Tips for Finding & Talking to Today’s Luxury Traveler

Luxury is ever evolving, Explora Journeys’ president, North America, Chris Austin told a packed audience at this year’s Travel Market Place East, which wrapped up in Toronto on June 26.

“Luxury is not the same as it was 20 years ago,” he said, before offering insights into who today’s luxury traveler is and how to talk to them.

1. Luxury is subjective
What luxury means to one person is not necessarily what it means for another. The “old” definition of luxury may still apply, but not necessarily.

As defined in the dictionary, the traditional concept of luxury implies opulence and richness. Luxury is fancy and extravagant. But if that’s what advisors assume luxury clients want, they may be missing the mark. 

However, he emphasized, “old luxury and new luxury can have a seat at the exact same table.”

“Don’t ever force your definition of luxury onto a true affluent luxury traveler. It’s important to embrace their definition of what luxury is.”

2. Quiet and intangible
More than ever, Austin told the audience, luxury consumers are looking to experience, and more importantly feel, something. It’s no longer only about labels and status symbols.

“Luxury is an experience, it is not an achievement,” he said. “Luxury is the pursuit of adventure, joy, and connection… they want meaning behind their travel.”

The desire for meaning is what’s driving the trend of “quiet luxury,” Austin said. “Today’s luxury is being reframed. Rather than flashy, showy things meant to improve one’s status, people want meaningful experiences and place great value on the intangible.”

As such, they’re approaching their travels with intention and purpose, making it more important than ever for advisors to find out the “why” of their affluent clients’ travel desires.  

“If you know they are traveling with a purpose, you’ll be able to curate an experience for them that resonates much deeper with them.”

3. Exclusive 
One thing that hasn’t changed much for the luxury traveler is the desire for exclusivity. More than ever, Austin said, he’s seeing the consumers’ quest “for something new, something bespoke and curated” that others don’t have access to.

“They really want to reach the places, the spaces, and the faces that not everybody can,” he said.

He described a private tour of the Sistine Chapel with a member of the papacy as an example of the exclusive type of experiences luxury travelers want.

4. Mindful
At the same time affluent travelers want exclusivity, they also want the hotels they visit, the cruise lines they sail, or the tour companies they use to be sustainable, in all the meanings of the word.

“Luxury is positive and purposeful,” Austin said.

They care about choosing brands that actively play a part in taking care of the environment and the communities they’re located in.

“Brands that not only practice this but communicate it are most attractive,” he said, telling advisors, “Being able to talk about the brand’s environmental forwardness and sustainable practices is important.”

5. Immersive
Going back to that intangibility that luxury travelers are looking for, Austin told the audience that luxury travelers are “gravitating towards authenticity.” 
In other words, they don’t just want to buy olive oil in Italy, they want to see how it’s made.

“People don’t want to just check a box, they want depth. They want to be immersed in a destination,” something he said is often better delivered through “smaller, more bespoke experiences.”

Identifying the luxury traveler
Austin didn’t only provide insights into how to speak to and connect with affluent travelers. He also spoke about who today’s luxury traveler is.

“Luxury travelers are not identified by any singular outward appearance. They could be any of us. They could be all of us,” he said.

The luxury traveler encompasses couples, families, multi-generational groups, friends, and solo travelers.

They encompass all ages as well, though the bulk of luxury travel spending comes from the 40- to 60-year-old demographic. But the fastest growing segment is the 30- to 40-year-old demographic.

While Baby boomers hold half of North America’s wealth and Gex X holds $47.8 trillion, it’s the Millennials that Austin called “a force to be reckoned with.” Not only are they seeing the largest transfer of wealth ever, many are not actually waiting to receive that inheritance before they travel.

Advisors shouldn’t ignore Gen Z either. Research has found that travel is Gen Z’s number one priority.

“They are planning international trips at a higher rate than their parents’ generations,” Austin added.

One thing that all luxury travelers tend to have in common, Austin said, is “being cosmopolitan. They are mindful, world-seekers. They want to meet new people that they can connect with from around the world.”

Don’t discount aspirational luxury
When identifying the luxury traveler, Austin pointed out that about one-third of luxury travelers are classified as aspirational luxury. Meaning, they’re not actually ultra-affluent.

Most people, he explained, at least once in their lifetime, want to step outside their normal travel style and upgrade their experience.

“Of course, they may become repeaters not wanting to step back,” he added.

Make sure you know when your clients are celebrating big events. Keep in touch to know if they got a new job or if the kids are graduating and make sure to present them the opportunity to celebrate with a special trip.

Finding affluent travelers
Austin also offered advice on where to find affluent, luxury travelers.

Start by aligning yourself with other brands that have already done the customer segmentation for you. Partner with a luxury car dealer in your area, a golf club or spa.

Another idea he offered is to target people living in zip codes with high property values.

“Try to mine that location and build your database by creating events that mix existing clients with those new clients,” he said.