The luxury market is on the rise, generating slightly more than 1.2 trillion euros globally in 2017, 5% more than in the previous year, according to the study “Luxury Goods Worldwide Market Study” carried out by Bain & Company. According to the same study, luxury hotel hospitality increased by 4% compared to 2016, benefiting from the solid and continued growth in demand for this type of tourism, generating 191 billion euros in 2017.

Furthermore, in 2017 China tops the list of the countries with the highest number of hotels of the 5 star category, 2,490 establishments, followed by Turkey with 800 hotels and by Italy and India. Spain is in seventh position with a total of 335 high-end establishments. Also, London is the city with the most 5 * hotels, followed by Dubai, New York and Paris, according to Five Star Alliance.

Luxury tourism is growing, a total of 615 hotel openings were foreseen in the medium and luxury segments in Europe by the end of 2018. That is, the offer is booming, but … what about the demand? How is the premium tourist and what are his preferences?

From the hotel factory we reveal the four pillars to identify the premium tourist.

1. Tourist Profile

The premium traveler seeks the best, quality and unique experiences, regardless of their cost, as long as they are worth it. Among the characteristics of this type of tourist include:

• Age: Generation X, from 36 to 55 years.

• Preferred travel company: Traveling as a couple without children is the most common way among travelers.

• Frequency of trips: 2-3 trips per year.

• Duration of the Trips: from 7-11 days.

• Average expenditure: between 5,000 and 10,000 euros per trip, although it can go up to 50,000 euros on some occasions, for example, a honeymoon.

2. Travel preferences

¿How is the trip prepared?

When planning their trip, these tourists choose the destination and the overall experience of the trip in the first place, while the choice of accommodation is the third option.

As far as the type of vacation is concerned, relax trips and beach destinations followed by road trips, visiting more than one destination on the same trip, and urban trips stand out.

What type of establishment do premium travelers prefer?

From large international brands to private accommodation or even to yachts. However, the preferred accommodation option for these travelers are the Boutique Hotels. This type of hotels are becoming a more valid option and it is not surprising, since it represents the most current tourism trends: intimate environments and closer treatment, which we will explain later in this article.

In addition, when choosing a premium accommodation, luxury customers value the location and size of the rooms in the first place. Among the most important factors stand out, in addition, an excellent service, a good personal atmosphere, that is, that guests feel at home.

3. Destinations

The destination is the first option when planning a luxury trip, but … How do they decide on one destination or another?

The preference for exotic destinations is a trend, looking for trips with a high originality component. Nonetheless, the classical paths are always maintained: European capitals in addition to any other cultural and artistically significant destination.

Among the different decisive factors for the destination choice the climate and local cuisine stand out. Also, activities, leisure offer and the online reputation of the destination.

4. Trends

Although we have already revealed some of the most relevant luxury tourism current trends, we highlight the 5 priorities of the current luxury client:

• Authentic, but not too much. This type of tourist wants to be immersed, feel part of the destination, but with all the comforts.
• Personalization. The premium tourist feels special and unique. It usually looks for customized deals, services and experiences.
• An ethical look. This traveler likes to feel that he contributes to society. They plan their trips looking for accommodation options that are respectful with the environment.
• A human touch. Technology invades more and more the hospitality sector, automating services that, until now, were carried out bay a person. Like check-in or check-out, for example. However, the guests value a genuine, close and personalized treatment from kind and sincerely positive people.

• Exceeding expectations. The luxury traveler relie on specialists from the sector and put the organization in the hands of third parties, allowing the days and activities to be consulted, agreed upon and designed by professionals, as well as exclusively for them.

Today, the luxury tourism segment is constantly changing and growing, and the level of personalization and the development of experiences is creating increasingly differentiated and innovative products. At the hotel factory, we are in constant contact with the main innovations in the hospitality industry to guarantee to the customer a differentiated product from the rest of the offer according to the new trends that originate in the market. If you want more information about the importance of conceptualization in the hospitality industry and about our repositioning projects, do not hesitate to contact us and ask for advice.