Skip to main content

Luxury travel is back!

Image
By

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.

Labels:

Comments

  1. ipmundiSeptember 15, 2022 at 11:29 AM

    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)

By
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, w...
4 comments
Read more

In what ways will AI affect restaurant operations?

By
A new wave of industrial revolution is here --- AI (artificial intelligence) will change everything we do. Undoubtedly, AI can improve restaurant operations.     Menu Engineering and Quality Control    AI can provide insights into a restaurant’s menu offerings and pricing strategies based on consumer data and market trends. Restaurant owners can adjust the recipes/menu and price accordingly.     AI can help restaurants monitor food temperature, cleanliness, and safety procedures, ensuring they comply with health and safety regulations. For example, AI can remind a sushi chef to replace a sushi plate that has been “sitting” on the conveyor belt for too long with a more popular item.     Consumer Experience   AI can help restaurants create location-based, personalized marketing campaigns to reach specific and targeted customers at the right time. Then, AI-empowered chatbots, reservation, and table management systems can help restaurants an...
18 comments
Read more

Is It OK for Hotel Staff to Wear Piercings and Tattoos?

By
Time has changed. I see more and more college students wearing piercings and tattoos nowadays, but is it OK for hotel staff to wear piercings and tattoos? The answer is “no, no, no.” According a report at USAToday.com, customers across the board do not want to see any hotel workers with pierced eyebrow, pierced tongue, tattooed arm, or nose ring. Some may argue that tattooed and pierced workers may seem more acceptable in edgy boutique hotels as compared to the big franchised hotels, but the survey results did not find any differences among a variety of lodging products. Many respondents believe people who wear visible tattoos and piercings are taking a high risk of their professional lives. If you stay in a hotel, do you mind being served by tattooed and/or pierced staff? What if you are the one who makes the hiring decision? References: USAToday.com: http://tinyurl.com/linchikwok08042010 Picture was downloaded from http://tinyurl.com/linchikwok08042010P
30 comments
Read more