ALTIANT Global Luxury AND ASSET MANAGEMENT (GLAM) MONITOR
Q1 2022 RELEASE
I
Q1 2022 RELEASE I
Quarterly GLAM Monitor: Q1 2022
Release date: May 2022
Lars Long - Founder & CEO, Altiant
“Welcome to the newest edition of Altiant’s Global Luxury and Asset Management (GLAM) Monitor. The monitor focuses on the behaviours and sentiments of our panel of validated global affluent/High Net Worth Individuals.
We have now collected more than three years’ worth of data in this luxury tracker. Some questions were retired, a few new questions and answer codes were added in Q4 2021 and we can now start to see how these evolve over the course of 2022. We hope that the findings continue to assist your business strategies and decisions in the years ahead.
The monitor contains two main elements for public use. Firstly, you’ll find here the most recent results and key takeaways from this quarter of study. And secondly, all of the data is available within Tableau so that you can reformulate the results according to your own preferences. Age, gender, region and household income filters will enable you to interact with the data and cut it in different ways to identify key differences and trends.
The impact of Covid-19 is likely to continue being evident in our tracker in the coming quarters, especially as infection rates fluctuate. Most developed countries have now vaccinated the majority of their adult populations, but the need for boosters will continue to mean that some consumers exercise caution. Hard-hit categories such as retail and travel remain under pressure but are showing clear signs of recovery now.
We welcome the free and fair use of our data to meet your individual and business objectives, only asking that you clearly link your readers to the source of the data whenever applicable. As we publish additional iterations, trends will continue to strengthen, enabling you to further enhance your understanding of global luxury consumers. In the event you have any questions about the data, please contact us at glam@altiant.com.”
INTRODUCTION TO THE RESEARCH
All data presented in this GLAM monitor has been sourced from Altiant’s manually validated in-house panel of Affluent and High Net Worth Individuals (HNWIs), Luxury Opinions©. This iteration reports on Q1 2022, but will also include trended data from the trackers’ previous quarters. A handful of questions have been retired from the survey and will no longer be tracked. They are being replaced with new questions on more contemporary and fast-moving issues. For any additional questions about this research, please contact glam@altiant.com.
For the methodology, we have continued to survey different members of our global panel whenever possible. All respondents can only answer the survey once a year at most. 486 affluent/HNWIs were surveyed between January and March 2022, with 174 from Europe, 158 from North America and 154 Asia Pacific. 34% of this quarter’s sample was aged 18-39, with 66% aged over 40. The sample was split 49:51 in terms of gender (male:female). Since starting the tracker in Q3 2018, we have now conducted almost 6,900 interviews, 41% of which were among aged 18-39s (59% over-40) and with a gender split of 49:51 male:female.
Normalised to $US, the median household income in this quarter was just over $270k (exchange rates as per 31st March 2022). This brought the average across all study quarters so far to $292k.
Note: Percentages in this report indicate survey results combining the last four quarters studied so far unless otherwise stated.
RESEARCH SAMPLE
KEY QUARTERLY CHANGES
· Only 12% expect to spend less on travel over the next year, while 60% expect to spend more, showing that the appetite to spend on luxury holidays continues to rebound strongly.
· More than two thirds (68%) say that they are now either somewhat or very confident to travel on a plane, up from 59% last quarter.
· Uptake of electric/hybrids vehicles is being driven by under-40s, with 56% having already made the switch to these vehicles (vs 30% of over-40s).
· The Russia/Ukraine conflict is likely to be the main reason why perceived stability of the global financial system fell to a new low of 17% in Q1, lower even than in the earliest months of the pandemic.
· The conflict has also led to a more pessimistic view of stock market performance, with 44% expecting a downturn in performance over the next year, much higher than the 25% in Q4 2021.
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LUXURY PURCHASES
PAST LUXURY PURCHASES (Past 12 Months)
“In which of the following categories have you purchased a luxury brand or service within the past year?”
