How affluent travellers choose their destinations

Marriott International surveyed the wealthiest 10% of residents in Australia, Singapore, India, Indonesia, South Korea, and Japan to produce their recent New Luxe Landscapes report. This report examines emerging luxury travel trends in Asia Pacific.

The international hospitality group specifically targets luxury travellers with the brands under its portfolio, which include over 500 hotels, camps, yachts, and so on. Conducting this research is likely to aid those in the luxury travel industry in better catering to the high net worth (HNW) travellers that they serve.

Non-stop growth of luxury travel

The report is especially pertinent as luxury travel is growing in size. The industry has rebounded from pandemic times, and appears to be growing larger. In 2022, the value of the global luxury travel market was estimated at US$1.4 trillion. By 2032, this figure is projected to increase to US$3.3 trillion, an 8.4% rise in a decade. 

The HNW travellers from the APAC region seem to agree with the trend, as more than two thirds of respondents are planning to spend more on luxury travel in the next year, while a third of all respondents are planning to go on seven, or more, holidays this year.

The most popular travel destination for affluent travellers is Australia, with Japan coming in a close second. 46% of HNW travellers have a trip to Australia planned in the next year, while 42% are planning to visit Japan.

Vacation getaway

The popularity of these destinations with those surveyed is largely driven by the intention of HNW travellers.

It appears that most travellers escape overseas for a break from their busy lives, as relaxing beach holidays are the most cited reason for going overseas. Australia is well known for its sandy beaches, and thus likely emerges as a popular destination.

The continuing popularity of beach getaways is part of a larger trend where HNW individuals travel overseas to take a break from their busy lives. This includes escaping from urban environments, with 84% of travellers saying that being immersed in nature is an important motivator. 

The report links this fondness for nature to how Asian cultures have a respect and reverence for the natural environment, due to the spiritual and religious beliefs in many of these countries. 

Personal enrichment

Another way to take a break from the city has become increasingly popular with millennial HNW individuals: wellness retreats. 86% of travellers aged 26-34 cite wellness retreats as a motivating factor to travel this year, as opposed to the average 80% of all HNW travellers.

Wellness retreats combine traditional practices with modern health trends, where travellers seek for physical and mental rejuvenation. Four out of five of travellers even claim that the wellness facilities in a hotel are an important factor in their decision when booking accommodation. 

To some, this might seem puzzling as wellness facilities are available in most countries, so travelling for wellness reasons may seem like an unwise use of money. However, the appeal of wellness retreats in another country lies in the opportunity for these travellers to immerse themselves in picturesque environments and immerse themselves in rich cultural traditions of another country. 

That’s probably the reason why yoga retreats in India, where yoga originated, is so popular.

Region of foodies

However, according to the report, taking a break from one’s busy life is not the primary reason why HNW travellers choose a destination. The real number one reason is food.

88% of affluent travellers from APAC claim that gastronomy is important when planning their holiday, with 40% of people ranking it as very important. In particular, travellers from India, Indonesia, and South Korea are very enthusiastic about food travel, with around half of respondents from these countries rating culinary experiences as very important.

Most of these travellers express a desire to explore the local cuisine of the countries that they are visiting, as opposed to food from their home countries. 

Cultural appreciation

Those surveyed also engage with the local culture beyond just eating their food. 

Around six in ten affluent travellers are keen to immerse themselves into the community of the country they are visiting and interact with the locals. Around half of those surveyed asserted that exploring a night market to try street food and local dishes is an ideal night out.

Another way that these travellers hope to engage with locals is through their shopping. HNW individuals hope to buy unique local products when they travel. Around 75% of travellers place great importance on buying locally-made antiques and vintage products, as well as shopping for luxury fashion, accessories, and homewares to bring back to their home country. 

The appeal of these products being made locally likely stems from the exclusivity of owning such a product, a perceived higher quality, or the cultural authenticity that is associated with such a product. 

For example, a popular souvenir from Kyoto, Japan is the Kyo-sensu, a type of folding fan which originated in the Heian era, around 8th century BCE. These fans have over 80 steps in its production and are made from a special type of bamboo by skilled artisans. Purchasing one of these fans from Japan is a way for travellers to take home a culturally embedded product and demonstrate their own cultural and historical understanding of the places they visit.

Real luxury travel

For HNW travellers, the appeal of local products also comes from the association between craftsmanship and luxury, especially in a world of mass production — 80% of affluent travellers define luxury travel as being surrounded by refined craftsmanship and exquisite design.

Such a perception extends to the cities themselves. 82% of affluent individuals want to see the distinct architectural styles and design highlights of the cities that they travel. Just as many individuals will consider a hotel's design and architecture when booking their stay.

Architecture and design are even considered when these travellers choose restaurants or bars to visit, with 30% being willing to pay more for an immersive and unique design environment.

Since architecture and design are largely influenced by the development and culture of the country it resides in, engaging with local food, products, markets, and architecture are all ways that luxury travellers attempt to immerse themselves in the culture of the place. 

New age luxury travellers

From the trends that they observe, Marriott International identifies three traveller profiles to classify the people they observe.

The first type of traveller profile is the Venture Travelist. These travellers are those who mix business with pleasure, and quite enthusiastically too, with 73% of affluent travellers combining the two. 

These travellers will enjoy their vacations, but also keep an eye out for business opportunities. The Venture Travelist will explore a location, shop for local products and antiques, and attempt to cultivate business relationships with members of the local community.

Local experiences

The local community features more heavily with the second and third type of traveller profile.

The second profile is the Experience Connoisseur, who looks at their leisure travel as an opportunity for their own personal enrichment. The experience of travelling is an investment that gives returns on their mental and physical wellbeing. These individuals hope to deeply explore a destination, but their utmost priority is their own personal enrichment, and thus they actively seek exclusive one-of-a-kind experiences

The last profile, the Timeless Adventurer, looks more at the destination. Like the Experience Connoisseur, they hope to investigate a destination. However, instead of looking at the destination as it can contribute to their own wellbeing, these travellers hope find out just what about the destination country makes it unique and memorable and what factors give it its sense of place. 

These three profiles have considerable overlap, but ultimately point towards HNW travellers desire to immerse themselves in the local culture, albeit in different manners and for different outcomes. It seems that businesses in the luxury travel industry should consider how to appeal to this trend in luxury travelling and offer uniquely local experiences for their international clients.