By Hrishikesh Kadam
From cruising, yachting, and customized private vacations to multigenerational travel, new trends in the luxury tourism industry are emerging from the global shutdown triggered by the COVID-19 crisis. As travel restrictions ease and borders reopen, travel at any level will be more precious and more exotic among people.
Evidently, 2020 has been a challenging year for everyone, and in 2021, travelers are likely to plan future trips as a way to unwind, whether through celebration journeys with families and friends, wellness focused experiences, or culinary explorations. Worldwide, there is a pent-up demand for travel with majority of people missing traveling and tourism perks.
American Express Travel’s Global Travel Trends Report revealed that 76% of surveyed respondents are building their destinations wish list for travel in 2021 even though they might not be able to do so yet. Global luxury tourism market is set to experience a period of continuous growth and unprecedented transformation in the near future, garnering more than US$ 45 billion in annual value by 2027, claims Global Market Insights, Inc.
Abercrombie & Kent USA, LLC, Thomas Cook India Ltd. (TCIL), Lindblad Expeditions, Silversea Cruises, Audley Travel, Scott Dunn Ltd., Classic Journeys, Inspiring Travel Company, Backroads, and G Adventures are among the established names in the luxury tourism business. Providing authentic travel experiences with improved safety and at low cost is an emerging priority among these companies as they anticipate an influx of travelers in 2021 and beyond.
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Cruises, yachts, and small ships to be in demand
Due to an odd belief that people are less likely to contract coronavirus outdoors than indoors, many people are expected to seek vacations where they can enjoy outdoor spaces such as safaris, adventure & sports travel, cruising and yachting. It is estimated that the cruises, yachting and small ships segment of luxury tourism industry will gain enormous traction in the future. A large number of travelers are preferring customized vacations on cruises and yachts due to luxury, privacy, and most importantly, safety.
With the improving COVID-19 situation in many regions and growing number of travelers, numerous cruise lines had begun resuming operations. Silversea Cruises, for example, announced its return to global operations in June 2021. Initial sailings will take travelers to the most sought-after destinations in the Galápagos Archipelago and the Greek Isles. The company also plans to resume operations for cruise sails to Alaska and Iceland sometime in July.
Citing another instance, Princess Cruises disclosed plans to return to service in the U.S. following guidance from the U.S. CDC and collaboration with government officials. Starting between September and November this year, Princess cruise ships will sail from San Francisco, Los Angeles and Ft. Lauderdale to Mexico, Panama Canal, Hawaii, the Caribbean, and the California coast.
Amid concerns regarding safe travel due to COVID-19, many are opting for small ships and yachts for cruising as they are less crowded and ensure better protection. Travel on cruises, small ships, and yachts will certainly witness increased demand in the years to come.
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Emerging trend of solo traveling in Europe
According to Global Market Insights, Inc., Europe captured over 35% share of luxury tourism market during 2020 and will continue to be one of the most favorite tourism destinations among travelers from around the world, as well as across regional countries itself.
Recently in June 2021, the European Union had recommended member states to lift Europe travel bans for all U.S. tourists, vaccinated or not. It is, however, up to the member nations to decide when and how to open borders. Each country has the power to set its own guidelines for travelers. As travel bans lifts, European countries could witness an exponential surge in the number of tourists.
Solo travel, which has been one of the hottest topics in recent years, is rapidly gaining popularity in the European region. Smartphones, travel apps, and Wi-Fi have made navigation easier and staying in touch more accessible. An increase in the options available for solo travelers is being observed, with varied income levels ensuring higher degree of luxury tourism benefits to those who can splurge a bit more.
Travel trends for 2021 show that Europe could be the go-to continent for solo travelers. In 2020, Europe solo luxury tourism industry generated over US$ 2.5 billion. As solo travel becomes increasingly popular, tourism companies are rolling out personalized services and options. Riviera River Cruises, for instance, had announced dedicated departures for solo travelers in August last year to ensure social distancing while sailing European waterways.
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Further trends in luxury tourism market post COVID-19 pandemic
In the post COVID-19 era, the new challenge for the luxury tourism industry is to operate in a safe and socially distanced way. The pandemic has altered people’s perception of luxury tourism with high cleanliness standards, privacy, and personalized experiences being the most desirable amenities. In fact, more than 80% people said they are willing to travel to destinations during the off season when its less crowded, according to America Express Travel .
Working from home has blurred the lines between personal and professional lives and the workcation trend is growing steadily. It has been witnessed that many individuals are temporarily relocating to vacation destinations to work remotely while being on vacation at the same time. Around 54% of respondents agreed that during the pandemic, the flexibility and freedom of working while traveling is more appealing than before.
Growing appeal of workcations, solo travel, and personalized vacations should lead to some exciting new trends in the luxury tourism market. North America and Asia Pacific are also likely to hold a fair share of the market in the next few years. Rise in people’s disposable income, availability of affordable luxury tourism packages, and the effect of more than a year-long lockdown restrictions will be key factors propelling the industry forward.