Total Unfiltered Base: 6,900 global affluent/HNWIs | Source: LuxuryOpinions®/AltiantBefore 2020, travel numbers saw little quarterly variation in our tracking study. Despite progress being made with vaccinations, the recovery of travel continues to be hampered by Covid-19. Most countries have now reopened their borders to international travellers, although outbreaks such as in China have led to a reclosing and reimposition of shutdowns. As such, many wealthy individuals have remained cautious about taking holidays, especially those further afield (see Section 4).
The recovery in travel can be seen in the share of wealthy individuals saying that they had taken a luxury holiday within the past year, which continues to nudge upwards. In Q1 2022, 70% had travelled within the past year, with 47% having done so multiple times. There is a way to go before these numbers return to pre-pandemic levels, but the trend is certainly upwards. Over the last few quarters, Europeans have been the least prolific travellers. However, this shifted to APAC travellers in Q1 as only 41% took more than one holiday over the past year, rising to 45% of Europeans and 54% of Americans.
Prior to 2020, designer fashion trailed a short distance behind tourism for purchasing penetration. However, fashion (and a few other categories) have since moved ahead of tourism and 80% said that they had bought a high-end fashion item within the past year, with 58% making multiple purchases. High-end electronics (81%), alcohol (77%) and leather goods (74%) have also remained widely purchased and have moved ahead of tourism since the pandemic started. Under-40s and Americans are the most likely to make multiple purchases in all three of these categories.
Leather goods and alcohol see a clear skew in purchases towards women, while men are more likely to buy watches and use wealth management services. Wealth management continues to perform well, with 74% using these services within the past year. Luxury automotive remains the least likely category to have been purchased within the past year (42%), marginally behind art and collectibles (45%) which was introduced to the tracker in Q4 2021.
Luxury Purchase Intent (Next 12 Months)
“Do you think you will make purchases in any of these categories within the next year?” - Active buyers, past 12m
Total filtered Base (active buyers) of 6,900 global affluent/HNWIs | Source: LuxuryOpinions®/AltiantAutomotive is the category which buyers expect to cut back on most in 2022, with a third (33%) expecting to do so (although 35% do expect to spend more). Elsewhere, planned purchasing trends for 2022 look a little more positive. No other category has more than a quarter of its users expecting to spend less in the year ahead, with jewellery being the next highest (23%).
Many affluent individuals are poised to spend again as Covid-19 continues to come under control from vaccinations and milder variants. Travel remains the main beneficiary, with many having already slashed their travel spend over the past two years. Only 12% expect to spend less on travel over the next year, while 60% expect to spend more, showing that the appetite to spend on luxury holidays continues to rebound strongly.
Wealth management also appears to be well placed. Just over half (51%) of investors expect to invest more in the year ahead, indicating returning confidence but also a need to plan financially for unforeseen events such as pandemics or international conflict. Many of the other categories are now showing a comfortably higher share of buyers who plan to spend more in the coming year than they did in the preceding 12 months. This suggests that many wealthy individuals are feeling more bullish about a return to normality and that this might be manifested in higher spending. Designer fashion, alcohol, watches and high-end electronics are well-set to see strong rises in 2022. Meanwhile, 42% of current art and collectible buyers – introduced for Q4 2021 – expect to buy more in the year ahead, perhaps indicating a growing view that these are savvy investments.
“You mentioned that you have not purchased luxury items from the following categories within the last year/Do you think you will make purchases in any of these categories within the next year?”
Nevertheless, art and collectibles is comfortably the most likely category to be unable to entice new customers over the next year; 81% of non-users do not expect to begin doing so in 2022. Luxury automotive is the next in line, with 38% of non-car buyers not expecting to buy a buy a car in 2022 (although 21% do expect to do so). Watches and jewellery may also struggle to bring new customers into the category, with around a quarter of current non-users not planning to become active buyers. Travel may see further benefits from new or returning customers, with 17% of last year’s non-travellers planning to do so in the year ahead.
