Post-pandemic vacations: the value of luxury: Business Traveler USA
The pandemic has produced a lot of normal news: masking, distancing, soloing, zooming. And it has also carried a growing new standard in travel, especially in the luxury market. This segment of the travel industry is not new, but it is growing at breakneck speed according to reports from Allied market research. The global luxury travel market was pegged at $ 945.6 billion in 2019, but is now expected to reach $ 1,198.3 billion by 2027, registering a CAGR of 11.1% in the years to come 2027 .
The report cites the growing inclination towards unique and exotic vacation experiences, the increase in disposable income and related expenses in the middle and upper class economic strata, and an increase in people’s need and interest in spending time. more time with their families. At the same time, the emergence of new destinations and increasing demand for improved service standards are expected to fuel the rise of energy in this segment of the industry.
But as the world continues to crumble after an unprecedented year that saw airlines, hotels, food services and business travel crumble, the new normal is more like a newborn baby who falters on its knees than a robust industry regaining its balance.
The Rise of the Private Flyer
Strange effect of the pandemic, the global private aviation market, estimated at around $ 10 billion in 2020, is now expected to more than triple to $ 32 billion by 2028, with North America accounting for around 60% of this market by the end. of the forecast period, according to researchandmarkets.com.
One of these private jet companies, Wheels Up, reported a whopping 68% increase in revenue in the first quarter and a 56% increase in active members, noted a report from CNBC, as growing wealth creation and pandemic fears continue to drive demand for private aviation.
What does all of this change mean for the crowds of people taking the air and heading to luxury hotels near and far during the summer travel season?
Lots of inconsistencies and chaos, notes Doug Gollan, editor-in-chief of PrivateJetCardComparisons.com. In one functionality writing for Forbes, the former editor of Elite Traveler magazine wrote:
ââ¦ Twenty-five hundred dollars for a standard room, no room service and daily housekeeping on request, but not guaranteed. The good news for luxury travelers is that the world is opening up. Five-star hotels and resorts are ready to receive affluent guests. However, the best travel counselors suggest that those who wish to return there need a big wallet, moderate expectations, and professional help to guide them through what might be the norm for the foreseeable future. Forget dreams of impeccable service and deciding where to dine on a whim. Welcome to the new reality of luxury travelâ¦ â
Private villa: the comforts of home and outside
However, while some infrastructural segments of the powerful travel industry are at risk of being rocked by the winds and waves of the wild return to travel – namely, commercial airlines, airports, hotels, resorts and airlines cruising – other segments of the industry see only calm seas. forward. At least that’s what Sean Emmerton sees. The CEO of Elegant mexico and Distinguished Residences barely felt a shock when the world closed to travel and the holidays became a memory of the good old days of 2018.
Emmerton’s business is to reserve high-end products villa vacations in Mexico, and when the borders within Europe firmly reopen to American travelers, it also brings a selection of very upscale villas from the ski slopes of France and Switzerland, as well as seaside mansions on the Mediterranean and exquisite country farms in Tuscany. However, its portfolio of villas in Los Cabos and Punta Mita, Mexico have been in high demand throughout the pandemic.
Services haven’t gone down, Emmerton says.
âIn fact, a vacation to Los Cabos during this time, for example, has been extremely beneficial for our clients. Prices remain as they were before the pandemic, so there are no questionable rate changes. And add to that the calm and lack of visitors during this time. This means that villa guests have practically been able to have Los Cabos to themselves – no loud crowds, no waiting for a one-hour tee time on some of the best courses in the world, easy access to local cruises, boat trips. fishing, dining experiences, spa experiences, you name it! Our guests were able to have it all, including the beaches, to themselves.
Being in the right place at the right time allows Emmerton to be the right answer to the fastest growing travel intention as Americans return to travel: meeting with friends and family. A recent Wyndham Destinations poll found that 72% of attendees said they would prioritize travel to see family and friends, with three-quarters saying they will likely do so before the end of the year. The survey also revealed that the desire for home-style amenities is higher than ever. While too much time spent outdoors can be a tough pill for more families to swallow, too much time together is a concern as well. Thus, the majority of people interviewed in this survey (82%) said that having separate living spaces in their neighborhoods allows them to spend more time in peace when needed, while 75% agree that separate living spaces make family vacations more enjoyable.
What travelers want
And given their sanity after a period that saw more American deaths than World War II, it’s no surprise to see a recent report from American Express Global Travel noting that 87% of their respondents thought they had a planned trip in the future. would give them something to look forward to and planning their future trips would make them excited (63%), happy (53%) and hopeful (53%). In addition, 78% of those surveyed said they want to travel in 2021 to relieve the stress of 2020.
“A lot of people have seen their net worth increase, given that the stock market is at about an all time high,” said Patrick Scholes, managing director of accommodation and experiential recreation research at Truist Securities in a comment. recent report from Skift. âMany have also saved a lot by staying at home. So people are willing to let go and spend more than they normally would on travel. “
It can mean the perfect beachfront villa with family and friends and lots of built-in privacy, or paying a little more for less service at a five-star mountain-top resort. The trip can be bumpy with long lines at the airport and vaccination / test documents in circulation, but the good times start to roll in and new memories are more than ready to make up for all the time lost.
âThe pandemic has made people wonder if the golden age of travel is over. The new era of travel is coming, âsaid Chris Nassetta, President and CEO of Hilton Corporation at a recent travel conference. âThe recovery is going to be quick, people haven’t lost their desire for experiences. There is pent-up demand. Globalization will regain strength. The hospitality industry will create immense growth and opportunities around the world.