Wealthy Travelers Aren’t Cutting Back—They’re Just Booking Differently

Luxury travel spending remains high, driven by rising prices and premium experiences, even as the number of trips taken may be slightly down. That’s according to luxury travel advisors attending the Brownell Academy in Chicago this week.

The advisors, part of a host agency that boasts the highest booking dollars per member in the industry, all shared a similar message: travel demand remains healthy among high-net-worth clients. While trip volume may not be growing at the same pace as 2023 or 2024, overall spending on ultra-luxury travel remains strong, driven by rising hotel and airfare costs.

Jessica White, owner of Jessica White Travel in Richmond, Virginia, and a member of Brownell’s 1887 Club ($2.5 million in sales and above), told LTR that she has seen her first-quarter sales double year over year from 2024. She attributes the growth to both the continued appetite for high-end travel and rising costs that are pushing total spending higher.

“Prices have gone up dramatically—I’ve regularly seen a 20% increase in hotel costs,” White said. “We may not be booking as many trips, but we’re still capturing that spend.”

Despite their wealth, ultra-luxury travelers are becoming more cost-conscious, White noted. There is still a measurable degree of sticker shock when they see today’s prices, and many are re-evaluating destinations based on overall value.

“They still have a budget,” she said. “Our role now is to fit high-end experiences within that budget—finding destinations that check all their boxes but may not be the ‘hottest’ names in luxury travel.”

For some, that means choosing Jamaica or the Dominican Republic over St. Barts, White said. “There are less buzzworthy places that still offer top-tier food, service, and views at half the price.”

A.J. Marasco of Travel by A.J. in Celebration, Florida, noted similar trends, stating that while requests were down in the first quarter, the average spend per trip was up—an outcome she welcomes.

“Volume may be lower, but spending is up, which is what I want,” Marasco said. “The first quarter was slower in requests, but my per-dollar spend was higher.”

Alessia Bell, an advisor with Alessia Bell Travel in Westport, Connecticut, said she has noticed some hesitancy among clients who are closely watching economic uncertainty.

“I am seeing some hesitancy because of uncertainty—uncertainty is not good for decision-making,” Bell said. “Clients who have already planned trips are moving forward, but some are holding off on bigger trips. If they’re watching their portfolio, now may not feel like the easiest time to commit.”

Stacy Tedesco of Open Doorways Travel in Bernardsville, New Jersey, has observed a similar pattern, noting that while demand remains strong, the timing of bookings has shifted.

“People were booking later in the year,” Tedesco said. “I think the numbers are still good, and from what everyone is telling us in the industry, they may not be exactly where they were last year, but they’re still strong.”

David Harris, CEO of Brownell Travel, said a high level of wealth, coupled with a shift toward valuing transformative experiences, is a significant driver in the current luxury travel boom, something that is sustainable even with inevitable economic uncertainty at some point now or in the future.

“A large part of that is the amount of wealth that is out there, coupled with the fact that people are really valuing experiences now,” Harris said. “The prioritization of what we want out of life is still about transformation.”

Harris also noted that younger generations, including Gen Z and millennials, are also prioritizing experience spending, and at the same time are increasingly turning to travel advisors.

“Millennials and Gen Z are three times more likely to use a travel advisor than the previous generation,” he said. “A travel advisor is a trusted advisor, just like others in your life. It’s a big spend, and you want to entrust that to someone you can trust—someone who’s been there and done that.”

Industry analysts have noted similar trends, with some forecasting that luxury travelers will continue to recalibrate their choices amid rising costs and economic uncertainty. However, demand for exclusive, high-touch experiences remains resilient.

What might harm the industry more is the level of uncertainty in the economic, or political future, rising.

Michael Gaughen, who operates M&L Travel in Atlanta and is a member of this year’s Griffin class ($4.5 million in sales and above), said the only factor that typically causes a pullback among his ultra-luxury clients is heightened uncertainty—something the industry often anticipates during major events such as U.S. election years.

“Nothing really stops luxury travelers from traveling,” Gaughen said. “We were a little slower in November and December, but right now I feel as busy as I’ve ever been.”