Despite huge impacts of the pandemic after 2 years, luxury travel still can emerge. Luxury tourists prioritize experience over price, are willing to pay more and care more about sustainability, as Virtuoso and GlobalData said in their latest reports.

Virtuoso, the global network of travel agencies specializing in luxury and experiential travel, conducted a survey and showed that luxury travel is booming. Specifically, high-net-worth individuals are planning to spend more and travel more in the coming years.

Another report from data analytics and consulting company GlobalData also revealed that holiday budgets of many travelers are increasing after Covid. Emerging trends include private aviation services, private buyouts of large villas or boutique hotels, and remote working (or workations).

Experience is top priority

Luxury travel is associated with unique or exclusive experiences, as well as personalized services at a high cost. Earlier this year, 85 percent of high-net-worth travelers surveyed by Virtuoso said they were ready to travel, and 86 percent planned to take an international trip.

In Virtuoso’s report, the majority of wealthy travelers are planning to spend more on travel in 2023 than in 2019. Even during the pandemic, they were the ones traveling when everyone else was grounded. Data from the Virtuoso showed travel sales for 2023 pacing 47 percent higher than 2019.

The survey of Virtuoso luxury travelers revealed that 74 percent agree that getting a travel experience that best fits their expectations is more important than price. For example, the average spend increases by 34 percent, from 20,700 USD per person in 2021 to 27,800 USD per person in 2023.

GlobalData’s latest report, titled “Luxury Travel Market Trend and Analysis of Traveler Types, Key Destinations, Challenges and Opportunities, 2022 Update”, said that luxury travelers are seeking experiences that are more immersive and exceptional than in previous years.

Luxury tourism associated with sustainability

According to Virtuoso, “purpose-driven travel remains paramount. Environmentally-friendly philosophies and practices and the preservation of natural and cultural heritage are top-of-mind concerns, especially among Gen Z and Millennials, and many are willing to pay more.”

In Virtuoso’s sustainability survey in May 2022 of around 300 people, more than 80% of respondents said the pandemic has made them want to travel more responsibly. Virtuoso said that number remains consistent with last year’s survey, proving that sustainability continues to be a top priority for luxury travelers.

Meanwhile, 75 percent of respondents this year said they were willing to pay more to travel responsibly, so long as they know how the additional money is being used. About the top trips or destinations they prefer, land-based cultural tours topped the list, followed by river cruising, heritage sites, African safaris and ocean cruising, and island destinations.

Survey takers were also asked for the ways they support sustainable travel. They are reducing food and plastic waste with measures like bringing a water bottle and carrying reusable bags; supporting wildlife conservation; travel during the off-season or to lesser-known destinations; contributing to causes that help the destination and its community; and supporting travel companies with sustainability policies.

Virtuoso added that in addition to luxury travel, wellness-focused trips also see a year-on-year increase in popularity 2021 (13%) vs. 2022 (24%). After the pandemic broke out, health has been one of the top concerns.

According to GlobalData, there’s a growing demographic of high-net-worth individuals rejecting overt displays of wealth in favor of inconspicuous and responsible consumption. Their approach to luxury is driven by ethical living, artisanship, authenticity and sustainability. Experience is the new currency for those who seek self-fulfillment through green travel and eco holidays.

Commenting on the findings, Hannah Free, GlobalData travel and tourism analyst, said: “With travelers determined to make up for lost time, 2022 could see an increase in holiday budgets for luxury travelers, with an uptick in demand for once in a lifetime adventures.”

Thus, surveys by GlobalData and Virtuoso both showed that luxury tourism is on the rise. And the good news is that luxury travelers are increasingly spending more on tourism, which enables them to experience unique products and services as well as contributing to environmental protection. That’s why destinations and businesses in the tourism industry should focus on developing their brands in a unique and sustainable way to attract high-class customers.

Source: Destination Review

The soaring hills with majestic and mysterious beauty have long been an attraction for tourists, especially those who love nature, love to explore, adventure, and learn about the mountain community. Mountain tourism is one of the potential types of tourism thanks to meeting the new needs of tourists post-pandemic.

According to UNWTO, mountain tourism is activities in mountainous areas with distinctive attributes of landscape, topography, climate, biodiversity and local communities.

Like many other types of tourism, mountain tourism can contribute to the growth of local socio-economics. Because mountainous areas are often in remote places, mountain tourism activities are related to nature, rural tourism, community-based tourism, and add value to local products, create jobs and improve people’s lives.

Besides, with topographical and natural attributes, mountain tourism can bring tourists a variety of experiences and activities, especially adventure experiences and sports activities that few places can, such as cycling, trekking, zip-lining, climbing, caving, skiing, kayaking,… or exploration activities such as experiencing mountain scenery, flora and fauna, local cultural heritage.

In many destinations, mountain tourism is closely linked with rural tourism, or community-based tourism, because local communities in these areas often have unique cultures, customs and traditions. This will be a feature that attracts tourists who love to learn about culture, heritage and tradition by visiting craft villages, heritage sites, and discovering local cuisine.

Given these characteristics, the mountain tourism experience is more sustainable and often attractive to the adventurous rather than mass tourists. Especially, after the pandemic, mountainous tourism is considered as one of the potential types of tourism because it meets many new needs of tourists.

Although most people are now fully vaccinated against Covid-19, the risk of infection remains. Therefore, mountain tourism may be safer than other types of tourism for many tourists because it’s outdoor and not crowded, therefore reducing the risk of disease transmission.

As a type of tourism based on nature, mountain tourism offers tourists the experience of living with nature more than other places. It is also the environment that many tourists seek to balance their life and emotions after a stressful pandemic. Moreover, the mountain is also a favorable condition for tourists who care about wellbeing and related interests. In addition to fitness activities such as mountain biking, trekking that tourists can independently experience. There are also many wellness destinations located in mountainous areas, offering travelers spas and wellness treatment with natural therapies.

Capture and develop mountain tourism after the pandemic

In the context that sustainable development and climate change are two of the current issues, mountain tourism development post-pandemic needs to pay attention to them to minimize negative impacts on the environment and society.

Due to the unique natural characteristics of each region, mountain tourism is often seasonal because travelers want to participate in specific experiences such as skiing, visiting seasonal flora, or simply having favorable weather for the mountainous activities. Therefore, in order to avoid crowding during the tourist season, destinations can consider diversifying tourism products throughout the year so that tourists have a variety of options and travel at any time. For example, some mountainous destinations in Europe and North America are often very crowded in the winter because tourists want to participate in winter sports activities. Due to the effects of climate change, the snow season in many places is shorter and the snow is thinner, affecting the tourist experience. Some destinations have changed, attracting travelers to visit in other seasons of the year, by offering new experiences such as cycling, horseback riding, or cultural experiences.

Investing in “green practices” is also one of the ways that mountain destinations can consider developing more sustainable products post-pandemic, such as using local products instead of plastic, using energy more efficiently, encouraging tourists to use low-carbon forms of transportation by incentives, etc.

One of the advantages that only mountainous destinations have is the green space. Destinations that can take advantage of this to design a comprehensive green experience journey for travelers will have the advantage to attract responsible tourists.

Recently, Ha Giang province also has a plan to develop sustainable tourism in Tan Lap commune with the goal of building Tan Lap tourist area in the direction of green tourism. This plan will focus on preserving cultural heritage, developing community-based tourism products, and solving environmental problems well.

Source: Destination Review