Latest news with #HighNetWorth
Forbes
5 days ago
- Business
- Forbes
High Net Worth Travelers Are Balking At Increased Prices, Lower Service
Luxury travel and hospitality providers are facing growing resistance to higher prices; however, it's not clear whether high-net-worth customers are curtailing their spending. A survey of travel consultants who specialize in high-end travel found 'most advisors are reporting healthy revenues, strong forward bookings, and continued appetite from high-net-worth clients. But underneath that rosy picture are signs of subtle but important shifts.' When it comes to dipping into their wallets, the percentage of clients willing to spend more for exclusive and bespoke experiences dropped from 89% in 2024 to 73% this year. What's more, 59% of travel advisors say customers are waiting longer to make final decisions. The report attributes the hesitancy to 'growing caution in the face of rising costs.' The Pulse of the Industry survey from Strategic Vision concludes, 'Clients remain price-conscious and more deliberate in their choices — opting for different hotels, tweaking itineraries, and sometimes choosing different destinations when pricing doesn't align with expectations.' The survey comes as Virtuoso Travel Week gets underway Saturday in Las Vegas. The annual conference brings together travel advisors who are part of the Virtuoso Travel network – they sell around $30 billion in travel per year – and executives of travel suppliers, including managers of five-star hotels and top executives of hotel groups, cruise lines, expedition companies, destination promotion boards, and local companies that often organize that after-hours access and VIP treatment. The report says, 'Growth is bringing its challenges. Advisors are juggling high demand with limited staffing and rising client expectations.' Strategic Vision President Peter Bates says, 'Luxury travelers are still willing to spend — but they're asking more of their advisors. They want meaning, they want value, and they want it delivered seamlessly. That's not a challenge: It's an opportunity to elevate what we do.' According to the survey, 51% of advisors cited high prices as their biggest obstacle, with 68% of respondents saying clients changed hotels due to pricing. More than half of advisors (55%) say clients have changed destinations entirely based on cost. Still, demand is strong with 63% saying bookings are ahead of last year. So, what's making the wealthy get out their black cards? Interest in trips for rest and relaxation has decreased by 10 points, from 43% to 33%. At the same time, 84% of advisors say there is a higher interest in celebration travel planned around birthdays, anniversaries, and destination weddings. Spending time with family (76%) and discovering new places (73%) ranked highly. Buzzy travel categories, such as transformative experiences, are rated just 45%, which is still a significant number. Bates says, 'The buzzwords may evolve - from experiential to slow to transformational - but ultimately what we're selling is the same: travel that fulfills a personal need. Your messaging should speak to emotional drivers — family bonding, cultural immersion, personal milestones — rather than generic luxury cues.' However, rates that can often exceed $1,000 for entry-level hotel rooms are causing pause. The advisors also say service isn't keeping up with prices. According to Strategic Vision, 'Clients are more willing to change plans based on perceived ROI and service quality — especially when pricing doesn't align with expectations.' Nearly a quarter (24%) of advisors said 'inadequate service delivery from suppliers' was a top challenge. Despite increases in prices on land and the water, 75% of advisors say they are seeing more interest in expedition cruises, with 57% pointing to river cruises as a hot segment. With paying more seeming a given, the advisors say having that perfect or near-perfect experience is more important than ever. Almost one-third of respondents (31%) said overtourism was an obstacle to selling popular destinations. Travel suppliers can take heart that they are not alone when the wealthy push back on pricing. A current survey by Private Jet Card Comparisons of private aviation flyers shows 59% of respondents citing increased prices as the top reason for considering a change of flight providers. That's down from 65% last year. However, 25% say they have been frustrated by flight delays, cancelations, or changes with 17% saying aircraft cabins were in poor condition, and 16% pointing to declining customer service. Still, there are hints that despite increased prices and service issues, HNWs are still going to spend. Private jet flying, as tracked by ARGUS and WingX, has rebounded after two years of slight declines and is approaching the record levels seen in 2022. What's more, over 95% of HNWs who started flying during or after Covid are sticking with it and of those responding who were flying privately before the pandemic, while the majority say they are flying privately a similar amount, those who have increased use of private aviation are outstripping those who have cut back by a greater than four-to-one margin.
