A new report out from Flywire, a global payments enablement and software company, shows that despite setbacks brought on by new variants of the COVID-19 pandemic, 72 percent of luxury travelers surveyed are spending more on vacations than they did before the pandemic. And, as the complexities of traveling in the COVID-19 era persist, luxury travelers are increasingly turning to high-end travel advisors, with 85 percent believing travel advisors are the best way to get a personalized travel experience.
Flywire, a global payments enablement and software company, surveyed more than 600 luxury travelers in their new report, Luxury Travel's Role in the Industry's Recovery, to uncover the extent to which luxury travelers are helping to lead the industry recovery in the COVID-19 era.
Travelers Plan to Spend Big in 2022
Nearly three-quarters of luxury travelers surveyed will be spending more on vacations in 2022 than they spent pre-pandemic as they look for personalized and COVID-safe accommodations. Remaining at home for an extended period allowed many to not only save funds but also research the places they wanted to visit. Now, with travel restrictions in the U.S. and abroad easing, they are eager to explore—and are willing to pay for it.
Even more: The majority of those surveyed (78 percent) said travel is more important to them now than it was pre-pandemic. This is especially true for travelers ages 18 to 34 and 35 to 54, who are excited to explore after years in lockdown.
Regarding expenditure, Flywire says by next summer, travelers will spend an average of nearly $5,000 per person on each trip. That said, as travelers’ budgets increase, so do their expectations. In addition to unique experiences, travelers are looking to eliminate any hassles from their travel experiences.
High-End Luxury Advisors Are in Demand
Luxury travelers are also looking for assistance from travel advisors, as they factor in health and safety and cancellation policies into their planning. These advisors have deep relationships with global luxury suppliers, such as accommodation providers, tour operators and destination management companies. Flywire’s survey shows that more than half of those surveyed will use an advisor in 2022.
There’s also a renewed desire to work with high-end travel advisors because they specialize in curating once-in-a-lifetime experiences for those seeking all those benefits without any of the hassles. Notably, 74 percent of luxury travelers surveyed say working with skilled advisers is the only way to truly have a luxury travel experience, while 66 percent said they could not imagine traveling without an advisor.
When competing for these lucrative travelers, providers must focus on creating experiences for guests that sets them apart while also keeping COVID-19 safety a priority: 88 percent of travelers surveyed believe travel advisors are more important now thanks to ever-changing travel regulations due to COVID-19. Good to know: The pandemic isn’t the only reason luxury travelers turn to advisors. Other benefits they look for include:
- Ease of payment (87 percent)
- Knowledge of travel restrictions (55 percent)
- Problem-solving capabilities (54 percent)
- Takes care of everything for them (51 percent)
- Provides peace of mind (50 percent)
Relieving Payments Pain Points
When booking vacations, luxury travelers are also looking for easy payment options. Almost nine in ten surveyed (87 percent) say how easy it is to pay for all parts of their trip, such as travel, accommodations, and excursions, at once, is important to them. But when asked how they would prefer to pay for trips, two in five (40 percent) would prefer to pay for each segment of their trip individually, while over one-quarter would prefer to pay for some of the big pieces individually but pay one person for the rest.
Another big concern is security. Sixty-nine percent of luxury travelers surveyed worry about the security of their payments and are looking for providers and advisors that they can trust.
This survey included 648 U.S. adults, aged 18 and older who have a household income of at least $100,000 a year, traveled at least twice during the past 18 months for pleasure, pre-pandemic traveled at least twice a year for pleasure, and spend on average at least $4,000 per person on vacations, including accommodations, travel, meals and activities. This survey was conducted online between October 25 and November 1, 2021.
Source: Flywire
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