News

Amadeus Report on Shaping the Future of Luxury Travel

Amadeus Report on Shaping the Future of Luxury Travel

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 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, according to the report.

Between 2011 and 2015, luxury travel, in terms of outbound flights on business or first class, saw a 4.5% compound annual growth rate (CAGR), versus 4.2% for overall travel. This trend will continue to accelerate over the next 10 years, with luxury travel trips projected to grow at a CAGR of 6.2% between 2015 and 2025, almost a third faster than overall travel at 4.8%.

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.

Key Findings

Key findings from the report include:

  • We have entered a new age of luxury travel, where luxury is curated, real-time and experience-led
  • North America and Western Europe account for 64% of global outbound luxury trips, despite only making up 18% of the world’s population
  • From 2011-2025, Asia Pacific’s luxury travel market will see faster overall growth than Europe’s, but this growth will decelerate from 2015-2025
  • India’s luxury market CAGR of 13% is higher than any of the other BRIC nations, and is the highest of the 25 countries explored in the report
  • A human desire for more rewarding experiences provides an essential catalyst to evolve and improve travel industry quality and service standards
  • A hierarchy of luxury travel needs is identified, ranging from 5-star quality and service standards to exclusive VIP privacy and security

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.

“Luxury means different things to different people and this is especially true today,” said Rob Sinclair-Barnes, Strategic Marketing Director, Amadeus IT Group. “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 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 key to achieving a new level of luxury that has never existed before.”

You can download a free copy of the Shaping the Future of Luxury Travel report here.

Click to add a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

NEIL STEEDMAN has been a trade journalist, copywriter, editor and proofreader for 52 years, and News & Features Editor for ‘Irish Travel Trade News’ for the past 42 years.

More in News

CAR Issues Regulation Notice Regarding Sindaco Ltd

Neil SteedmanJuly 20, 2018

Three Airports Welcome Norwegian 2019 Summer Schedule

Neil SteedmanJuly 20, 2018

Aegean Airlines is Skytrax Best Regional Airline in Europe 2018

Michael FloodJuly 20, 2018

Bangkok from €549, Sydney from €1,120 in Emirates July Sale

Neil SteedmanJuly 18, 2018

Lufthansa to Go Five Daily on Dublin-Frankfurt

Neil SteedmanJuly 18, 2018

Singapore Airlines Voted World’s Best Airline at Skytrax Awards

Neil SteedmanJuly 18, 2018

Finnair Extends ATTS Contract to Represent Airline in Northern Ireland

Michael FloodJuly 17, 2018

George Best to Overlook Donegall Square from New Belfast Hotel Rooftop

Neil SteedmanJuly 17, 2018

New Air France Business Lounge at Paris-CDG

Neil SteedmanJuly 17, 2018

Copyright © 2016 Belgrave Group Limited, C4 Nutgrove Office Park, Nutgrove Avenue, Rathfarnham, Dublin 14, Ireland