PURCHASE CHANNELS
“Within the past 12 months, how have you purchased luxury brands or services?”
Total Unfiltered Base: 6,900 global affluent/HNWIs | Source: LuxuryOpinions®/AltiantCovid-19 will continue to fundamentally influence how shoppers buy products and services, both in 2022 and beyond. Stores in many countries are now fully open again, albeit sometimes with regulations such as face masks and social distancing in attempts to stop potential transmission. While confidence is returning, some affluent consumers may remain wary of face-to-face interactions and favour online shopping instead.
Prior to Covid-19, the share of consumers buying luxury goods/services in a physical store hovered around the 85% mark. This fell as low as 67% in Q2 2021 but has recovered since and stood at 76% in Q1. At the same time, the past two years have seen a significant uplift in online luxury shopping. Reflecting this change, 71% said that they had purchased luxury goods or services via their computer or laptop, rising to 80% of Americans.
Research has shown that while mobile phones are effective in generating website traffic, these visits often do not convert to actual purchases. From Q4 2021, we have split out online purchases via mobile phones and tablets. 47% reported to buying luxury goods online via their mobile phone, while 19% did so via a tablet. Americans and Asians are more likely than average to shop via their mobile, while only 31% of Europeans do so.
Under-40s are much more likely than over-40s to shop via a mobile phone (62% vs 39%) and a little more via a tablet device (23% vs 17%). It is important for brands to continue delivering reliable and user-friendly online platforms, particularly for smaller screens, as the popularity of online shopping should remains buoyant in the coming years.
SOCIAL MEDIA INTERACTIONS
“Have you participated in any of the following activities in relation to luxury brands and services on social media in the past 3 months?”
Total Unfiltered Base: 6,900 global affluent/HNWIs | Source: LuxuryOpinions®/AltiantIn line with online retail prospering, social media has also become more important for many luxury brands. Engaging and sharable content proved to be a lucrative sales channel for brands while individuals were in lockdown. Half of the Q1 sample said that they had liked or recommended a brand to family, friends or colleagues or followed a brand. In both cases, Americans, under-40s and women continue to be the most likely to do so. Elsewhere, almost a quarter made purchases via social media (24%) or sent a private message to a brand (21%). Once again, women and under-40s are the most likely to do so.
A new metric was introduced in Q4 2021, that of following a social media influencer. Many brands are allotting more of their marketing budgets to influencers, and with 30% of wealthy individuals saying that they had followed one within the past three months, this can be a lucrative option if well-chosen partners are utilised. Under-40s (38%) and women (40%) are the most likely to do so. Just over a quarter (26%) reported that they made none of these social media interactions.
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LUXURY & SUSTAINABILITY
Attitudinal Statements
“Which of the following statements about luxury do you agree with?”
Total Unfiltered Base: 6,900 global affluent/HNWIs | Source: LuxuryOpinions®/Altiant
As of Q4 2021, this question was altered due to the majority of statements showing minimal quarterly variance. The Covid-19 pandemic has led to many reassessing their purchases of luxury goods, often instead preferring to spend their money on luxury experiences. 36% say that they prefer luxury experiences over goods/products, rising to 43% of Americans. As seen in Section 1, travel is bouncing back after being particularly badly hit by the pandemic. Sustainable and ethical travel will be at the heart of this recovery: 40% say that they will prioritise responsible travel in the future, with a slight skew towards under-40s (44% vs 37% of over-40s).
In a similarly green vein, growing numbers are opting to rent items rather than buying them, particularly in categories such as fashion and jewellery. Sustainability and tapping into the circular economy is at the heart of this growth, although that only 11% are interested in renting clothes indicates that this growth might be somewhat gradual. Meanwhile, 21% say that they are interested in buying second-hand clothes, with women much more likely than men to be interested in buying second-hand (28% vs 14%).
