How Luxury Travel Is Thriving in 2026

by Janeen Christoff
Last updated: 7:00 AM ET, Thu July 23, 2026

This article originally appeared in the July issue of AGENTatHOME magazine. Subscribe here to receive your free copy each month.

While the Iran war has rattled the broader travel industry — spiking airfares, canceling flights and shaking consumer confidence — luxury travel continues to defy the turbulence.

According to data from Virtuoso, summer bookings are up 22% year over year with sales up 34%, and industry leaders say high-end travelers simply behave differently in a crisis. That resilience, combined with a fundamental shift in what luxury travelers want, is creating a significant opportunity for home-based advisors.

International airfares have jumped, with costs increasing more than 35% since the war began. Southeast Asia is seeing steep visitor declines and overall U.S.-to-Europe summer bookings are down. Yet, the luxury segment is holding strong.

Luxury Travelers Don’t Flinch; They Redirect

Higher airfares are less of a deterrent for high-end clients, but geopolitical uncertainty is shifting where they go.

The 2026 Virtuoso Luxe Report, published at the end of 2025 and surveying nearly 2,500 travel advisors across more than 50 countries, revealed that luxury travelers were already favoring less-crowded destinations — such as Iceland, Norway, Greenland and shoulder-season spots in Europe — over places that were over-touristed or conflict-adjacent. Now, these destinations are even more attractive.

Hawaii, particularly Maui and the Big Island, is proving to be a domestic hotspot among luxury travelers.

Meanwhile, domestically, Hawaii is taking center stage for luxury travelers. Booking data from Global Travel Collection (GTC), part of Internova Travel Group, shows the Big Island and Maui as some of the agency’s highest-growth destinations for summer 2026, alongside Big Sky, Montana; the Blackberry Farm and Blackberry Mountain enclave in Tennessee; and coastal New England, anchored by Rhode Island.

Meanwhile, some urban luxury destinations have been taking a hit. According to GTC data, New York City bookings have fallen nearly 50% year over year as luxury clients substitute ranch retreats and beach escapes for summer city breaks.

"At moments when the world feels uncertain, sophisticated travelers don’t stop traveling; they pivot," said Angie Licea, president of GTC. "What we’re seeing is a deliberate shift toward extraordinary domestic experiences — from private island resorts to mountain ranch retreats — where travelers can stay closer to home without compromising on luxury or discovery."

The Meaning of ‘Luxury’ Has Changed

International conflict has accelerated a shift that was already underway. According to the 2026 Virtuoso Luxe Report, luxury travelers are no longer satisfied with opulence for its own sake; instead, they are pursuing experiences that are meaningful, restorative and deeply personal.

Research from Expedia TAAP reinforces this dynamic. Personalization is one of the top drivers of loyalty among luxury clients.

The definition of "luxury" has changed, and travelers now want more personalization.

According to data from Hilton’s 2026 Trends Report, "whycations" driven by milestones, "hushpitality" retreats in intimate resorts and bespoke itineraries built around personal passions are what today’s high-end traveler is seeking.

An advisor who understands those distinctions — and can deliver on them — is far more valuable than any booking platform.

Advisors Play a Key Role

The complexity of this current travel environment has quietly become one of the strongest arguments advisors have ever had for their value. Flight consolidations, rerouting, ceasefire uncertainty and rapidly changing availability mean that even a client who once booked independently is now picking up the phone. Professional guidance isn’t optional anymore; it’s essential.

Companies are taking the cue and making it easier for travel advisors to plan high-end vacations. Advisors looking for expert backup on complex luxury bookings have a powerful — and still underutilized — resource in ALG Vacations’ Premier Destinations Team.

The team brings more than 5,500 hours of destination-focused training covering Hawaii, Europe, Asia, Africa, Australia, the South Pacific and the broader Indo-Pacific region. That depth of knowledge is available to advisors at every experience level — from newer agents needing help with initial client follow-up to seasoned professionals building out highly detailed, multi-destination itineraries.

"We’ve made it easier than ever to reach out to the team," said Jacki Marks, global head of trade brands for ALG Vacations. "A new multi-destination booking assistance link is now available directly within our booking engine; you’ll see it once you start this type of booking."

This team is just one example of how advisors often have a direct line to expertise that can help close the sale.

The turbulence is real. But so is the opportunity — and it belongs to advisors who are paying attention.

Today’s travelers are seeking meaningful experiences that bring them closer together.

How Advisors Can Help Luxury Clients Now

Proactive Outreach

Don’t wait for clients to call. Advisors should be reaching out now to clients who have booked — or are considering — destinations affected by airfare volatility or itinerary disruptions, with alternative options already in hand.

Redirect Toward Resilient Destinations

Steer clients toward the destinations that are already trending — such as Iceland, Norway, Japan and Croatia — where demand is strong, crowd concerns are manageable and geopolitical exposure is low. Canada is also gaining momentum across luxury categories and offers an easy domestic-adjacent pivot for hesitant clients.

Lead With Travel Protection

More clients than ever are purchasing insurance as a safeguard against climate-related disruptions, and that number is almost certainly higher now. Every luxury booking in this environment should include a conversation about comprehensive travel protection, and advisors should be versed in what policies cover conflict-related cancellations.

Lean Into the Ultra-Luxe Property

Private villas, resort buyouts and yacht charters can sidestep the airfare and crowding issues entirely and are exactly the kind of complex, high-touch bookings that justify — and reward — an advisor’s expertise.

Be the Calm in the Storm

In a moment when clients are, as one hospitality professor put it, "very hesitant to make long-term bookings," an advisor who communicates confidently, monitors changes and stays ahead of disruptions becomes indispensable. Responsiveness and proactive communication are the most underrated luxury amenities an advisor can offer.

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