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5 reasons luxury travel may bounce back first

Industry leaders share their views on the future of luxury travel and consumer mood

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July 23, 2020

Four months ago, when the world’s borders slammed shut and travel as we know it became something we do in armchairs, not airports, it seemed unimaginable that the global travel industry would be talking about ‘green shoots’ this early. But there are definite signs of a spring awakening, particularly in Australia, New Zealand and the rest of Oceania, where the region’s largely successful suppression of COVID-19 has given new hope that travel ‘bubbles’ and corridors will kickstart recovery sooner than anticipated.

Nobody is surprised that eager consumers are driving the mood, especially in the luxury market where they have the resources to travel privately and securely. Intrepid and destination-savvy, the luxury consumer is already setting sights on international destinations as soon as borders open. “We are already seeing that our average traveller is almost on the verge of desperate to get away somewhere,” says Sujata Raman, Regional Managing Director APAC for Abercrombie & Kent.Still, those guests will have new demands. Safety and hygiene have become the ‘new’ luxury amenities – qualities that stand-alone villas, connecting hotel suites, private group tours, small ships, private jets and rail carriages, and buy-out resorts and islands already have in their DNA.The new challenge for many operators is to provide these health and safety protocols without losing the human connection – the hand-holding – that the luxury customer expects. As Craig Adamson, Managing Director APAC of The Leading Hotels of the World, says, it’s hard to imagine checking into the Ritz Paris with hand sanitiser at the front desk and concierges in face masks. “It takes the romance out of it, doesn’t it?”

With well-seasoned travellers chomping at the bit, we asked five industry leaders for their take on the future of luxury travel and the mood of the consumer.

1. Ready to go

“Outside of the financial ability to do it, the need to travel is in-built within the luxury consumer. Taking that away from them is like taking their oxygen away. We’ve found, from talking to the luxury travel agents and our Leaders Club people, that they are definitely waiting, they’re ready and they’re starting to look at options they wouldn’t have looked at before.”
– Craig Adamson, Managing Director APAC, The Leading Hotels of the World

2. Confident travellers

“We understand travellers’ concerns for travel in the future, but Australians are resilient and confident travellers, especially those who are looking for a luxury experience. In fact, we feel, luxury travel will be the first sector to bounce back. We foresee the appeal to be exactly the same as it was pre-COVID-19.”
– Alice Ager, Head of Sales, Australia, Uniworld Boutique River Cruises

3. Tailor-made journeys