Luxury travel means different things to different people. Who hasn’t heard this trope? What’s less ambiguous than its definition, however, is the success of luxury travel.
Luxury travel network Virtuoso has revealed the findings of its 2026 Luxe Report, and the key takeaway is that the luxury sector isn’t just holding steady, it’s thriving – and that seems particularly so in the Australian market. The results of the annual report were even released in Australia before anywhere else in the world for the first time, a significant milestone in itself.
This year’s report drew on insights from a record 2,500 or so Virtuoso travel advisors. But it was the opinions of the roughly 300 Australian and New Zealand advisors that took centre stage as the findings were unveiled in Sydney on Thursday.
So let’s dive in.
More travel, more spend
Crucially, the majority of Aussie and Kiwi advisors said they expected their clients to keep travelling, with just over half (54%) predicting at least a “slight increase” and nearly a quarter (23%) forecasting a “significant increase” in demand.
According to Virtuoso’s Vice President of Global PR Misty Belles, who presented the report’s findings, “those numbers are up quite a bit year-over-year”.
Spending is also set to rise, with nearly two-thirds (63%) expecting to see a “slight increase” in customer spend and another 16% predicting a “significant increase.”
Where’s hot?
For the first time in the two decades since Belles has been involved in the report, Japan takes the number one spot for most popular destination, overtaking Italy for the first time.
“Japan may not be a big surprise to you. I feel like every person I know has either just come back from Japan or they’re on their way to Japan,” she says.
Elsewhere, Portugal entered the global top ten, climbing past Spain for the first time.
Among emerging destinations, Antarctica is a standout for Australian and New Zealand travellers, while emerging destinations such as Malta and India are beginning to gain momentum.
City preferences are shifting too, with Tokyo and Kyoto leading the list and Paris dropping to third, “which has never happened”.
Cruising trends reflect this appetite for exploration. Antarctica, Alaska and top 10 debutant the Arctic rank among the most sought-after regions, joined by the Mediterranean, the Danube and the Greek Isles.
Key traveller types
The Luxe Report also spotlights new and growing traveller segments, such as ‘Wander Women’, solo female travellers – particularly Baby Boomers – who are growing in influence.
According to the findings, two-thirds (68%) of solo Virtuoso travellers are female. Freed from school schedules, they are travelling outside peak times, choosing adventure, wellness and immersive cultural experiences.
For the less independently minded, Virtuoso is seeing escorted tours and cruises “come in really strong”. With guided trips featuring “built-in safety nets”, Belles says these travellers can be as social as they want to be or not.
Main motivations & top trends
When it comes to the reasons why Australian and New Zealanders are travelling, the report reveals the top motivations are to mark a milestone, explore new destinations, spend time with loved ones, rest and relax, and escape bad weather.
And what are the most significant trends that Virtuoso advisors are seeing for 2026? Firstly, expedition cruising. For those who like cruising without the crowds, this is it. Beyond this, it’s multi-generational and immediate family travel, active and adventure trips, and high-end ocean cruising.
Emerging themes
Beyond the top trends, the Luxe Report identifies five major themes shaping Australian and New Zealand luxury travel for 2026.
- Crowd control is the new luxury. Upscale travellers are seeking uncrowded, serene destinations – from Greenland’s fjords and Iceland’s volcanoes to Bhutan’s high-value, low-volume model.
- ‘Main character synergy’ shows film, TV and social media driving trips. From The White Lotus to K-dramas and House of the Dragon, travellers follow stories while discovering local markets, food, arts and culture, turning entertainment into authentic experiences.
- FOMO fast-tracks bookings, but ‘Slow-mo’ is enabling travellers to savour their adventures at a slower pace. Experiences like extended river cruises, smaller safari camps and lingering in South America allow them to explore at leisure.
- Ultra-luxury travel now demands seamless, all-inclusive experiences, from private transfers and resort buyouts to wellness experts and chefs at guests’ disposal. According to the report, nearly half (40%) of advisors are seeing a rise in “exceptionally high-end experiences”.
- A ‘healthy wealthy’ trend blends wellness and adventure, with multi-generational trips promoting mental, physical and social wellbeing.
Australians travel differently
Outside of the Luxe Report, Belles flagged the Aussie edge in luxury travel.
Globally, travellers average 7.8 nights away, but Australians sit at 11.2 nights.
“The rest of the world is very envious about how you get to travel for longer,” Belles said.
Planning windows are also longer. Internationally, people plan about 140 days ahead, while Australians average 156. Bigger, more expensive trips are booked even further in advance.
Double-digit rise
For the Virtuoso network, sales have been “very strong”, said Belles, who is visiting Australia for the first time in six years.
“We’ve seen a 12% year-over-year increase; that’s on top of a 14% increase we saw [in 2024]. So the momentum for luxury travel is strong and it continues,” she explained.
“We do hear that there are certain sectors that may be experiencing a softening of the market. That’s not what we’re seeing.”
Evidence of this are the average room rates that preferred partner hotels can command.
“For the first half of the year, our average daily rates were up over 8% year-over-year,” she says.
“And when you look at where we’re going to finish in December, after the festive holiday period, we’re almost at $2,100 a night for a hotel rate – and that’s US [dollars] and not Australian.” That’s more than AU$3,000 a night – and good reason to feel confident moving forward.
Transacting around US$54 billion a year in travel sales, Virtuoso boasts 20,000 travel advisors across 58 countries, including 1,600 agents in Australia and New Zealand in 65 member agencies.
