Affluent Travelers Are Spending More, But Not With Agents

While affluent consumers plan to spend more on leisure travel in 2013 than they did last year, they are surprisingly value-conscious. They also are growing less inclined to book through a travel agent (see sidebar).

Those are among the conclusions of a new survey, Affluent Consumers & Their Travel Plans for 2013, by Unity Marketing, a market research firm specializing in the luxury segment.

The survey, which compared results with those in surveys conducted in 2012 and 2011, is based on feedback from 1,300 consumers with an average income of $267,800 and an average age of 45.4 years.

Planning to spend more
Forty-five percent of respondents said they plan to spend more on vacations this year than in 2012.

The Caribbean and Las Vegas were their two top destination choices. Asia and Australia/New Zealand were among destinations growing in popularity.

The average length and frequency of vacations is not likely to change this year compared to 2012, the survey concluded. In 2012, research found that luxury travelers took, on average, 2.8 separate vacations of four days or more.

The survey results indicate that consumer confidence in the U.S. economy is growing. But Pam Danziger, president of Unity Marketing, cautioned against being overly optimistic. “The economic picture is really not all that rosy – and people could pull back,” she said.

“However, it really did pop out at us that people are saying they plan to spend more. Whether they actually will or not, we can’t say.”

Savvy shoppers
The survey concluded that affluent travelers are savvy shoppers who strive to make the most of their frequent flyer points and are rarely willing to spring for first class air travel.

It also concluded that “getting discounts from travel providers” was more important in 2013 than previously.

“It’s often assumed that affluent consumers don’t care about things like loyalty points, but the higher their income, the more diligent people are about using their mileage rewards,” Danziger said. “They tend to be shrewd and careful consumers. After all, they didn’t get rich by spending all their money.”

Experiences a priority
Where affluent travelers are most likely to spend freely is on hotel accommodations and on experiencing the destination to the fullest, Danziger said.

“They are willing to spend on their accommodations, but that doesn’t necessarily mean a five-star resort,” she said. “It could mean a boutique hotel if that is where they will get more of a local feel.”

The experiences most often cited as desirable were relaxation/stress reduction, sightseeing, and fine dining/food and wine. All of these rose in importance over previous years.