Research shows that people are itching to start traveling again – and luxury travel, in particular, is leading the recovery. Approximately 78% of consumers say they are eager to travel in 2021 simply to help them unwind and relax from all that has transpired within the last year, whether local or luxury travel. Approximately 63% of consumers feel excited about planning their next trip, with 53% stating that the planning process makes them both happy and hopeful for the future.
While the local travel markets may see an uptick in 2021, many in the luxury market – which came to a grinding halt in 2020 – wonder what they can expect moving forward. Encouraging a comeback will require luxury brands to meet ever-increasing customer expectations.
3 Trends You Need to Know as Luxury Demand Recovers
While some are still leery about making travel plans, many are eager to explore the world around them. If luxury travel brands want to cash in on those itching to get back out there, there are some expectations that they’ll need to be aware of.
1. Customers Want Their Money to go Further
First things first, luxury travel brands need to realize that consumers are looking to save a buck anywhere they can. The pandemic did a number on people’s budgets, and they must make the most of every dollar they spend. On the other hand, with so many consumers scrimping and saving in 2020 and many postponing or cancelling their travel, search interest for “luxury hotels” is at its highest point since 2007.
According to the American Express Trendex poll, 61% of travelers plan to spend more than they normally would on a trip this year. Brands have an opportunity to offer multi-tiered package deals that give customers more for their money.
When done right, these initial incentives will get new clients in the door. Back it up by welcoming guests back to travel with exceptional customer service to encourage repeat visits.
2. Personalized Experiences Drive Loyalty
Loyalty programs are more influential than ever before – especially when it comes to luxury travel. 83% of consumers say that a loyalty program will influence their decision to book with/patronize a travel/hospitality brand.
However, in light of the pandemic, luxury hotels and resorts had to find a way to stay relevant and encourage activity by consumers. The way people portray luxury travel has changed significantly, and approximately 82% of travelers state they prioritize those brands/programs that offer the most personalized experiences. Brands need to get creative, not only acknowledging guest travel preferences but working to deeply understand your loyalty members as individuals so you can personalize each step along the guest journey to retain and grow loyalty.
3. WFH a.k.a. Work from Hotel, the New ‘Bleisure’
While most travel is still restricted, those heading out into the world are taking advantage of remote work options and mixing business with leisure. With many companies instituting partial or fully remote policies, professionals are looking to hotels to provide a hybrid working environment and make their tropical Zoom background a reality.
Luxury brands and travel agencies should prioritize advertisements of amenities such as clean work areas and options such as premium Wi-Fi to allow visitors to tend to their business while still fulfilling their wanderlust.
Don’t Wait to Start Addressing Your Luxury Clientele
With vaccines more widely available and fears of transmission beginning to decline, more and more people are looking to set out on their next great adventure. With these insights in mind, luxury travel brands can take advantage of the latest wave of wanderlust – and the MODIV team can help.
Looking to boost your lead generation among luxury clientele? Contact the MODIV team today.