Global Luxury AND ASSET MANAGEMENT (GLAM) MONITOR
sentiments and behavioUrs of the world’s affluent and high net worth populations
FOCUS ON TRAVEL
q3 2020 edition
Luxury Travel Experiences
Given that this question focuses on luxury holiday activities within the past three years, the data continues to show minimal quarterly variation, with the impact of Covid-19 so far being largely nullified. Americans remain the most likely travellers to treat themselves on their luxury holidays, particularly for travelling by business/first class, staying in a penthouse/suite and using room service.
Luxury remains important right from the start of our respondents’ holidays, including at the airport: 53% travelled by business or first-class and 52% used a VIP waiting lounge as per the Q3 data. 5* or more hotels have remained popular with affluent travellers, used by 67% of our quarterly sample, while 46% stayed in a suite/penthouse roomand 36% rented a beachfront villa. Room services/concierges also appeal to many and were used by 54% as per Q3.
Spas are used by 62% of our sample, with these facilities appealing to both genders and age cohorts (albeit with a skew towards women and under-40s). Wellness tourism continues to flourish as more luxury hotels acknowledge the attraction of relaxation facilities such as spas. These venues are likely to be particularly popular when the impacts of Coronavirus pass, with many travellers having a renewed focus on the need to maintain a healthy disposition.
Fine dining also plays an important role in luxury holidays (69%), although these will have to evolve as social distancing is likely to remain important in the immediate future. 28% have had a private transport experience such as a helicopter ride within the past three years. These are likely to remain popular in the coming quarters as the wealthy look for holidays which provide isolation and distance from the risks of infection.
Unfiltered Base: 4,120 global affluent/HNWIs | Source: LuxuryOpinions/AltiantHoliday Purchase Intentions
The majority of our affluent/HNWI respondents have travelled regularly over the past quarters of our study. Covid-19 will obviously continue to have a significant impact here, reducing the frequency and variation of luxury holidays in the year ahead. As expected, the Q1 and Q2 data showed this drop in travel plans despite some countries cautiously reopening their borders to tourists in the summer months.
Travelling within their own regions rather than going further afield remains the most popular among our sample. Indeed, this has been exacerbated by the impact of the virus, with fewer wealthy travellers willing to take longer-haul journeys. The risks of potential quarantines and self-isolation periods mean that many wealthy travellers are instead opting for domestic trips, or going to countries close to their residence. Asian respondents are showing signs of emerging quickest from lockdown periods, but may continue to eschew longer haul holidays due to the aforementioned risks.
Different holiday types see wide variance in popularity across the regions, but all types have seen a downturn in interest for 2020. Cruises in particular have been negatively impacted by Coronavirus, with a reduced interest in this type of holiday when compared to pre-Covid levels. City breaks in Europe and the US have also been hit particularly badly, a likely reflection of travellers’ ongoing concerns about being in overcrowded places where their exposure to Coronavirus is elevated. Sightseeing/tourist holidays, and family holidays within Europe continue to see a considerable drop in interest against pre-Covid levels.
Rural/countryside breaks and family breaks look likely to be among the most resilient holiday types in the coming years, reflecting the probable desire for many travellers to remain close to family and distanced from crowds and people who they do not know.
Unfiltered Base: 4,120 global affluent/HNWIs | Source: LuxuryOpinions/AltiantLuxury Leisure Travel Spending
Many affluent travellers are willing to invest significant amounts in luxurious holiday experiences. When all currencies are normalised to US Dollars, only 3% of the Q3 2020 sample said that they spent less than $1,000, while 12% spent $1,000-$3,500. As per Q3, Europeans are now the most likely to be conservative and moderate their holiday expenditure, with 18% spending under $3,500. A further 28% of the total sample spent between $3,500 and $7,000, while another 36% spent $7,000- $14,000.
At the top end, Americans represent a particularly lucrative pool of affluent travellers for brands to target and are the most likely to have invested heavily on a luxury holiday: against the total Q3 figure of 18% who spent over the equivalent of $14,000, this rose to 28% among Americans (and fell to just over 10% of Europeans and Asians). 3%did not have a qualifying holiday within the past
Filtered Base: 3,469 global affluent/HNWIs | Source: LuxuryOpinions/AltiantPublications contained in the Altiant Knowledge Center are free to use, we simply require proper attribution. In no event shall Altiant be liable for any indirect, special or consequential damages in connection with any use of the provided data. Altiant does prohibit the selling of any information contained within or derived from these reports and monitors.