luxury booking a lot of the time the traveller is relying on a retail travel agent to advise them, so make sure that your B2B distributor has access to retail travel agents in the markets that you are most likely to see bookings coming from. Then work really hard with them to make sure that their sales team understands your product,” says Evren Oktay from Pax2Night, an accommodation bedbank that is part of Yuppi Travel.
The statement adds that the resurgence of luxury travel is exciting for travellers but presents prudent considerations for corporate travel managers according to Andres Fabris, the CEO of Traxo, the solution for corporate travel booking visibility.
Andres Fabris
“The blurred lines between business and leisure could see an increase in bookings, with employees extending work trips to indulge in luxury travel in their personal time. Bleisure trips can boost morale and productivity but also raise concerns about duty of care and expense management,” says Fabris.
“That’s where technology comes in to bridge the gap. Employers need modern corporate travel software that can support bleisure travel while maintaining awareness of an employee’s whereabouts during business trips, even if those trips extend into personal time. It’s also prudent to leverage complete visibility into on- and off-channel bookings to monitor overspending across the travel programme meme,” Fabris adds.
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