【By Observer Net, Deng Jun, Editor: Zhao Qiankun】
According to a report by the British magazine The Economist, despite the uncertainty in the global economy suppressing consumption on luxury goods, spending on luxury travel has not declined.
In May this year, consulting firm Bain & Co released a report stating that it expects global luxury sales to fall between 2% and 5% for the year, a significant downward revision from its earlier forecast of 0% to 4% growth in November 2024. This means that after a 1% decline in the industry in 2024, the luxury market will further weaken.
However, The Economist cited data from consulting firm McKinsey & Company, which indicated that global luxury hotel spending is expected to exceed $390 billion (approximately RMB 277.8555 billion) by 2028, while the figure was less than $240 billion (approximately RMB 170.988 billion) in 2023. Accor Group CEO Sébastien Bazin also set a target—planning to increase the contribution of its luxury hotel business to the group's cash flow from about 35% currently to 50% by 2030.
The Economist magazine
McKinsey's prediction is not without basis.
The report stated that data from U.S. real estate data company CoStar Group showed that luxury hotel revenue per available room has been higher than the same period last year this year, while revenue from economy rooms has generally declined. Data from Chase Travel, a subsidiary of JPMorgan Chase & Co., also showed that first-class ticket bookings increased by more than 20% from June to August this year. Additionally, international aviation data company IBA (International Business Aviation) predicted that approximately 820 private jets will be delivered globally this year, representing a 7.3% increase.
According to the U.S. Consumer News and Business Channel (CNBC), on October 9, 2025, Delta Air Lines announced that revenue from premium cabin tickets in the previous quarter grew by 9% compared to the same period last year, reaching nearly $5.8 billion (approximately RMB 41.345 billion), while revenue from main cabin tickets fell by 4% compared to the same period last year. Delta Air Lines executives said they expect premium cabin revenue and other high-priced cabin segments to surpass economy class in 2026.
The Economist magazine
As an important growth engine in the global luxury tourism market, the Asia-Pacific region has also shown remarkable performance.
According to TTG Asia, an international tourism media outlet, a survey conducted by Marriott International's luxury hotel group in the first half of the year targeting high-net-worth travelers in the Asia-Pacific region found that 72% of respondents plan to increase their travel spending within the next 12 months, with the strongest intentions in Australia (85%), Indonesia (81%), and Singapore (80%). Although the frequency of travel by these affluent travelers has decreased, they are more inclined to increase their budget for truly valuable destination-based travel.
Additionally, according to the international tourism media outlet "Travel And Tour World," China's luxury tourism market has seen significant growth in recent years, with an increasing number of young travelers pursuing more culturally rich, personalized, and sustainable travel experiences. This trend not only reflects the upgrading of Chinese consumers' taste but also reflects a shift in social values.
A report from U.S. consulting firm GVR (Grand View Research) showed that China's luxury tourism market revenue reached approximately $94.37 billion in 2024, and is expected to rise to $155.57 billion by 2030, with a projected compound annual growth rate of 8.8% during this period.
A recent report from Singapore's travel industry media outlet Travel Weekly-Asia noted that MDRi, a Hong Kong-based business insight consultancy, surveyed 1,000 high-net-worth individuals in mainland China (with an average liquid asset of about $1 million) and found that 98% of respondents planned to travel during the National Day holiday this year, with Hong Kong (55%) and Singapore (24%) being the most popular destinations. Among them, the average budget for visitors to Hong Kong was about RMB 28,000, while the budget for those traveling to Singapore was slightly higher at RMB 30,400. It is expected that these high-net-worth individuals will create new highs in consumption during the National Day holiday.
Data provided by Tongcheng Travel to Observer Net shows that during this year's National Day holiday, users in first-tier cities preferred custom tours to enhance the quality and comfort of family trips. For example, a Shenzhen user booked a two-day family custom tour during the holiday, with per capita consumption exceeding RMB 40,000, reflecting a pursuit of personalization and high-quality service.
MDRi's report states that this year's National Day holiday sees Chinese affluent travelers reshaping tourism trends and setting new benchmarks for tourism marketing, luxury retail, hotels, and events in the Asian region.
Although the luxury tourism market has a promising future, can its prosperity continue? The Economist magazine points out that luxury tourism companies may face similar challenges as the luxury goods industry in the future.
The report stated that since the millennium, luxury brands have begun to try to attract middle and high-income consumers, but this strategy made the brands more vulnerable during economic fluctuations. Post-pandemic, luxury brands attempted to meet the "revenge spending" trend by raising prices, but the results were generally below expectations.
Currently, some luxury hotels are also adopting strategies similar to those of luxury brands, which means they may face the same difficulties as luxury brands.
McKinsey data shows that the share of luxury hotel spending from ultra-high-net-worth individuals (those with assets of $30 million or more) is declining.
Other market analysts have warned that the luxury hotel market may face oversupply: CoStar Group predicts that the number of luxury hotel rooms worldwide will increase from the current 1.8 million to nearly 2.2 million by 2030, growing faster than other segments.
Additionally, London will see the opening of projects such as the Rosewood Hotel and Six Senses Hotel. International real estate service provider Savills estimates that London currently has about 18,750 luxury hotel rooms, with another 1,618 rooms under development.
The Economist magazine reminds us that luxury tourism companies should not only learn from the mistakes of luxury brands but also draw lessons from their successful experiences.
For example, Hermes has grown against the trend in the recent overall decline of the luxury goods market. This company, still run by the founding family, has always maintained a long-term vision: controlling production scale, keeping prices moderately rising, and maintaining a unique brand image.
Some operators of luxury hotels are following a similar path. Take Rocco Forte Group, which owns the Brown Hotel, for example. This family-run group has only 15 hotels. Recently, although its room rates have increased, the increases have basically kept pace with costs. Employees receive systematic training to strive to provide guests with unique experiences, such as the doorman at the Brown Hotel greeting guests by name.
The report pointed out that in today's increasingly questioning of "what constitutes true luxury," personalized high-end additional services may be the answer.
This article is an exclusive piece from Observer Net. Reproduction without permission is prohibited.
Original: https://www.toutiao.com/article/7559507681124385299/
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