Increasing numbers of wealthy individuals are also gravitating towards brands with a truly sustainable ethos and positioning. 58% say that they are interested in buying sustainable products such as electric cars or organic clothing. Recent research from Altiant found that many wealthy individuals are concerned about climate change and are already taking steps to reduce their carbon footprint and environmental impact. Within this GLAM data, 51% said that they are concerned about the climate crisis and 49% are trying to reduce their carbon footprint in everyday life.
Luxury & Sustainability: The Importance of Sustainability
“How sustainable/environmentally-friendly do you think the following are? / And which of these do you currently do?
Total Unfiltered Base: 6,900 global affluent/HNWIs | Source: LuxuryOpinions®/AltiantThe ongoing climate crisis means that many wealthy individuals are now scrutinising their own actions and how they are contributing to, or alleviating, this issue. Perceived green credentials can be highly influential, as explored in this new question which was introduced in Q4 2021.
The growth of the rental and second-hand market has been built upon being environmentally-friendly. While some studies have called into question the legitimacy of these claims, consumer perception is ultimately key. It is evident that this is broadly positive as three in five (60%) think that renting goods is either somewhat or very environmentally-friendly, rising to 69% for buying goods second hand. Almost half 46% say that they are already buying goods second-hand, while only 10% are currently renting.
Another significant behavioural change is the increasing need to find alternatives to petrol for fuel, especially in light of the Russian invasion of Ukraine. The growth of electric and hybrid cars has been broadly strong, albeit with some ongoing concerns about the convenience of charging and reliability of batteries for longer journeys.
Nevertheless, 40% think that these cars are very environmentally-friendly, rising to 48% of Americans, with a further 28% thinking they somewhat are. 39% of wealthy individuals have already made the switch to electric or hybrid cars, rising further among under-40s (56%) and Asians (49%). Uptake will almost certainly continue rising in the coming quarters as the technology of these cars improves and costs come down.
Luxury & Sustainability: Trading up for Sustainability
“Would you be prepared to pay more for a product which positions itself as sustainable luxury?”
Total Unfiltered Base: 6,900 global affluent/HNWIs | Source: LuxuryOpinions®/AltiantMany affluent consumers are seemingly prepared to back up their views about environmental protection and sustainability with their money. Only 17% of the Q1 sample are entirely unprepared to spend any more for sustainable/ethical luxury products, a figure which falls to just 9% of under-40s. Overall, 48% are prepared to spend up to 10% more, which could be a sweet spot for brands to justify a small price premium. These figures are broadly on a par with the previous quarters.
The remaining 35% are prepared to spend more than 10% extra, with 7% saying they are even prepared to spend more than 25% extra for sustainable/ethical luxury products. Trading up for sustainable goods resonates with under-40s more than over-40s, especially for the 10-25% extra bracket. Two in five Americans and Asians are willing to spend 10% or more extra for sustainability, a little ahead of the European response (29%).
Luxury & Sustainability: Sustainable Luxury Champions
“Are there any luxury brands in any industry which you think are good examples of sustainable luxury? If so, which companies?”
Total Unfiltered Base: 6,900 global affluent/HNWIs | Source: LuxuryOpinions®/AltiantOver each of the past three years, a handful of luxury brands have stood out as the most likely to be cited as sustainable luxury operators by our respondents. The likes of Louis Vuitton, Stella McCartney, Gucci, Louis Vuitton and Tesla consistently garner a high share of the response, with these brands also being among the most cited within Q1.
Once again, Tesla stands out for having comfortably the greatest number of mentions at 18%. Louis Vuitton (7%), Gucci (7%) and Stella McCartney (6%) are the only other brands which received more than 25 mentions across the Q1 sample. Fashion brands such as Hermès, Prada and Christian Dior are among the next most-cited brands, each securing around 10 mentions. These companies are increasingly looking to sharpen their green credentials, for example by using alternative materials. Rental companies such as Rent the Runway are also gradually picking up more mentions with each passing quarter.
