Why luxury holidays are booming

Result

In the last ten years, the proportion of high earners who afford luxury holidays has tripled. Currently, more than one in seven German citizens with a high net household income spends more than €5,000 per person on their main holiday. In comparison, spending on main holidays for the population as a whole averages €1,500 per person.

Reasons

The trend towards luxury holidays among high earners is based on numerous individual reasons. For some, social status symbols play a central role. Luxury holidays make it possible to emphasise one's own social status and offer the opportunity to show off in exclusive surroundings. Others are looking for retreats in an increasingly hectic world to escape the stress of everyday life. Luxury holidays often offer this opportunity and the prospect of undisturbed relaxation in select surroundings attracts many high earners. The desire for unique and unforgettable experiences is also fuelling the trend towards luxury travel. Experienced travellers in particular are looking for unforgettable moments in exotic locations. The constantly growing range of offers for luxury travellers also plays a major role. More and more hotels, resorts and tour operators are gearing their offerings specifically to the needs and demands of high-income travellers. From exclusive accommodation and tailor-made travel packages to first-class service - the range of options for luxury travellers is constantly improving and expanding.

Forecast

For high earners, luxury holidays are increasingly becoming an attractive way to escape the daily grind, disconnect and relax. This group of travellers will continue to be prepared to spend considerable sums on exclusive holiday experiences. This development will lead to a further division when travelling. In addition to the current division into travellers and non-travellers, there will be a three-way split in the future. Firstly, holidaymakers at home who cannot afford to travel for financial reasons. Secondly, the normal travellers who continue to go on holiday once a year, save for it and would rather cut back on their everyday life or shorten the duration of their trip than not travel. And thirdly, luxury holidaymakers, for whom money is no object when travelling and who are prepared to pay for exclusive experiences and first-class service. This tripartite division will characterise the travel industry in the future and make luxury tourism an even more important market segment.