Luxury Travel Journeys to the Next Level
By Gary Bowerman
OK, here is today’s travel trivia question; what is the connection between St. Petersburg, Kuala Lumpur, Beirut, and Buenos Aires?
The answer is these cities are all cited in a new report – along with Moscow, Prague, Budapest, Abu Dhabi, Marrakesh, São Paulo, Rio de Janeiro, Macau, Kuala Lumpur, Bangkok, Taipei and Seoul – as emerging city destinations that attract luxury travelers with a mix of cultural activities and shopping.
Having largely beaten the economic blues affecting the rest of the travel industry over the past three years, luxury travel demand continues to grow and diversify. The ultra-rich travel set represents an exclusive, demand inelastic segment, and – like any growing demographic – it is searching for new experiences and destinations.
The perception of luxury is also continuously evolving. Published in June by the International Luxury Travel Market (ILTM) and Horwath HTL, The Future of Luxury Travel global trends report notes that in recent years, luxury travel has been “aligning more closely with traditional luxury, like fashion and jewelry, and following the same trends.” In addition, there has been a noticeable “move away from ostentation toward authenticity in the travel experience, and a call for sustainability and environmental conservation as an integral part of the offerings for affluent travellers.”
Five key trends are noted in the report that are likely to impact the future development of the luxury travel sector: 1) Emerging destinations will gain in importance; 2) The need for personalisation will continue to impact the luxury travel industry; 3) Simplicity and seamless service rank highly among the main expectations of travelers; 4) The luxury travel industry will continue to recover from the financial crisis; and 5) Awareness of value will impact travel decisions.
As with the luxury goods sector, the demand for luxury travel is expected to grow, especially in relation to emerging BRIC (Brazil, Russia, India, and China) economies. Increased demand from these nations could mean that emerging luxury destinations grow at a faster pace than established hotspots.
In 2011, the ILTM report rated Europe, particularly France and Italy, as the top luxury destination, cited by 41% of survey interviewees. Asia/Pacific followed in second place, cited by 27%, with top destinations being the Maldives, Japan, and India. Destinations in the Middle East and Africa garnered 18%. In the Americas, the United States, especially California and Hawaii, dominated at 8%, followed by the Caribbean (Caribbean cruises, Bermuda) and Latin America (Argentina) at 6%.
While cruising and resort vacations remain ever popular, luxury travelers who prefer off-the-beaten-path experiences are increasingly seeking destinations offering large natural spaces and/or new regional cultural experiences.
“South Africa, Namibia, Kenya, Botswana, and Zambia stand out as most popular for adventure tourism in the luxury market. Uganda and Rwanda (gorilla sanctuary) are reportedly gaining in popularity,” the report says. Worldwide, emerging adventure destinations include Iceland, Ethiopia, Utah, Bhutan, Easter Island, Myanmar, Peru, Greenland and Antarctica.
The complete The Future of Luxury Travel report is available at www.iltm.net/asia/files/the_future_of_luxury_travel_report.pdf
This blog has been commissioned by AmEx.
About Gary Bowerman: Oxford-born Gary Bowerman has travelled the world in search of a good story. After cutting his teeth in legal and tax publishing in London, Gary moved on to edit international business and travel titles before relocating to China in 2004. Resident in Shanghai, he has recently been a contributor to CNN Traveller, Business Traveler,CNBC Europe Business, New York Times, Travel & Leisure and South China Morning Post. Editor of the Singapore Highlights and Beijing Highlights guides, Gary is also one of the founders of Hong Kong and Shanghai-based media and marketing communications agency Scribes of the Orient.
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