FOCUS ON FINANCE
Global Financial System Stability
“How stable do you feel the global financial system currently is?”
Total Unfiltered Base: 6,900 global affluent/HNWIs | Source: LuxuryOpinions®/AltiantCovid-19 has had a major impact upon consumer confidence in global finances, adding to uncertainties such as Brexit, the climate crisis and now the Russia/Ukraine conflict. From 37% pre-pandemic, the share of respondents who felt that the financial system was either very or somewhat stable plummeted to just 20% in Q2 2020, a new low point across all quarters of study.
The past 18 months had seen this share recover slowly towards pre-pandemic level to reach 29% in Q4 2021. However, Q1 2022 saw perceived stability fall back again, down to just 17% and with an equally low response across age and region. This is a likely reflection of the ongoing concern about the Russia/Ukraine conflict, something which we recently researched in another short piece which can be found here.
Only 14% now adopt a neutral/uncertain position (down from 22% in Q4 2021), while there was a 20-percentage point rise (up to 68%) of those who think that the financial system is very or somewhat unstable. At 32%, the share of people answering ‘very unstable’ remains comfortably higher than pre-Covid levels and in line with Q2 2020.
Stock Market Knowledge
“How knowledgeable do you think you are about topics related to the stock market?”
Total Unfiltered Base: 6,900 global affluent/HNWIs | Source: LuxuryOpinions®/AltiantSelf-claimed stock market knowledge has historically shown little quarterly variation in our study, hovering around the 75% mark. After reaching a new high of 82% in Q1 2021, this has since fallen back a little and stood at 75% in Q1, with 23% claiming to be very knowledgeable. Men (84%) and Americans (80%) are the most likely groups to state that they are knowledgeable as per the Q1 data. 22% feel that they only have very little stock market knowledge, while only 3% say they have no knowledge at all. Women are more likely than men to profess having little or no understanding of the stock market (34% vs 16%).
Regional Stock Market Confidence
“How do you think the stock markets in your region will perform during the next 12 months when compared to the past 12 months?”
Total Unfiltered Base: 6,900 global affluent/HNWIs | Source: LuxuryOpinions®/AltiantStock market confidence follows a very similar pattern to perceived stability in the global financial system. Results had been slowly recovering from a low point of 33% in Q2 2020 to reach around 50% in recent quarters as a more bullish stance proliferated. However, the Russia/Ukraine conflict has had a stark impact on optimism levels, with only 34% expecting an improvement in performance in the next 12 months and just 6% expecting their stocks to perform much better. The share who believe that their stock market performance will remain about the same also fell back to 22% in Q1.
In turn, those expecting a downturn in performance in the year ahead jumped to 44%. While this is not as low as the nadir of 53% in Q2 2020, the Q1 figure comes after a pandemic-affected year in which stocks may have already suffered. Only 11% think their stocks will perform much worse in the year ahead, with 33% adopting a cautiously bearish position, perhaps reflecting the uncertainties surrounding the ongoing conflict.
PORTFOLIO MANAGEMENT
“Within the next 90 days, do you expect to make significant changes to your investment portfolio?”
Total Unfiltered Base: 6,900 global affluent/HNWIs | Source: LuxuryOpinions®/AltiantIn response to matters such as pandemics and international conflicts, we have introduced a new question about respondents’ investment plans for the next quarter. A third (33%) said that they expected to make significant changes to their portfolios within the next 90 days, rising to 38% of Asians. On the other hand, 45% did not think they would do so, with over-40s more likely to keep their investments unchanged, while 22% were unsure. The overall results in Q1 2022 are almost identical to the preceding quarter, although there have been some small shifts among the demographic groups.