NDTV
7 days ago
- Business
- NDTV
India's Wealthiest 1% Holds 60% Assets In Real Estate, Gold: Report
New Delhi: The top 1 per cent of India's wealthiest citizens have parked 60 per cent of their money in real estate and gold, according to a report on Monday. This segment of 'wealthiest citizens' is comprised of Ultra High Net Worth Individuals (UHNI), High Net Worth Individuals (HNI) and the affluent class, which accounts for only 1 percent of Indian households but controls nearly 60 per cent of the country's total assets, the report by US-based wealth management firm Bernstein said. This segment holds $11.6 trillion in total wealth and 70 per cent of India's financial assets, the report said. India's total household wealth is estimated at $19.6 trillion, out of which $11.6 trillion, or 59 per cent, is held by this wealthy segment of the population. Out of this, only $2.7 trillion is invested in serviceable financial assets that can be actively managed or reallocated, such as mutual funds, equities, insurance, and bank or government deposits. The remaining $8.9 trillion is held in non-serviceable assets, including gold, cash holdings, promoter equity, and physical real estate, according to the report. The report indicates huge growth potential for asset management firms to grow their assets under management (AUM) over the next decade, as India's affluent class is looking for avenues to diversify their portfolios beyond gold and real estate. The report highlighted how this wealth segment remains largely underpenetrated by formal wealth management services, with a considerable portion of financial wealth unmanaged. In a previous report, Bernstein had mentioned that specialised wealth managers currently hold only 11 per cent share in the liquid financial asset pool of India. The findings also underscore a broader structural trend in India: while income inequality is high, wealth inequality is even starker. "The top 1 percent earns 40 percent of all income, while the 'Rest of India' holds only a small fraction of both income and assets," the report said. There are approximately 35,000 UHNI households whose net worth surpassed $12 million (Rs 100 crore). These households have an average asset value of $54 million (Rs 472.5 crore), including $24 million (Rs 210 crore) in financial assets. According to the report, this affluent segment collectively held $4.5 trillion in financial assets, which amounts to 70 per cent of the country's total financial wealth.
Business Recorder
7 days ago
- Business
- Business Recorder
Dubai attracts 9.88mn international tourists in first half of 2025
Dubai welcomes 9.88 million overnight visitors from January-June 2025 - an increase of 6% compared to the same period in 2024, according to the Dubai Department of Economy and Tourism. 22% of the visitors came from Western Europe, followed by 15% from South Asia, 15% CIS and Eastern Europe, and another 11% from the MENA region. North East and South East Asia (9 per cent), the Americas (7 per cent), Africa (4 per cent) and Australasia (2 per cent) rounded up the primary source markets. 'Dubai continues to set new records in international visitation, reinforcing the strategic vision of Mohammed bin Rashid to make the city a major global business and tourism destination,' Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defence, and Chairman of The Executive Council of Dubai announced in a post on X. Dubai sets new record of 18.72 mn international visitors in 2024 Hotel average occupancy reached 80.6 percent, up from 78.7 percent in the first half of 2024. This development builds on Dubai's accelerated growth in the tourism sector. In 2024, the city set a new record for international tourism in 2024, welcoming 18.72 million overnight visitors overall – marking a 9 per cent YoY increase, according to the Government of Dubai Media Office. The UAE's tax-friendly policies, strategic location, ease of doing business and visa access are facilitating this growth, as Dubai remains poised to welcome record tourists, as well as attracting High Net Worth Individuals (HNWIs) to the UAE.
