Recent trends indicate that luxury travel is surpassing luxury goods in consumer spending, presenting new prospects for travel advisors. Data from the Bain & Company 2023 Luxury Study reveals that high-end travel is experiencing faster growth than the luxury goods sector, with affluent consumers increasingly prioritizing experiences over material possessions.
Shift in High-End Consumer Preferences
The Bain & Company report highlights that the global luxury travel market expanded by 12% in 2023, outpacing the 8% growth seen in luxury goods. This shift is attributed to changing consumer values, with more individuals seeking unique and memorable experiences. “We are seeing a clear move from owning to experiencing,” said Claudia D’Arpizio, a partner at Bain & Company.
According to the study, spending on luxury travel—including high-end hotels, cruises, and bespoke experiences—now represents a larger share of affluent consumers’ budgets compared to luxury products such as designer apparel, watches, and jewelry.
Travel Advisors Positioned for Growth
As luxury travel demand rises, travel advisors are well-placed to benefit. Industry experts note that travelers are increasingly turning to advisors for personalized itineraries and exclusive access. “Clients want curated experiences that they can’t get on their own,” said Misty Belles, managing director at Virtuoso, a global travel agency network.
Virtuoso reports that its members have seen a 30% increase in bookings for luxury travel this year. Advisors are leveraging their expertise and industry connections to secure unique accommodations, private tours, and other high-value experiences for clients.
Outlook for the Luxury Travel Sector
Analysts expect the luxury travel market to continue expanding as consumer preferences evolve. Bain & Company projects that the sector will maintain double-digit growth in the coming years, driven by demand for exclusive, personalized travel.
For travel advisors, this trend presents ongoing opportunities to provide value through tailored services and insider knowledge. As luxury travelers seek more distinctive experiences, the role of the advisor is becoming increasingly central to the industry’s future.
