The comprehensive Conservative election success at the end of 2019 and eventual Brexit resolution herald more stable times after a period of uncertainty – and here at Dovetail, we are focused on the opportunities that this will present for UK travellers.
Excitingly, the annual ‘Pulse of the Industry’ survey recently undertaken by travel consultancy Strategic Vision revealed that luxury travel experts predict a stellar year for the high-end travel industry in 2020, with 70% of the respondents predicting an increase in revenues across the sector. This optimism appears to be reflected by a recent article in The Times, which reported holiday companies had seen ‘leaps of up to 500 per cent in inquiries for luxury trips’ following the election result, as affluent travellers who had, until then, been playing a game of ‘wait and see’ committed to travel. One travel company is said to have had its busiest day in the company’s 32-year history, with bookings jumping 31 per cent.
The demographic of the luxury traveller is also changing. Skift reported that while millennials accounted for 35 per cent of the luxury market in 2019, this will rise to 45 percent by 2025. Meanwhile,members of Generation Z (aged 22 and under) hold incredible power to reshape the industry, with their numbers predicted to comprise up to 40 percent of luxury buyers by 2035.
It’s not only luxury that Gen-Zers will be driving: the luxury they demand will need to have solid sustainability credentials to make it palatable to their increasingly eco-conscious tastes. Thanks, in part, to the extraordinary influence of environmental activist and flight-refusenik Greta Thunberg, a recent study by Booking.com showed that 54% of Gen-Zers will take environmental impact into consideration when choosing a destination, while 56% would favour green or eco-friendly accommodation.
With the global luxury travel market expected to grow to $2.5 trillion by 2025, it will be interesting to monitor how these shifts impact on trends and elicit travel industry responses. In the short term, the outlook for 2020 looks promising: sterling has been buoyed, consumer spending is beginning to increase and the younger generations, who are starting to buy into luxury travel,are shaping the future of the industry. We look forward to seeing what the year brings.