Luxury Travel Market May See Growth in 2022 as COVID-19 Stimulates New Consumer Trends, Says GlobalData

In the luxury travel market, there has been an influx of consumer travel trends following the COVID-19 pandemic. This includes a boom in private aviation services at the high end of the market, overseas remote work and demand for private takeovers of large villas or boutique hotels, GlobalData finds.

The latest report from leading data and analytics company,’Luxury Travel Market Trend and Analysis of Traveler Types, Key Destinations, Challenges and Opportunities, 2022 Update‘ reveals that as luxury travelers begin to travel both domestically and internationally in the wake of the COVID-19 pandemic, they may begin to seek out more immersive and exceptional experiences than years previous ones.

Hannah Free, travel and tourism analyst at GlobalData, comments: “With travelers determined to make up for lost time, 2022 could see an increase in vacation budgets for luxury travelers, with an increase in demand for ‘once in a lifetime’ adventures. According to a GlobalData* survey, when respondents were asked if their vacation budget had changed due to COVID-19, 16% said their budget was “much higher than before COVID-19”, while 12% of respondents said that their budgets were “slightly higher than before COVID-19”.

Source: GlobalData Plc
Source: GlobalData Plc

Despite the demand for luxury travel, there is a growing number of socially conscious and affluent consumers who reject overt displays of wealth in favor of discreet and responsible consumption. Their approach to luxury is guided by ethical living, craftsmanship, authenticity and sustainability. Experience is the new motto for these vacationers who are looking for fulfillment through greener trips 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 huge risk of completely disconnecting with an audience looking for sustainable options.

Free concludes: “While COVID-19 has changed many aspects of luxury travel, there are still several defining characteristics that set the mass tourism sector apart. This includes hyper-personalization, exclusivity, unique experiences, service intuitive and the increasingly important element of the “human touch”.

*GlobalData survey – completed January 17, 2022 (428 responses)

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