Report finds luxury travel demand is strong amid economic uncertainty

The Herald Scotland

15-05-2025

"The Luxury Travel Report by Preferred Hotels & Resorts reveals that today's affluent travelers are investing not just money but meaning into their journeys," the brand said in a news release. "Luxury travelers seek immersive, curated experiences that feel personal and enduring - avoiding generic, mass-produced offerings in favor of authenticity and emotional connection."
Luxury travelers plan to spend more on travel
Over half of respondents - 55% - plan to spend more on leisure travel in 2025 than they did last year. The survey found 29% expect those costs to amount to $50,000 or higher for the year, while 34% anticipate spending between $25,000 and $49,999 and 38% said that figure would be less than $25,000.
That doesn't mean they aren't feeling financial pressures. Per the report, "75% of luxury travelers adapted their travel habits in response to rising costs" and an unclear economic picture. Those tactics include offsetting costs through memberships and loyalty points (47%), traveling to high-end hotels during the off season (36%), and putting quality over quantity of trips (32%).
What else are luxury travelers looking for?
Travelers were also polled on their travel priorities, from the types of trips they're taking to the hotels they're looking for:
Ninety percent had one or more international trips planned, with France (25%), Italy (23%) and Canada (20%) among the most popular destinations.
All-ages trips were on the agenda for many surveyed, with 71% of respondents taking at least one multigenerational trip within the next year.
Respondents were looking for character in their accommodations. Among those surveyed, 67% agreed that "modern luxury hotels have sacrificed soul for standardization," and close to three quarters said they wouldn't pay for generic-looking luxury lodging.
Travelers were also intent on connecting with the past. The report found that 95% wanted to integrate "historic experiences" into their trips.
The full report is available here.
Age and inflation concerns affect travel plans
A separate report from the consulting firm Simon-Kucher found travel looks different across generations.
It found that while younger generations frequently opt for affordability over luxury when booking travel accommodations, only 32% of Baby Boomers are willing to do the same.
Shikha Jain, a partner at Simon-Kucher, said that's not surprising as those post-retirement are likely to spend more on comfort while younger travelers are more focused on experiences outside of their hotel rooms.
Jain said consumer expectations around tariffs might also be playing a role in vacation planning. She said while some high net-worth travelers would be somewhat immune to price hikes, some fear predicted higher inflation could lead to wage increases that drive up the cost of services and travel in the future.
"They are buying joy, control, and comfort before those types of experiences get expensive," Jain said. "They are bracing for a future where premium is more expensive and less accessible."
Despite inflation easing to a four-year low in April, consumer confidence continued to fall as Americans perceive risks in multiple aspects of the economy, citing uncertainty around trade policy and concerns that inflation could resurge.