28% of Global consumers’ holiday budgets for future budgets changed due to Covid-19
In the luxury travel market, there has been an influx of consumer travel trends 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, finds GlobalData.
The leading data and analytics company’s latest report, ‘Luxury Travel Market Trend and Analysis of Traveler Types, Key Destinations, Challenges and Opportunities, 2022 Update’ reveals that as luxury travelers resume traveling both domestically and abroad in the aftermath of the COVID-19 pandemic, they may begin to seek experiences that are more immersive and more exceptional than in previous years.
Hannah Free, Travel and Tourism Analyst at GlobalData, comments: “With travelers determined to make up for a lost time, 2022 could see an increase in holiday budgets for luxury travelers, 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% reported that their budgets were a lot higher than pre-COVID-19’, while 12% of respondents stated that their budgets were ‘slightly higher than pre-COVID-19’.”
Despite the demand for luxury travel, there is a growing demographic of socially conscious, high-net-worth consumers who are rejecting overt displays of wealth in favor of inconspicuous and responsible consumption. Their approach to luxury is driven by ethical living, artisanship, authenticity and sustainability. Experience is the new currency for these holidaymakers, who seek self-fulfillment through greener travel and eco holidays while 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 disconnect from an audience that is looking for sustainable options.
“While COVID-19 has changed many aspects of luxury travel, there are still several defining features that set the sector apart from mass market tourism. This includes hyper-personalization, exclusivity, unique experiences, intuitive service and the ever- important ‘human touch’ element.”