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What are luxury consumers prioritising for their holidays? Who are they travelling with? And what type of accommodation are they most likely to request?
TTG and PwC’s exclusive Agenda 2025 research over early summer asked 2,000 consumers, including more than 200 deemed high income, about their travel priorities, uncovering the reasons why luxury travellers are intending to spend more on their holidays, the types of travel they are looking to take and how these high income consumers compare to the general population.
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40% of consumers | 48% of consumers | 32% of consumers |
Given that wellness/stress reduction is the top priority for a luxury traveller’s holiday choice, it’s perhaps not surprising that relaxing beach holidays top the list for the type of travel luxury customers are looking at. Four in 10 respondents told PwC/TTG this was the main type of holiday they were mulling over for this year.
Luxury respondents noticeably differed from the general population when it came to other types of holidays they are thinking about. A third (34%) were considering a domestic holiday, but this figure was some 12 percentage points below that for non-high income travellers. At the opposite end, experiential holidays that take in culture or nature and activity holidays (such as ski breaks) were named by 23% and 19% of high-income respondents respectively – both at least 10% above the average consumer. Meanwhile luxury travellers were also more likely to be looking at new destinations for their 2025 travels.
More than a third of PwC/TTG’s high-income respondents intend to spend more on travel this year than they did in 2024 (though a similar proportion were expecting to spend the same and one in 10 were 'unsure' so could still be tipped into spending). But those anticipating a higher spend largely feel this is because holidays will be more expensive this year. Other reasons for a higher spend on holidays this year include taking longer holidays, anticipating a higher spend while on holiday and taking more holidays throughout 2025.
A luxury resort hotel was a top choice for luxury consumers for holiday accommodation (Credit: iStock.com/mgstudyo)
Hotels and rentals are a luxury traveller’s top choice for accommodation while on holiday – with some surprising differences to those on lower incomes. While a resort hotel came out as the most favoured type of accommodation (45% of respondents), 38% of respondents also stay in Airbnbs – 13 percentage points above the average consumer, perhaps because these customers are favouring the benefit of private space over all-inclusive options, which also explains why holiday rentals such as cottages and villas were the third most likely type of accommodation a luxury traveller would plump for (35% of respondents). Boutique hotels were also a more popular choice for luxury travellers (27%) compared to non high-income holidaymakers as a whole (16%).
Given the popularity of hotels and rentals, it is then perhaps unsurprising that a luxury traveller would consider a holiday with a variety of people in their family or social circle. While holidaying with a partner or immediate family was the most likely option (62% and 43% of respondents respectively), they were not averse to travelling with friends, or on their own. In fact, a luxury traveller holidays on average with nearly two groups a year, indicating they are mindful of who they want to travel with on different types of holidays.
Alongside geopolitical concerns, extreme weather plays on the minds of one in 10 luxury travellers (Credit: iStock.com/lemon_tm)
A quarter of our respondents said they had no barriers to travelling internationally this year – but for those that did, safety concerns were not far behind rising costs as a factor for caution over holidaying abroad. A fifth were concerned about simply travelling abroad, while only slightly fewer (18%) raised concerns over current geopolitical events, extreme weather in certain destinations (18% each) and international conflict (15%). One in 10 were worried about protests against tourism in destinations – which was likely to at the very least affect where they chose to go this year.
But high income consumers are not being frivolous when it comes to their travel spend. Nearly three in 10 (28%) said the rising costs of holidays was a barrier to them travelling internationally, and 15% revealed that they still have concerns for their household finances, meaning that worries about the UK economy are playing on consumers’ minds, regardless of how much they might want to prioritise a premium or luxury holiday.
Luxury holidaymakers are not averse to holding out for a good deal (Credit: iStock.com/Rockaa)
The research revealed that while 30% of high income consumers surveyed had already booked a holiday for the summer, nearly three in 10 were waiting until potentially even this month to do so. The reasons given – outside typically waiting until late in the day – were centred around getting the best deal. A fifth were waiting to see if holiday prices went down, while slightly fewer (18%) were waiting for last minute deals and 15% were holding on for developments in exchange rates.
When it comes to sustainable travel, luxury travellers broadly mirror the general population in the level of responsibility they place on travel providers to practice sustainability. Nearly two-thirds of those surveyed expect travel companies to be sustainable, while a third are adamant that they will not use a company without sustainability credentials.
That said, a higher proportion of luxury travellers are prioritising environmental or ethical factors than travellers among the overall population (12% consider this important compared with 6% among the average consumer). They are also more likely to choose providers with what they feel to be “good” sustainable credentials, or consider more sustainable options when it comes to transport, accommodation or destinations.
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