Lifestyle The new era of luxury travel

Traveling makes for lifelong memories. A beautiful view on a hike, a charming conversation with a local, a delicious meal. And with the help of a Truist Wealth advisor, you can make these experiences part of your financial planning.

The market for luxury travel is growing. Research from Arival shows that high-end travelers account for a third of all bookings and 46% of all spending on tours and activities^{Disclosure 1} The high-end travel demographic is also getting younger, with 80% of luxury travelers being under the age of 60.^{Disclosure 2}

This growth may give you new opportunities to have unique and exclusive experiences when you travel. There are several niches within the market that cater to luxury travel and are seeing particularly strong growth. Spending on luxury cruises and ship expeditions is expected to grow by an average of 11% per year through 2031.^{Disclosure 3} The global wellness tourism industry is also expected to increase, with a 13% four-year compound yearly growth rate through 2027 to $1.4 trillion. One of the significant trends is that luxury properties are developing specialized wellness programs to target high-spending travelers.^{Disclosure 4}

Travel advisors who specialize in the luxury market, with specific knowledge of more exclusive destinations and properties and a highly personalized service level, can be an excellent way to make the most out of every travel opportunity.

A travel advisor will perform many of the same services as a traditional travel agent in terms of making reservations and putting together itineraries, but they’ll provide extra value before, during, and after the trip. Besides pre-trip planning, an advisor may act as a concierge or troubleshooter during the trip itself, and a post-trip debrief will help the advisor begin drawing up ideas for next time.

Specialized advisors can be researched through services such as Travel Leaders Network and Virtuoso or by personal reference. When interviewing a potential travel advisor for your family, listen not just to what information they are offering but also what kinds of questions they are asking since, like a wealth advisor, a travel advisor should know the client extremely well.

With so many new opportunities for amazing experiences within the luxury travel market, it makes sense to plan for how best to spend your money wisely. Since vacations may be one of your top goals, your Truist Wealth advisor is an important resource. A six-figure annual travel budget may be perfectly appropriate, but it should still be planned for alongside your other goals.

If you’re already retired, a wealth advisor can help ensure the travel bug doesn’t consume an unhealthy portion of your retirement income and stays consistent with priorities such as philanthropic giving and legacy gifts to heirs. If you’re still working, an advisor can similarly help you determine how your travel goals fit your budget, including planning around irregular cash flow if commissions or bonuses make up a large part of your income.

Inflation and its impact on spending can be of particular concern when it comes to luxury travel since prices in the segment tend to rise faster than the overall inflation rate. For example, average daily rates at luxury hotels in 2024 were 70% higher than they were in 2019.^{Disclosure 5} Your wealth advisor can help ensure that even as your trips may increase in cost, they still fit within your overall wealth plan, and you have the opportunity to achieve other critical financial goals.

Since your wealth advisor knows you well, don’t be shy about also talking with them about what specific kinds of trips you and your family might want to take. Often, they may have other clients who have taken similar types of trips. But even more importantly, your travel goals provide your advisor with more insight into your personality and what matters most to you, all of which should be reflected in your wealth plan.

To some extent, luxury travelers are like mass market travelers in that the most popular vacations for both groups involve a beach or sunny weather destination or a “relaxing getaway.” Luxury travelers tend to be more focused, however, on adventurous or specialty vacations, such as safaris, sailing, or adrenaline sports.

But even when destinations or themes are similar, luxury travel is defined not just by the cost of the hotels and restaurants, but by the extent to which the experiences cater to the traveler’s individual tastes, style, and desires.

That might manifest in many ways. Some travelers will seek out highly personalized experiences, such as the opportunity to take a cooking class in a favored cuisine from a skilled chef. Others will prioritize exclusivity of the kind that a chartered yacht trip would offer as compared with a cruise ship. Another luxury traveler might be most interested in a busy but highly curated trip where the focus is on unique activities but with a concierge of some sort handling every detail.

Luxury travel is an escape from the day-to-day, and as the industry has grown, opportunities for unique vacations are nearly unlimited. Including your Truist Wealth advisor in your preparation can help ensure your family’s vacation fits both your dreams and your financial plan.