Demand for premium experiences continues to lead the way in the travel recovery, with luxury network Virtuoso reporting a 91 per cent lift in overall bookings versus 2019 leading into 2020 and 62 per cent higher sales than in 2022.
Despite Tourism economics not predicting global travel and tourism’s full recovery until the second quarter of 2024, Virtuoso sales indicate the demand for premium travel and luxury experiences is still leading the way.
Most notably, these phenomenal results have all been achieved by travel advisors, with Virtuoso stating that normalised annual sales have historically been US$28-$32 billion.
Virtuoso Executive Vice President David Kolner presented the network’s new normal insights before an audience of 385 of the industry’s top travel advisors from 35 countries at the company’s 2023 Symposium in Montréal, Québec.
According to the latest Virtuoso sales data, the network’s preferred hotels are also experiencing extremely high demand, with bookings 193 per cent higher than in 2019 and 77 per cent over 2022.
Hotel average daily rates (ADRs) continue to soar, as Northern Hemisphere summer 2023 rates average an eye-watering for some US$1,700 per night (AU$2,553), 16 per cent higher than in 2022 and 69 per cent more than in 2019.
Meanwhile, domestic ADR growth for U.S. travellers is slowing slightly in 2023, up only six per cent on average from the same months in 2022; however, ADRs for 2023 summer travel (June through August) are pacing 12-25 per cent ahead of 2022.
Kolner also reported that booking windows have also tightened up considerably to 64 days in advance, as opposed to 85 days in 2019 and 109 days at the beginning of 2021.
Cruise continues to boom, especially river cruising
Cruising is also looking very strong, the network reported, with total Virtuoso bookings up 55 per cent compared to 2019.
By sector, however, mass market cruising sits at 30 per cent higher, while premium is up 61 per cent, luxury is up 79 per cent, expedition is 83 per cent higher, and river cruising is up a whopping 128 per cent.
Kolner also reported that another source of optimism for Virtuoso and its network was that data showing its target market of high-value travellers – HNW and UHNW individuals – is expected to grow by 34 per cent, exceeding 62 million worldwide over the next five years (*source: Credit Suisse Global Wealth Report).
This year’s Virtuoso’s annual Symposium took place from May 17-21 in Montreal and featured a thought-provoking General Session, both formal and informal networking events, as well as ideation and breakout discussions.
Recently, the newest offering of independent franchise and mobile travel agent network itravel, LUXE by itravel, officially launched as a Virtuoso Travel member in Australia with an initial group of eight luxury travel advisors who the network says will help shape the new division and pave the way for other agents.
Booking analysis is based on transactional data sourced from Virtuoso’s travel agency members. For more information about Virtuoso, visit www.virtuoso.com.
