Luxury Travel Market Improves?

By | Category: Travel rumblings

One part of the travel market that has been hit by the recession has been the market for luxury holidays. People have traded down from 5 star hotels to a lower star rating. Even places like the Maldives are looking at opening 3and 4 star hotels.
Last December at a luxury vacation exhibition in Las Vegas, visitors were lower and some of the exhibitors that I spoke to were concerned that the market for such holidays would be in a slump for some while. Now that a year has gone by it appears that people are returning to this type of holiday.

A few weeks ago the Luxury Travel Fair was held in London and the word “thriving” was used by the organisers. You would probably expect that. After all what organiser is ever going to say that things are terrible. But it does seem as though the group that likes luxury travel is still enjoying, it is just that they are not spending as much time away or they are staying at UK hotels and resorts.

Now one organiser of villa holidays, CV Travel, has coined the phrase “austerity chic” to describe the new mood. It says that regardless of the type of holiday and the expense you pay, people are now seeking good service and value for money. And Albert Aird of Viking River Cruises confirms that high expectations and personal service seemed to be the key to sales in the luxury market. A recent McKinsey report says that some people who have sampled a less expensive service will stick with it because they would have been happy with it

Like all things there will always be a market for luxury travel and luxury holidays. But has that shrunk from the summer of 2008 for ever as people become more wary or was 2009 just a blip? Now that’s a question a lot of people would like to know the answer to.



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