It’s not what you think. The SKI trend has nothing to do
with snow and slopes.
SKI stands for “Spending Kids Inheritance,” a new trend
that’s beginning to reshape how affluent travelers are spending their money on
luxury travel. With the largest generational wealth transfer in history
underway, Forbes
says that $84 trillion is expected to transfer from baby boomers to younger
generations in the U.S. by 2045.
The trend represents a new wave of travelers prioritizing
experiences over traditional luxury purchases. Research also suggests that
travel is becoming the top discretionary spending category for affluent
travelers. According to Charles
Schwab, nearly 40 percent of individuals with $1M plus investible assets
say travel will be their luxury spend, even as spending on traditional luxury
goods softens.
As a result, a growing number of travelers are embracing the
“SKI” travel
trend, choosing to spend on bucket-list trips and one-in-a-lifetime
experiences rather than saving wealth for the next generation. In many cases,
this includes the baby boomer generation of travelers picking up the tab for
children and grandchildren on vacation. In lieu of physical gifts for holidays,
birthdays and other memorable events, baby boomers are gifting travel
experiences – shared adventures that capture
moments that will long be remembered rather than physical gifts that are eventually forgotten.

A wild giraffe crosses an African road ahead of a safari vehicle of tourists (Photo Credit: Courtesy AdobeStock)
For many retirees in this age group, the new philosophy is
to give your kids and grandkids values and memories, not just money. The approach of many
generational families I interact with in my boomer world agree that it doesn’t
have to be an “all or nothing” approach, rather creating a legacy floor
balancing inheritance with allocating time and money on travel and experiences.
According to Kyle Oram, founder of KVI Travel and recently
launched KVI Luxe, the company’s luxury travel division, “We’re seeing a
generational shift from a mindset of scarcity to one of abundance, where
affluent travelers are prioritizing experiences over possessions.”
He added, “At KVI Luxe, we focus on creating highly
personalized experiences that reflect how important travel is in our clients’
lives. We often say we’re architects of joyful moments’ and that’s exactly how
we approach every itinerary.”
Regarding booking behavior and demand, Kyle says his company
is seeing strong demand for customer itineraries that include elements of
surprise and discovery. Clients are looking for experiences that they couldn’t
plan on their own. On a recent trip to Andalusia, what was planned as a polo demonstration turned into a fully immersive experience. Within an hour, we were on horseback and playing. That kind of unexpected moment is exactly what today’s luxury traveler is seeking.”
Part of the shift to the SKI trend is related to many retirees watching others
die before enjoying their life savings, so, they want to prioritize new
experiences now. As a result, these baby boomers know full well the dangers of
putting off trips that they can and should take 'now.' Health issues or the
loss of family members and friends taught us all one thing during COVID, that if
you put it off until tomorrow, that tomorrow might never come.
Science has also something to contribute to the matter. According to Cornell
University professor Dr. Thomas Gilovich who conducted a 20-year study on material
possessions versus experiences he said, “In reality, we remember experiences
long afterward, while we soon become used to our possessions. At the same time,
we also enjoy the anticipation of having an experience more than owning a
possession.”
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