This article originally
appeared in the October issue of AGENTatHOME magazine. Subscribe here to receive your free copy each month.
As the luxury travel market continues to expand, advisors say their affluent clients are increasingly placing a high premium on vacations that are created exclusively for them – and that put the spotlight on a generous number of one-of-a-kind experiences.
“Today’s luxury client is seeking unique and tailored experiences, not just five-star accommodations,” said Tiffiney Love, an independent contractor with Sojourney Travel. “They are interested in creating memorable moments, whatever the price tag.”
Rising Rates
“As more advisors enter the luxury space, the number of luxury travelers has increased, making those luxury experiences and properties of five years ago more commonplace,” said Becky Lukovic, owner of Atlanta-based Bella Travel Planning, an affiliate of Travel Experts. “And the bar keeps moving up in both price and pizzazz. I see this as a trend which will continue in the coming years.”
Ralph Iantosca, owner of Iantosca Travel, who is also a Travel Experts affiliate, agreed that pricing will continue to rise higher still. “There is an abundance of choice, a lot of new products and new itineraries, and the competition is fierce.”
Portrait of Today’s Luxury Traveler
Lukovic noted that her customer base comprises “those who take multiple luxury trips each year and those who save up to get a special experience to relive for a lifetime.”
In the view of Angela Hughes, CTC, CEO and founder of Trips & Ships Luxury Travel, the “high net- worth individuals with substantial disposable income will continue to dominate the top tier of the luxury travel market.”
These clients typically seek the highest levels of exclusivity, privacy and customization, favoring ultra-luxury experiences such as private villas, yachts and bespoke itineraries.”
In order to be confident in the luxury space, change your paradigm of what you should spend on travel as an advisor.”
Age-Related Travel Preferences
For his part, Iantosca has noticed a significant difference in travel preferences between his older and younger luxury clients. “Those clients 50-plus years of age want to have cultural immersion, participatory, authentic and educational components on itineraries with seasoned guides,” he said. “Traditional high-end service is preferred with hotels and dining experiences – with all the details handled.
“Those under 50 are so different and prefer shorter, immersive vacations and enjoy experiences they’ve see on Instagram. They prefer to hop around a bit more.”
Spend it to Earn It
“In order to be confident in the luxury space, change your paradigm of what you should spend on travel as an advisor,” Lukovic said. “The best luxury advisors I know have a very healthy travel budget. They see it as an investment in themselves.
“High-net-worth individuals with substantial disposable income will continue to dominate the top tier of the luxury travel market.”
“If you only stay at budget properties when you travel or only utilize hosted stays, you may be missing out on the opportunity to truly understand the value of that amazing five-star hotel.”
Even when using advisor rates, Lukovic added, “hotels can still be very expensive, but in all likelihood the cost will likely reap lucrative rewards.”
Iantosca suggested taking advantage of luxury supplier training and contacting business development managers for advice. “With all the new opportunities that the luxury suppliers are offering, I would encourage advisors to sell higher-level products proactively,” he said. “Compare the difference in cost, as the mainstream mass-market companies have increased their rates.”
Focus on Personalized Service
“Personalized service is critical in this market, so focus on hyper personalization by understanding your clients’ unique preferences, interests and desires and curating bespoke experiences tailored to them,” Hughes said.
She also suggested that advisors develop a “robust online presence and leverage it to showcase their expertise and create visually engaging content that appeals to affluent, experience-driven travelers.”
“Create systems and tools to offer a white-glove, concierge-style service, ensuring that every interaction is seamless, from initial consultation to post-trip follow-ups, which builds trust and long-term loyalty,” Hughes added.
“Service is everything,” Love said. “You can’t provide service if you’re not listening well to your client’s needs. You’ve got to understand what your client needs first, while creating partnerships with solid brands that can deliver on promises. Listen, service and partner!”
“There is an abundance of choice, a lot of new products and new itineraries, and the competition is fierce,” she added.
The Evolving Luxury Traveler
Going forward, expect to see a growing number of “aspiring luxury travelers” entering the market, said Hughes.
“This segment, which includes affluent professionals and younger travelers with growing disposable incomes, is willing to pay for premium experiences that offer clear value,” she said. “Although they may not have the same spending power as ultra-wealthy clients, they seek many of the same elements – such as personalized service, exclusive access and unique experiences – but are more discerning when it comes to cost.”
These travelers, she said, “prioritize value over extravagance, often opting for high-quality accommodations, curated adventures and meaningful travel experiences that align with their personal values, including wellness and sustainability.”
Added Lukovic: “Sustainability and overtourism are the travel buzzwords of the moment. I foresee travelers continuing to want to avoid the crowds, but also still wanting to visit those legacy destinations. It’s a balancing act for sure.”
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