Luxury travels, now a part of top global economies
Curated travel adventures are the hot favourites of the '$1m plus club'
The study, conducted by Barton Consulting and Wealth-X for the International Luxury Travel Market has revealed that a complex mixture of food & drink, cultural activities, wellness, sporting events, performance arts and outdoor pursuits that make up the ‘experience economy’ of travel – is worth an estimated $1.54 trillion a year. This does not include accommodation and sir travel expenses; if this were a country’s ecosystem, it would rank in the world’s top fifteen economies.
Reporting with astronomical figures, the Barton and Wealth-X states that “The reason why this ecosystem is so important to the luxury travel industry is because more and more of these wealthy individuals are seeking curated travel adventures tailored by advisors who know them well, know what they care about and are passionate for.”
The highest category, with a net income of $30 million, is estimated at around 265,000 people worldwide. In any case, travel is one of the areas of expenditure favored by people with an income of over a million dollars, the "$1m plus club.” According to Barton and Wealth-X, this clientele spends an average of $30,000 per year on travel.
These wealthy individuals are increasingly conscious when it comes to travel. Influenced by knowledge of their travel’s impact on the environment and local communities, they are choosing places to stay and travel pursuits within the Ecosystem which have strong sustainability pledges and which minimise the impact of their arrival and presence.
A category of travelers that shouldn't be overlooked by the tourism professional, as stated by the report, is the HENRY, an acronym for "High Earners Not Rich Yet.” These consumers are not among the richest categories, but they can happily afford exceptional vacations from time to time. It's a market with interesting potential, as it now accounts for 63% of spending in the luxury travel ecosystem.