Photo Credits: Four Seasons Explorer, Palau
The luxury travel landscape is undergoing a significant transformation. As the industry continues to evolve, we share some trends we spotted at the ILTM 2024 that reflect a shift in consumer preferences and provider strategies. This year, we are witnessing a cooling-off period for those previously over-touristed destinations, we will witness a significant rise of alternative luxury experiences and a fascinating supply in the making with new hotel openings from major luxury players as well as boutique brands.
1. Correction from 2023
Previously bustling destinations like Amalfi and Paris are experiencing a decrease in visitor numbers compared to last year. While room rates have yet to adjust significantly, downward pressure is evident.
2. Not Cruising
Photo Credits: Four Seasons Yacht Collection
The luxury yachting sector is poised for disruption with new entrants like the Ritz Carlton Yacht Collection and Four Seasons Yachts. These smaller, more personalized vessels are targeting a younger demographic and challenging the traditional cruise market.
3. New Openings
Hotel brands are becoming increasingly aggressive with their development pipelines, leading to multiple new openings in the coming years. Major brands like Six Senses, Four Seasons, and Aman are expanding, while smaller brands such as Rocco Forte and Cheval Blanc are also adding new properties, contributing to the much-needed increase in supply.
4. The Evolution of Boutique Luxury Hotels
Across Europe, a new breed of luxury hotels is emerging, in urban and coastal destinations. These hotels aim for a slightly lower price point than established luxury brands like Four Seasons, Belmond, and Dorchester, focusing on authenticity, value, and unique experiences over sheer opulence.
They may have a lower staff-to-guest ratio, slightly smaller rooms, and more casual dining options, but they are quickly becoming a preferred choice, especially among millennial travellers. Examples include JK Hotels, Fauchon Hotel Paris, Violino D'Oro in Venice, and Vista Palazzo Lake Como.
This year, we are witnessing a cooling-off period for those previously over-touristed destinations with an influx of alternative luxury experiences and a fascinating supply in the making with new hotel openings.