For Growing Ranks of the Wealthy, Travel Is a Priority

Affluent consumers are expected to grow in numbers – and so is their demand for travel, according to the Resonance Report 2013.

Travel industry players who cater to the luxury market confirm those findings.

“The top end of the U.S. leisure travel market is surging, and we are seeing a strong increase in demand – up 14% year over year,” said Phil Otterson, president of luxury tour operator Abercrombie & Kent, which distributed the study earlier this spring.

Unwavering trend
Conducted by the Resonance Consultancy, in partnership with The Luxury Institute in New York, the study surveyed more than 1,200 individuals from the top 9% of American households – those with annual incomes of $150,000 or more. The survey has been conducted annually since 2008.

“Leisure is an unwavering, trend-proof, recession-resilient status symbol. What shifts is the choice of travel companion, destination and experience,” according to the study.

“The study supports our belief that real luxury has three hallmarks: authenticity, flexibility and a sense of well-being,” Otterson said.

Following are selected highlights.

Travel tops the list
While there have been shifts in behavior, the recession has not brought on a “reset of the affluent mindset,” the study said.

Taking exotic vacations, owning vacation homes and taking extended time off continue to rank among the top five “most desirable luxuries,” as they have for the past four years, according to the study.

More time off
The affluent take more time off – and do so more often – than everyone else. They take an average of three six-day vacations a year, according to the study.

By comparison, all consumers devoted an average of just 3.8 days to vacation travel in 2010, according to figures from the U.S. Travel Association.

Family and friends
“Today, the affluent increasingly value their traveling companions as well as their free time,” the study said.

In 2008, 19% of those surveyed said their next vacation would be a romantic get-a-way compared to 29% in 2012. Those planning family vacations jumped from 31% in 2008 to 57% in 2012. Vacations with friends also rose, from 15% in 2008 to 35% in 2012.

Experiential travel reigns
In 2010, 26% of affluent travelers participated in a “once-in-a-lifetime” experience, while 50% said they wanted to do so. By 2012, 32% reported they had engaged in “once-in-a-lifetime” activities on vacation.

“The experience is the thing and stories are clearly winning over stuff,” the study said. “That’s good news for highly differentiated destinations and experience purveyors and curators of many kinds.”

Online trends
According to the study, booking through travel-related websites, including OTAs and supplier sites, is the method used most by nearly 60% of affluent travelers. That average, however, masks significant differences across age groups, it added.

Younger travelers are more likely to book online while the older wealthy use the internet to research travel options and then seek out a travel agent or tour operator to book.