The future of luxury travel according to the ILTM
International Luxury Travel Market (ILTM) released the first findings of their global research project on the luxury travel industry at ILTM Asia. The objectives of the ongoing research study are to identify key supply and demand trends, to explore the future of the business relationship between buyers and suppliers and to establish benchmarks for the global luxury travel industry.
The good news is that the luxury travel industry will continue to recover from the financial crisis, demand is expected to grow, and Cape Town is top of mind as a luxury destination in Africa and the Middle East, along with Dubai.
A clear distinction between ultra-luxury and affordable luxury has been observed, together with the development of personalised services such as concierge services, a move away from ostentation, the increasing importance of web-based media including social media, and progressively more attention to sustainable principles. Above all, as with the luxury sector in general, the demand for luxury travel is expected to grow especially in relation to emerging economies e.g. in the BRIC countries (Brazil, Russia, India and China).
Challenges that were identified include the gap between buyers opening the door for fresh, authentic travel experiences for their clients and suppliers tending to play it safe with a focus on more mature, resilient markets, as well as the industry’s battle to attract new talent from a resource perspective.
Learn more about industry trends such as a “bipolar” post-crisis market, with a strong overlap between luxury elements and the mass markets to boost sales, which is now moving toward a clear distinction between ultra-luxury and affordable luxury; the rise of China, the growth of multi-generational travel and how sustainability has edged ostentation out of the decision-making process.
The report includes key information on the segments for luxury travel (the three “As” of luxury), changes in demand, the four traveller profiles and destination trends.