Globally-minded and social media-inspired, Millennials and Gen Z aren't just overtaking the luxury market, but the travel industry as well. Photo / 123rf
Globally-minded and social media-inspired, Millennials and Gen Z aren't just overtaking the luxury market, but the travel industry as well. Photo / 123rf
Hear the word "luxury" and it's hard for our mind not to jump to the quintessential images of grandeur; silver service restaurants and first-class tickets, white fluffy bathrobes and expensive shopping sprees. Days dedicated to nothing but being pampered into a state of bliss.
Defined as an "inessential, desirable state that is expensive or difficult to obtain", luxury has long been the raison d'être for many a traveller. Born during the early 1900s, leisure travel involved wealthy Americans hopping aboard fantastically lavish passenger ships bound for Europe, as a sign of status.
We've come a long way since those opulent streamliners and the truth is that, as travellers, tastes and trends have changed, so has the definition of "luxury".
Spurred along by cheap flights and Instagram brags, Millennials and Gen Z travel more than any previous group. Photo / 123rf
Historically, the lavishness of a trip was determined by objects (think crystal glasses of fine wine or penthouse suites with priceless views). However, a new generation of jet setters and their particular values are changing the luxury travel industry from one marked by expensive extravagance to personalised experiences that are purpose-led, ethical and enriching.
Cast an eye over the luxury market and you may be surprised to see it catering to a large percentage of Millennials. The 2019 Luxury Goods Worldwide Market Study reports that millennials account for 35 per cent of the luxury market; a number that will grow to 45 per cent by 2025. They aren't the only ones to watch either, with the same study estimating Gen-Zers to hold 40 per cent of the market by 2025.
Globally-minded and social media-inspired, Millennials and Gen Z aren't just overtaking the luxury market, but the travel industry as well. Spurred along by cheap flights and Instagram brags, these generations travel more (when lockdown restrictions allow) than any previous group, meaning their values and aspirations hold key insights for how luxury travel will develop in coming years.
Luxury is…Customised
While buying a house or owning a car were the ultimate symbols of freedom and maturity for generations gone by, the youth of today now consider travel to be the primary aspiration. The trips they take are often seen as an extension of their own identity.
It then makes sense that luxury has become less about objects anyone can purchase but customised, one-of-a-kind, experiences that reflect one's unique identity.
Travel companies like Carrier, Untold Story Travel and Abercrombie & Kent all report an increased demand for personalised itineraries that focus on a person's individual interests or purposes.
A new generation of jet setters and their particular values are changing the luxury travel industry. Photo / 123rf
Luxury is…Purpose-led
Just a few years ago luxury travel was largely defined by lavish locations like the fashion-forward streets of Milan or sun-drenched islands of Mykonos. Now, as we increasingly use travel to express and explore our identity, luxury travel has matured from "where" to the "why"; the purpose that lies beneath the journey.
Anna Guillan AM, a consultant at Kerzner International explains: "the shift from developed destinations, manufactured experiences, lavishness and opulence has moved to authentic, local, regional and crafted." She describes how this shift is driven by travellers' fundamental desire to create experiences that are authentic, enriching and fulfilling.
Luxury is…Ethical
From their trendy canvas bags and organic cotton clothes to reusable keep cups and electric cars, it's no secret Gen Z and Millennials prioritise sustainability and social responsibility when it comes to spending cash.
This is no different when it comes to their luxury travel.A 2020 study by Expedia Group Outlook found Gen Z travellers were the demographic most likely to consider sustainability when travelling (67 per cent), and prioritise travel businesses with environmentally friendly practices.
Make no mistake, young travellers still want luxurious experiences and plush comforts, they just want to enjoy them with a clear conscience too.
A recent study found that 86% of 18 to 29-year-olds valued sustainable travel options when it came to booking a trip. Photo / 123rf
Luxury is…Wellness
If you weren't fussed on juice cleanses, organic cooking classes, yoga retreats and meditation resorts, chances are these health-enhancing experiences have become pretty attractive after months of lockdowns and virus scares.
However, the relationship between wealth and wellness has been trending for a few years already. A complete 180 from previous centuries, where indulgence and relaxation were the height of extravagance, we now see luxury holidays as a way to invest in our health and wellbeing. Leading international hospitality groups like SBE have reported a "significant rise" in demand for health and wellness services across the globe.
The relationship between wealth and wellness was already trending a few years before the pandemic. Photo / 123rf
Luxury is…Off the Grid
Born or raised with a phone in their hand, Millennials and Gen Z are likely to find the presence of technology in their life not just helpful but exhausting.
Tech is not solely a set of helpful tools and platforms but also as a thing to be escaped from time to time. An attitude that increasingly sees digital detoxes marketed as the ultimate form of indulgence.
While just a few years ago flashy digital devices were a mark of luxury and status abroad, the constant presence of phones and screens in daily life has made 'unplugging' an aspirational luxury not everyone can afford.
According to a recent UK study, 42 per cent of consumers see rest and recharging as a top priority for post-Covid holidays, while a third express a desire to escape the noise of daily life and reconnect with nature, something everyone, regardless of age, can no doubt sympathise with as we reach the end of 2021.
