8
INTRODUCTION
The appetite for travel has certainly grown post-pandemic. From weekend trips to workcations, being
away from home has become both a marker for self-care as well as social media approval. Yet, in this
world, luxury travel is a class apart.
While luxury travel attracts a relatively smaller target segment, the good news is that those who can
afford a $1,000-plus per day trip to an exotic location are increasing in numbers. According to the World
Wealth Report 2022, the total HNWI population expanded by 7.8%, and wealth swelled by 8% in 2021
1
.
What, however, sets a luxury vacation apart from others?
The luxury travel experience is marked by personalization. Clients want experiences tailored to their
needs. In addition to longer vacations, they want increased privacy and premium amenities
2
. From private
museum tours to luxury yachts, the most exclusive experiences are becoming popular. The global luxury
travel market size was estimated at $1.37 trillion in 2023
3
and is expected to grow at a compound annual
growth rate of 6.7% from 2024 to 2030.
A luxury vacation is no longer just about the hotel stay, either. Clients count ease of check-in, hassle-free
ground transfers and the quality of food and wine as integral parts of the experience.
Of course, these come at a price. And there are those willing to pay. Where a few years ago, not everyone
may have been willing to spend on a luxury vacation, today more travelers see them as a bucket list
experience to tick off.
Though online research will be the first step that clients take towards understanding where they want to
travel, it is the experienced advisors that help clients bring their inspiration to fruition. Research shows
that high-end travelers are turning to luxury travel agents for unique and hassle-free travel experiences.
And it’s not just the baby boomers and Millennials who are expected to spend on luxury vacations. Advisors
are looking at affinity clubs and Gen Z clients to buy into the immersive luxury vacation experience.
TMR’s Outlook on Luxury Vacations 2024 looks at the important role that advisors play in capturing and
expanding this market to a new client segment.
1 https://www.grandviewresearch.com/industry-analysis/luxury-travel-market
2 https://www.deloitte.com/global/en/Industries/consumer/perspectives/future-of-luxury-travel.html
3 https://www.grandviewresearch.com/industry-analysis/luxury-travel-market