Investing in Cryptocurrencies and NFTs
“Please select one of the following options in relation to your interest in virtual cryptocurrencies like Bitcoin and Ethereum.”
Total Unfiltered Base: 6,900 global affluent/HNWIs | Source: LuxuryOpinions®/AltiantCryptocurrency investment continues to attract a high level of media interest as prices fluctuate. This media coverage, and the rise of non-fungible tokens (NFTs) helped boost the value of many cryptocurrencies in the second half of 2021, particularly Bitcoin and Ethereum. The raised profile means that only 9% are now entirely unfamiliar with cryptocurrencies.
Typically hovering around the 20-30% mark, the share of long-term crypto investors stood at 26% in Q1 2022. Americans (41%), Under-40s (34%) and men (34%) are the most likely long-term investors. Meanwhile, the share of short-term investors has stabilised around the 15-20% mark, standing at 17% in Q1. This continues to peak among Asian respondents (27%), suggesting that they are the most conservative investors. However, the Chinese government banned all cryptocurrency trading and mining in September 2021 which may impact numbers here in the coming quarters.
Elsewhere, more companies and even local authorities are starting to accept cryptocurrencies for payments, meaning the market could also attract new investors. Last year, Philipp Plein became the first major fashion label to accept cryptocurrency as an official payment option. More recently, Off-White permitted the use of cryptocurrencies in the London, Milan and Paris stores. Just over a quarter (29%) of the Q1 sample say they are current non-investors but might be interested in doing so, while only 19% do not currently invest in them and do not think they will do so in the future.
“Which cryptocurrencies do you currently invest in?”
Total Unfiltered Base: 932 global affluent/HNWIs | Source: LuxuryOpinions®/AltiantBitcoin remains the most popular currency, with two thirds (67%) of the investors in the Q1 sample doing so. While some are single coin investors, many also dabble in a few others, most commonly Ethereum (35%). Dogecoin (7%), Shiba Inu (5%) Cardano (4%) and Ripple (3%) are among the many other currencies cited by respondents. In total, 40 different coins were mentioned in Q1, reflecting the rapidly expanding crypto market.
“Please select one of the following options in relation to NFTs.”
Total Unfiltered Base: 932 global affluent/HNWIs | Source: LuxuryOpinions®/AltiantNFTs are still a new concept, but this question will aim to track the rapid changes in this market, and indeed of the wider metaverse. It is unclear how this market will evolve, with stories such as the failure to sell NFTs such as Jack Dorsey’s first tweet potentially deterring some investors. As of Q1 2022, only 12% say that they had previously purchased NFTs, rising to 18% of under-40s.
Nevertheless, the market is well placed to grow in the coming years as 32% are interested in buying them, with under-40s the most likely entrants. Almost a third (32%) have not purchased NFTs and are not intending to do so, while 24% are entirely unfamiliar with them. Women and over-40s are the least likely to be aware currently. These numbers are broadly level with Q4 2021, but we will certainly see growing awareness of NFTs in the coming quarters and years.
FOCUS ON TRAVEL
Luxury Travel Experiences
“Which of the following have you done while on holiday within the past three years?”
[Note, this question has been changed from a three-year time period, to one-year, in response to the Covid-19 pandemic]
Total Unfiltered Base: 6,900 global affluent/HNWIs | Source: LuxuryOpinions®/Altiant[Note, in Q4 2021 this question was from a three-year time period to one-year, in response to the Covid-19 pandemic]
Luxury remains important right from the start of our respondents’ holidays, including at the airport: 39% travelled by business or first-class and 40% used a VIP waiting lounge as per the Q1 data. 5* or more hotels are still highly popular with affluent travellers, used by 52% and rising to 61% among under-40s. Meanwhile, 35% stayed in a suite/penthouse room and 26% rented a beachfront villa. Fine dining (54%) and room services/concierges (39%) also appeal to many affluent travellers. Americans are the most likely to have treated themselves on their luxury holidays in various ways, particularly for travelling by business/first class, staying in a penthouse/suite or using room service.
