A new Amadeus report looks at luxury travel trends until 2025 to help the travel industry better target and service its fastest-growing segment. The report was commissioned by Amadeus, a global travel technology provider, and developed with data from Tourism Economics and with dozens of expert interviews with global luxury travel experts across specialist travel concierge agencies, airlines, hoteliers and intermediary suppliers through Connections, a global networking event organiser for luxury travel providers.
Global consumers are increasingly spending their disposable income on experiences rather than material goods. Consumers’ desire for life experiences is spurring a growth in luxury travel that is outpacing the rest of the travel industry, finds a new Amadeus report featuring data from Tourism Economics.
Between 2011 and 2015, luxury travel, in terms of outbound flights on business or first class, saw a 4.5 per cent compound annual growth rate (CAGR), versus 4.2 per cent for overall travel. This trend will continue to accelerate over the next ten years, with luxury travel trips projected to grow at a CAGR of 6.2 per cent between 2015 and 2025, almost a third faster than overall travel at 4.8 per cent.
This trend is good news for the luxury travel sector. The report, ‘Shaping the Future of Luxury Travel’, reveals the fresh challenges and opportunities that the luxury travel market will face over the next decade.
In 2015, Amadeus released a report called Future Traveller Tribes 2030, which identified six traveller tribes based on consumer behaviour, recognising that purchasing patterns change depending on the circumstances of each trip.
Using similar methodology, Shaping the Future of Luxury Travel, identifies six luxury traveller tribes to help travel providers better target their luxury customer market: Always Luxury; Special Occasion; Bluxury; Cash-rich, time-poor; Strictly Opulent; and Independent Affluent.
Rob Sinclair-Barnes, Strategic Marketing Director, Amadeus IT Group said, “Luxury means different things to different people and this is especially true today. As emergent middle classes seek the material aspect of luxury travel, more mature markets are craving a new, evolved kind of luxury. This is why offering luxury customers a relevant personal and exclusive experience will become even more crucial than it is today – it will be a differentiating factor between old and new luxury.”
“Understanding your business’s role in delivering an end-to-end luxury experience for a traveller is the key to improving collaboration, and reinforcing an industry-wide push for consistent luxury service. Exploring the latest technologies and innovations for making the industry work better as a whole is the key to achieving a new level of luxury that have never existed before,” added Barnes.
