Will the luxury travel boom remain the gift that keeps on giving to the industry?

22.07.2024 - 18:48 / breakingtravelnews.com

Luxury travel curators are pushing the boundaries of indulgence, crafting experiences that redefine exclusivity.  Gone are the generic “luxury” packages; today’s high-end traveller craves “ultra-premium” adventures, seeking the rare and authentic.

But don’t think this shift is just about opulence, it’s also about personalisation.  To a great extent this explains the success of membership programs that offer exclusive access to curated experiences built around the personal tastes of travellers, whilst also fostering a sense of community among discerning adventurers.

The luxury travel industry itself is booming, with a market size exceeding US$1.2 trillion in 2021 and a projected growth rate exceeding 7% annually until 2030.  For example, Delta Air Lines has recorded record profits from premium, hotels are innovating in new premium products and all-luxury airlines such as Beond and JBL are perhaps threatening big carriers.

We asked experts from across the travel spectrum whether this is likely to be a long-term trend, as well as how the industry can tap into it.

The luxury boom could prove challenging for airlines, but lucrative for those with the flexibility to broaden their offerings – particulary through personalisation.  As Javier Jiménez, Cofounder & COO at Airnguru, a leading provider of fare management, pricing intelligence and price automation solutions for airlines, says: “Established carriers must adapt by offering a truly differentiated luxury experience – beyond plush seats and champagne to include personalised services, curated in-flight experiences, and seamless connections. Leveraging technology and data allows airlines to anticipate the needs of discerning travelers, ensuring each journey feels exclusive and unforgettable. This also enables price optimisation of the personalised offers, crucial for a profitable business. Full-service airlines, with extensive infrastructure and diverse aircraft configurations, are well-positioned to capitalise on this opportunity and boost load factors in premium and premium-economy cabins. However, designing and executing suitable strategies, while maintaining product and service consistency across fleets and codeshare partners, remains a significant challenge.”

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The luxury boom also presents a strong opportunity for the hotel space, particularly independent hotels that offer the unique ‘boutique’ experience.  But how do such hotels, often without the marketing & sales resources of their bigger competitors, reach such an audience? As Pablo Sánchez from Mirai, whose technology solutions enable hotels to maximise direct sales opportunities and minimise distribution costs, explains: “Large OTAs like Booking or Expedia are difficult places to