ITB Berlin and IPK International report: Luxury travel increases
According to the ITB Berlin and IPK International report published this year, luxury travel proves to be the strongest growing market segment worldwide. IPK International is a tourism consulting company highly qualified in travel research, tourism marketing, tourism master plans and counts among the leading tourism consulting groups worldwide. The report reveals that luxury travel has increased by 48%, where all other types of foreign trips grew by 24% within the last five years.
The World Travel Monitor, conducted by IPK International and commissioned by ITB Berlin define luxury trips as all short trips which spent more than 750 euros per night, and all long trips that had spent more than 500 euros per night. 2014’s report shows 46 million international luxury trips took place worldwide.
Reports also reveal that more than 1000 euros were spent per night by luxury travellers from United Arab Emirates, India, Kuwait, Brazil, Australia, Canada, and China. USA proved to be the largest source market with a total of 9.2 million luxury trips and China with 6.9 million luxury trips. Japan, Canada and Australia also prove to be emerging source markets for luxury travellers. Chinese travellers showed an increasing growth rate in luxury trips followed by USA, Canada, Taiwan, Korea and the UAE. Russia showed a steady growth rate but decreased last year possibly due to the economic recession.
Dr. Martin Buck, Messe Berlin’s Director of Travel & Logistics, commented: “Many travellers define luxury differently today to previously. Instead of magnificent hotel furnishings or so-called ‘bling-bling’, an experience that is priceless in its own way can be enormously valuable. Luxury today means unique experiences combined with the highest levels of comfort and individual services. An increasing number of people are ready to spend a lot of money for quality. The international travel industry has responded to this trend and is profiting from the growing number of travellers who want to enjoy luxury again after financially turbulent years. The real luxury, as the results of our Luxury Lab at this year’s ITB Berlin showed, is having time.”
The report also reveals that tour holidays are the most popular type of luxury travel and show a growth in 29%, followed by city holidays, beach holidays and cruises. Half of the luxury travellers use travel agents to book their holidays while the internet is only used as a source of information about destinations.
In the Maldives, luxury travel continues to account for the majority of arrivals. According to HVS Singapore In Focus: Maldives report published in April 2015, out of 111 resorts in the Maldives, 62% are categorised as luxury to upscale properties. The luxury market saw an increase by 8% in RevPAR ( Revenue per available room) in 2014, while occupancy remained consistent with the previous year.