Skip to main content

Luxury travel is back!

About two years ago, I expected home-sharing and luxury hotels to recover sooner than other lodging products based on a consumer survey about travelers’ shifting intentions to use various lodging products after the pandemic (Kwok, 2020). We have already seen how well home-sharing facilities and extended hotels have been doing since summer 2020. Now that we are gradually recovering from the pandemic, has luxury travel come back yet?   

People want to travel again in 2022

 

Unlike 2020 or 2021, where almost half of the consumers had canceled or postponed their vacations, only 5.5% may push their plans to a later date, and less than 4% want to cancel this year (Jacob, 2022). People are ready to hit the road again. Moreover, many people want longer trips and will book them early. Some luxury vacations are already fully booked this year.  

 

Luxury vacations are trending now

 

Not everyone lost jobs or struggled during the pandemic. Those who accumulated more wealth in the last two years are now longing to spend more money on experiences with their loved ones, driving up the demands for private villas, private jets, private tours, and luxury vacations. 

 

For example, the Mediterranean is traditionally a popular destination for private yachts. Some companies have already seen 80% of their charters to Spain being booked in the summer. Within the States, selected luxury ranches in Montana and Wyoming are also fully booked until February 2023 (Jacob, 2022).  

 

Rate increase in luxury hotels can beat the inflation 

 

According to a recent CBRE forecast, the US lodging market is expected to see a rate recovery in 2022 and a full RevPAR (revenue per available room) recovery in 2023 compared to the pre-pandemic 2019 levels. Most likely, only luxury hotels have the leverage to exercise rate increases that exceed the pace of inflation.  

 

Last year, my students conducted a market analysis of Orange County, California. We found that the rates in the market’s luxury chain hotels were already three times higher than the upper-upscale hotels and nine times higher than the economy chain hotels. 

 

People are willing to pay a lot more for a luxury travel experience. Luxury travel is back already, although it might have arrived quietly. 


Do you want a luxury travel experience too? What do people want in luxury travel?  


Note: This viewpoint was first published in the Hospitality News Magazine. The picture was downloaded from TravelandLeisure.com.

Comments

  1. You have a genuine capacity to compose a substance that is useful for us. You have shared an amazing post about....Much obliged to you for your endeavors in sharing such information with us. malta trademark office

    ReplyDelete

Post a Comment

Popular posts from this blog

Luxury vs. Millennials and Their Technology: The Ritz-Carlton (By Julia Shorr)

Embodying the finest luxury experience, The Ritz-Carlton Hotel Company, LLC has been established since 1983. In 1998, Marriott International purchased the brand offering it more opportunity for growth while being independently owned and operated. They are known for their enhanced service level as the motto states, “Ladies and Gentlemen serving Ladies and Gentlemen”. The luxury brand now carries 97 hotels and resorts internationally and is attempting to keep the aspects of luxury while keeping up with the trends of the technologically improving generations. The Varying Demographics of the Target Market The Ritz-Carlton’s typical target market includes: business executives, corporate, leisure travelers, typically middle-aged persons and elders, and families from the upper and upper-middle class section of society .   This infers a large range of types of travelers in which all are similar in that they are not opposed to spending extra for the luxurious ambiance. However, with

The challenges of SB 93 (California Senate Bill No. 93) will impose on the employers and their human resource management team (by Brittany Schaffer)

The COVID-19 pandemic started in early 2020, and it has caused massive changes within a short period of time. One of the most rememberable effects of the COVID-19 pandemic was that businesses had to come to a complete halt, forcing them to lay off employees. California's unemployment rates went up.  Now that the stay-at-home orders have lifted, people start to come out. Businesses are now reopening, looking to rehire their laid-off employees. Before the pandemic, employers had the option of recalling only a certain number of laid-off employees they would want to rehire based on employees' job performance. That option had been changed after Governor Gavin Newsome signed into law - Senate Bill 93, which went into effect on April 16th, 2021. The California Senate Bill No. 93 (SB 93) According to SB 93, companies in specific industries, mainly the hospitality industry, have the obligation to provide job opportunities in written form to qualified employees being laid off due to COVI

Want to win in future competitions? Invest in data-driven decisions now

Speaking of the permanent changes in the hospitality industry, many people will probably agree that demands for “bleisure”/“work-from-anywhere” travel and contactless self-service will continue to grow in the near future. Not everyone, however, realizes that data-driven decisions will become a key driver for growth in the industry, which has already affected how we do business now.   Automatic service enables businesses to capture more operational and consumer data for business decisions   One advantage of using automatic service comes from its ability to spontaneously capture and store real-time operational and consumer data for additional analysis. In the old-time when businesses still relied on workers to serve customers, operational data were collected usually through careful book-keeping, documentations, and observations; consumer data through market research were often limited to their perceptions, behavioral intentions, or past experience.     Now that automatic service is provi