Almost a quarter (24%) have had a private transport experience such as a helicopter ride within the past year. These are likely to remain popular in the coming quarters as the wealthy look for holidays which continue to provide isolation and a degree of distance from infection risks.
Spas had been used by almost half (49%) of our sample in 2021, with these facilities appealing to both genders and age cohorts (albeit to Europeans, under-40s and women the most). Wellness tourism continues to flourish as more luxury hotels acknowledge the appeal of relaxation facilities such as spas. These venues are likely to be particularly attractive and one of the main beneficiaries as travel recovers and travellers switch their attention to their own physical and mental health.
Visiting wellness retreats is one of the two new metrics which were introduced for tracking from last quarter. 23% say that they have been to one of these over the past year, rising to 30% of under-40s. The other new introduction is having shopped in a duty-free store, for example at airports: 41% said that they had done so over the past year, rising to 49% of under-40s. Most of these results are broadly flat against the previous quarter.
Holiday Booking Intentions
“Which of the following types of holiday are you likely to take within the next year?”
Total Unfiltered Base: 6,900 global affluent/HNWIs | Source: LuxuryOpinions®/AltiantTravel is showing clear signs of recovery, but remains vulnerable to changes in countries’ policies and the prevalence of Covid-19. The virus will obviously continue to have a significant impact, reducing the frequency and variation of luxury holidays in the year ahead.
Regional travel remains more popular than going further afield among our sample. Indeed, this has been exacerbated by the impact of the virus, with fewer wealthy travellers willing to take longer-haul journeys. Security queues at airports and potential quarantines/self-isolation periods mean that many are instead opting for more domestic trips, or going to countries close to their residence. This is likely to continue throughout 2022, and perhaps even further ahead.
Different holiday types see wide variance in popularity across the regions, but all types have seen a downturn in interest since the outbreak of Covid-19. City breaks in Europe and the US were hit particularly badly, a likely reflection of travellers’ ongoing concerns about being in overcrowded places where their exposure to Coronavirus may be elevated. City breaks, sightseeing/tourist holidays and family holidays within Europe are recovering but remain lower than pre-Covid levels.
Rural/countryside breaks (e.g. glamping) and family breaks look likely to be among the most resilient holiday types in the coming year, reflecting the probable desire for many travellers to remain close to family and distanced from crowds and strangers. Wellness holidays/retreats are also likely to continue seeing an upturn in popularity as wealthy individuals look to improve their physical and mental health after the stresses of the past two years.
Post Covid Luxury Travel
“How confident are you to now engage in the following activities specifically while on a holiday?”
Total Unfiltered Base: 6,900 global affluent/HNWIs | Source: LuxuryOpinions®/AltiantDespite many wealthy respondents now having been fully vaccinated and boosted, a degree of caution is likely to remain about travel. Even though there are signs that Covid-19 is moving towards endemic status, being in crowded or enclosed spaces will remain unappealing to many, particularly older individuals or the as-yet unvaccinated. Travel operators should therefore expect to maintain standards such as thorough cleanliness protocols and social distancing where possible. This new question introduced in Q4 2021 will track how these confidence levels evolve.
More than two thirds (68%) say that they are now either somewhat or very confident to travel on a plane, up from 59% last quarter. Americans are the most confident of the three regions, with 78% confident to do so. Only 14% are now not confident to fly, down from 18% in Q4 2021. Similarly, 84% are now confident about staying in hotels again, up from 77% in Q4.
Other crowded spaces such as shopping in stores (78%) and visiting popular tourist attractions (71%) have also seen a clear upturn in confidence over the past quarter. Confidence levels for other activities such as eating or drinking in crowded restaurants/bars (52%), eating buffet-style meals at hotels (57%) and going on group travel tours (42%) remain at lower levels but are also rising encouragingly.
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