In Euromonitor’s Voice of the Consumer: Travel Survey, the future traveller is represented by eight different segments in terms of travel preferences, behaviours and values in 2023. Among the list are Luxury Seekers, defined as frequent travellers taking at least two international leisure trips per year, who seek quality products and services, think it is important that others see them doing well, and believe that it is important to spend money on experiences.
Regarding Luxury Seekers, the highest penetration of these consumers is firstly in the Middle East and Africa, followed by Asia Pacific, and Western Europe in third place.
The Middle East especially dominates the list of top countries where Luxury Seekers live, including Saudi Arabia (27% of respondents) and the UAE (25% share)
Source: Euromonitor International’s Voice of the Consumer: Travel Survey 2023
India is the country that enjoys the highest number of Luxury Seekers according to Euromonitor’s Voice of the Consumer: Travel Survey with 31% penetration of respondents identified in this bracket.
Beyond the stereotypes: The fresher face of luxury travel demands faster digital adoption
Counter to stereotypes, Luxury Seekers are highly digitally savvy with 74% booking travel online, yet appreciate expert in-store advice given that luxury travel prices are higher and greater levels of customer service and personalisation are expected.
It is important not to underestimate the power of loyalty: Luxury Seekers are the largest segment using loyalty schemes and membership cards to receive exclusive deals and perks, enjoying being rewarded for their custom – 34% vs the global average of 24% of respondents as revealed by Euromonitor’s Voice of the Consumer: Travel Survey 2023.
It is interesting to see that the highest penetration of Luxury Seekers is in the Millennials age group, those aged 30-44, followed by Gen Z, aged 15-29, in line with the overarching trend for wealth to migrate to younger generations over the 20 years to 2040. By 2040, Millennials are forecast to account for 36% of the population earning over USD250,000 (amounting to 26.1 million people), compared to 24% for Baby Boomers.
Luxury Seekers look for exclusive airport lounges, priority security, priority boarding and, often, private jets to remove the hassle factor to make the travel experience more efficient and enjoyable. With biometrics helping to provide an end-to-end paperless journey, this is fast becoming a reality.
Ahau Collection – a luxury hotel group in Mexico – and Backstage Solutions joined forces to create a new loyalty programme, which includes NFTs that offer perks and experiences for visitors and members. By embracing digital assets, the company is rethinking the way loyalty programmes operate and appeal to digitally-savvy travellers.
Shared family moments demand exclusivity and privacy
Luxury Seekers’ typical travel companions versus the global average from Euromonitor’s Voice of the Consumer: Travel Survey shows that family is a top priority.
72% of Luxury Seekers travel with a partner or spouse in 2023 and 56% with their children, so the multigenerational trend is alive and well
Source: Euromonitor International’s Voice of the Consumer: Travel Survey 2023
Enjoying time away together as a family reflects the importance of shared moments away from daily life, where families can come together for celebration.
Clearly, building new experiences that create lasting memories is an important driver behind why Luxury Seekers travel mainly with family, compared to only 4% who travel solo. Travel operators and destinations would be wise to ensure that their services cater to the diverse needs of multigenerational family groups, and that quality time and privacy are guaranteed.
Redefining luxury travel to match Luxury Seekers’ lifestyles, purpose and wellness needs
Luxury brands are experiencing a redefinition, aligning themselves with the lifestyle category. While these lifestyle extensions serve as additional streams of untapped revenue, they also allow luxury fashion and beauty brands to meet evolving consumer priorities, identify new ways to engage customers and, given their ability to be integrated into customers’ daily lives, be a way to invest in long-term brand equity and a way to boost both tangible and intangible assets.
This is giving further opportunity for luxury fashion brands to side-step into this area by venturing into luxury hospitality with branded cafés, restaurants, food and wine pop-ups and naturally luxury hotels, spas, wellness and residences.
Some leading luxury and fashion brands traditionally linked to fashion and automotive sectors, such as Porsche, Bugatti and LVMH, are embracing the lifestyles trend and have entered the real estate market, providing branded residences tailored for the ultra-wealthy.
38% of Luxury Seekers say that they will pay between 30% and 50% more for sustainable travel features such as energy-efficient services in 2023, whilst 26% would pay over 50% to avoid flying and find less carbon-intensive transport means. Yet, there is the challenge of consumers feeling overwhelmed by the climate emergency, suffering fatigue about how to do the right thing when it comes to having a positive impact.
Combining purpose, passion and positive impact together, luxury brands can deliver the unique, authentic and exclusive experience that luxury travellers are looking for. Yet, at the same time, they can ensure that decarbonisation takes place by adopting various pathways, from waste and water management to energy, transport, materials and supply chain sourcing, as well as ensuring social inclusion for communities and cultures.
Iberostar operates luxury and upscale hotels and is a global leader in sustainable travel and hospitality. Iberostar’s Wave of Change strategy outlines 11 different pathways to decarbonise and reduce its carbon footprint by 58% by 2030 across Scope 1, 2 and 3 emissions throughout the supply chain. Including electrification and renewables, it will use nature-based solutions such as mangrove restoration to reach zero. The luxury sector has the responsibility to lead the way, due to its innate higher carbon intensity.
Learn more about luxury travel in our report, Elevating the New Luxury Travel Experience, to understand the way that the sector is responding to the latest luxury traveller trends.