What’s driving luxury travelers in 2024
According to McKinsey, demand for luxury tourism and hospitality will grow faster than for any other travel industry segment
Luxury travel will generate $239 billion in revenue in 2023, and McKinsey predicts it will grow to $391 billion by 2028. But who qualifies as a luxury traveler? According to McKinsey, it's anyone who typically spends more than $500 per night on hotel accommodations.
Key takeaways
- McKinsey's analysis of luxury travel trends reveals that today's luxury travelers are not necessarily as old or as wealthy as previously thought. The report challenges several common assumptions about this market segment;
- One misconception is that luxury travelers are extremely wealthy. In reality, 35% of this market is made up of individuals with a net worth between $100,000 and $1 million;
- These "aspirational" luxury travelers may splurge on special occasions, favor recognizable luxury brands, seek value for their money and prioritize loyalty program points and benefits;
- Another evolving belief is that luxury travelers are predominantly from Europe and the United States. However, rising affluence in Asia is fueling a surge in regional hotel development, reflecting a shift in the luxury travel landscape.
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