Industry Insights: Luxury Travel Continues to Soar

Recommend Standard Image TemplateLuxury Travel Continues to Soar By Paloma Villaverde de RicoVirtuoso sales indicate strong growth for luxury travel sales, with luxury travelers—including affluent family and multi-gen groups—reaching deep into their pockets for that ultimate vacation, relying on luxury travel advisors to create an extraordinary experience. It’s no longer about “keeping up with the Joneses,” it’s about “being the Joneses.”Luxury Travel Advisors Are in Demand…and AI Isn’t Taking OverDuring Virtuoso Travel Week, which took place in Las Vegas last month, Virtuoso’s VP, Global Public Relations, Misty Belles, noted that Virtuoso is not “seeing a slowdown in luxury experiences,” and as a result, “travel advisors are in high demand right now. We have two forces coming together: We have demand for travel that is incredibly high, and we have travelers who can afford it or who will afford it. And the pandemic really brought through the value of the advisor from the advocacy standpoint. “We’ve always said advice, access, accountability, advocacy, value, time savings…those are important factors that you just can’t replicate online or through any other way that you get by using a Virtuoso advisor,” Belles continued. “But I’ll also add trust to that, because as AI becomes much more ubiquitous, having that trusted relationship with an actual human is important.” “Everybody thought travel advisors wouldn’t grow their business, we wouldn’t get enough Millennials, we wouldn’t build the next generation,” noted David Kolner, Virtuoso’s Executive VP. But when pointing to Virtuoso sales for the first half of 2024—skyrocketing 213 percent over the same period in 2019— Kolner added, “this really proves all the critics wrong. The luxury travel advisor…is more relevant than they’ve ever been before.” As part of the data collected for the Virtuoso Pulse Survey, the organization asked advisors the AI question—whether they see it as an opportunity or a threat. Most Virtuoso advisors see it as an opportunity, with Kolner noting, “I think this is related to the overwhelm of business that a lot of people are feeling, and they’re really looking to AI to help advisors be able to be more productive.”Hot TrendsTrends among luxury travelers include a rise in travel to cooler climates, or “Coolcations,” to destinations in northern Europe and Canada, which are up 44 percent this summer, while visits to warmer spots, including Italy, Greece and France, have decreased by .5 percent. Belles noted that Virtuoso asked their advisors for alternative destinations to the more popular vacation hotspots, and they pointed to Slovenia, Portugal and Croatia as an alternative to Italy, and for clients who’ve been to Croatia, recommend Montenegro. An alternative to highly popular Costa Rica? Guatemala, say Virtuoso advisors. Wellness travel is expected to be a major trend this year and into the next, with a focus on “Silver Bullet” wellness—a sub-trend coined by Globetrender in a forthcoming co-authored report with Virtuoso—highlighting hyper-specific, targeted “cures” tailored to individual wellness needs. A survey revealed that 70 percent of travelers are seeking relaxation and disconnection through wellness travel, while half are interested in hyper-personalized experiences and mental resets. Solo female travel, dubbed as “Wander Women” by Virtuoso and Globetrender, has also seen significant growth, with women making up 71 percent of solo travelers. Additionally, as Gen Z begins having children in 2025 (Beta babies), the industry for the first time will see seven generations traveling simultaneously. Legacy travel, or the act of bringing all these generations together to celebrate milestones or to seek nostalgia and reconnection (24 percent according to the 2024 Virtuoso Brand & Travel Tracker study) is becoming increasingly popular. And when surveyed, 32 percent of Gen Zs were planning to travel with children over the next year, with 42 percent of them planning to do so under the guidance of a travel advisor.Fall Travel—Top Destinations This fall, travelers are venturing afar in record numbers, according to Virtuoso data, with Italy, France, Mexico, the United Kingdom, Spain, St. Barts, Portugal, Canada and Japan topping the list. The largest growth areas year-over-year are Canada (+168 percent), Japan (+160 percent) and St. Barts (+155 percent). Major cities like Paris, London, New York, Rome and Tokyo are showing significant increases compared to 2023, while destinations such as Taormina (Sicily), Napa and Amsterdam are seeing rate declines, making this fall a great time to visit. COVERSANDALSTable of ContentsSANDALS SPREADEditor's NotesEDU HOUSE ADIndustry Insights: Luxury Travel Continues to SoarAdvisor Speak: Virtuoso Advisor InsightsMexico/Caribbean: Mexico and the Caribbean Redefine ‘Family-Friendly’CAYMAN ISLANDS SCTHE CAYMAN ISLANDSSAINT LUCIA SCSAINT LUCIAOnsite Review: Upscale Sandals Opens Its Doors in St. Vincent and the GrenadinesOnsite Review: “New” Discoveries in Saint LuciaNorth America: What's New—Florida Family AdventuresLEE COUNTY SCFort Myers Islands, Beaches & NeighborhoodsOnsite Review: Quebec City—History, Culture & CuisineMGM RESORTS SCMGM RESORTSCruise: Setting Sail for Fun—What’s New for Family CruisesOnboard Review: Margaritaville at Sea Islander One-of-a-Kind ExperienceOnboard Review: 10 Reasons to Book Royal Caribbean’s Utopia of the SeasEurope: Onsite Review—Travels in AndalusiaTURKISH AIRLINES