If 2019 was the year that luxury became an experience, 2020 will be the year that those experiences become personalized, say experts on the $1.42 trillion luxury industry.
For some years, traditional luxury brands have been characterized by standardization that has resulted in a kind of burnout among their target demographic. All that is about to change. And the Millennials and Generation Z cohort who are among the biggest luxury buyers could not be more pleased.
Travel: The Ultimate Luxury
In 2019, travel had the edge in luxury spending by category. First-class plane tickets, accommodations on private jets and similar expenditures accounted for 36 percent of all spending among individuals who regularly purchase luxury goods; and 30 percent of all spending among individuals who purchase luxury goods to celebrate special occasions.
As social media sharing veers ever more sharply into personal branding, experiences have emerged as a prime differentiator, and travel to an exotic destination is the ultimate experience.
In 2020, expect travel to expand its market share among luxury consumers.
The Expansion of Ancillary Markets
As travel solidifies its hold on the imaginations of luxury consumers, one can anticipate a spike in the demand for ancillary goods related to that market as well. Take the sale of private jets, for example.
Notes Jeffrey Carrithers, CEO of GlobalAir.com, the internet’s largest and most comprehensive aviation resource, “Though it may look like a substantial decline in aircraft sales of private jets, the good news is that most market forecasts of private jet demand are steadily increasing each year.
With more and more companies using charter, fractional, and jet card operators due to economics, shorter waits in security lines, airports that commercial aircraft can’t get into, lifestyles of the newer generation, or for the simple fact that pricing is comparable to a first-class airplane seat, who wouldn’t want to fly in a private jet?”
The Top Luxury Travel Trends in 2020
What are some developments in the luxury travel market to watch for in 2020?
• Unspoiled destinations: Luxury travelers no longer want to frequent the overcrowded beaches of Ibiza or the polluted waters off Phuket. Instead, they are flocking to places like Borneo, Oman and Greenland.
• Local encounters: Increasingly, upscale travelers are trying to get to know the destinations they are visiting at a granular level. This often entails reaching out to locals whether that might be wine tastings curated by the owner of a local vineyard or a personal escort who will guide them through a bustling street market.
• Minimizing stress: Personalized airport meet-and-greet services are a hot trend. They enable upscale travelers to avoid the stress associated with changing terminals and standing seemingly forever in long TSA lines.
The luxury travel market is here to stay in 2020, and the best way for travel brands to get in on the action is to focus on personal experiences.