India.com
7 days ago
- Business
- India.com
India's richest people's secret revealed! 60% of super-rich invest money in only these 2 things, they are…
The widening gap between the rich and the poor in India can be seen in a recent report. Global asset management firm Bernstein revealed in its report that the top 1% of the country's wealthy population holds nearly 59% of the total wealth. These individuals primarily focus on just two investment sources, where they allocate most of their money. The report refers to them as the 'uber rich,' which includes Ultra High Net Worth Individuals (UHNI) and High Net Worth Individuals (HNI). India's 60% Uber-rich's Wealth In Real Estate And Gold Around 60 per cent of India's Uber rich wealth is still parked in real estate and gold, according to a report by Bernstein. Uber rich individuals include Ultra High Net Worth Individuals (UHNI), High Net Worth Individuals (HNI), and the Affluent class. The report stated 'Uber Rich own approx. USD 2.7 Tn in serviceable assets, approx. 60 per cent wealth still parked in real-estate & gold'. As per the report, India's total household assets are valued at USD 19.6 trillion. Out of this, USD 11.6 trillion, which is 59 per cent, is held by the top wealth bracket referred to as the 'Uber Rich'. This group includes the Ultra High Net Worth Individuals (UHNI), High Net Worth Individuals (HNI), and the Affluent class. 1% Hold 60% Of Total Assets Together, they account for just about 1 per cent of Indian households but hold 60 per cent of the total assets and 70 per cent of the financial assets in the country. Of the USD 11.6 trillion held by the Uber Rich, only USD 2.7 trillion is considered to be in serviceable financial assets like direct equity, mutual funds, insurance, and bank or government deposits. This USD 2.7 trillion is defined as the 'Serviceable Addressable Market (SAM)' for wealth managers, suggesting that this segment of financial assets can be actively managed, advised on, or invested. As per report, the remaining USD 8.9 trillion is parked in non-serviceable assets such as physical real estate, gold, promoter equity, and currency assets, areas that are traditionally not managed by wealth managers or are harder to reallocate easily. (With Inputs From ANI)
Economic Times
04-08-2025
- Business
- Economic Times
Around 60% of India's uber-rich's wealth parked in Real Estate and Gold: Bernstein Report
ANI Around 60% of India's uber-rich's wealth parked in Real Estate and Gold: Bernstein Report Around 60 per cent of India's Uber rich wealth is still parked in real estate and gold, according to a report by Bernstein. Uber rich individuals includes Ultra High Net Worth Individuals (UHNI), High Net Worth Individuals (HNI), and the Affluent report stated "Uber Rich own approx. USD 2.7 Tn in serviceable assets, approx. 60 per cent wealth still parked in real-estate & gold". As per the report, India's total household assets are valued at USD 19.6 of this, USD 11.6 trillion, which is 59 per cent, is held by the top wealth bracket referred to as the "Uber Rich".This group includes the Ultra High Net Worth Individuals (UHNI), High Net Worth Individuals (HNI), and the Affluent class. Together, they account for just about 1 per cent of Indian households but hold 60 per cent of the total assets and 70 per cent of the financial assets in the the USD 11.6 trillion held by the Uber Rich, only USD 2.7 trillion is considered to be in serviceable financial assets like direct equity, mutual funds, insurance, and bank or government USD 2.7 trillion is defined as the "Serviceable Addressable Market (SAM)" for wealth managers, suggesting that this segment of financial assets can be actively managed, advised on, or per report, the remaining USD 8.9 trillion is parked in non-serviceable assets such as physical real estate, gold, promoter equity, and currency assets, areas that are traditionally not managed by wealth managers or are harder to reallocate down the Uber Rich group further, the report showed that there are around 35,000 UHNI households with a net worth of over USD 12 households have an average income of USD 4.8 million and average assets of USD 54 million, out of which USD 24 million are financial the Uber Rich control USD 4.5 trillion in financial assets, nearly 70 per cent of the country's total financial assets. The report also highlighted that there is a significant opportunity for Indian wealth managers, especially in servicing the country's ultra-wealthy households. It pointed out that income disparity in India is significant, but wealth disparity is even more top 1 per cent earns 40 per cent of all income, while the bottom majority, or the "Rest of India," holds a very small portion of both income and assets.
