In Europe, Germany contributes more than 5.5 million luxury trips annually, with an average spend of 8,800 euros per trip. German tourists tend to opt for destinations in Europe and Asia, seeking quality, sustainability and authenticity in their experiences. They value attention to detail and seek to combine luxury with culture and nature.
The rise of luxury tourism is attributed, in part, to the sustained growth in global wealth, especially among high net worth individuals. By 2030, the number of millionaires is expected to continue to rise, further driving demand for luxury tourism products and services.
Moreover, this type of tourism has transcended traditional elites, attracting travellers who are looking for special experiences and are willing to invest in them, even if only on an occasional basis.
In recent years, luxury tourism has evolved significantly. Travellers are no longer satisfied with just staying in five-star hotels or flying first class; they are now looking for unique, personalised experiences that allow them to connect more deeply with destinations.
Activities such as private tours, exclusive dinners with renowned chefs, after-hours visits to heritage sites and personalised concierge services are highly valued.
Emerging destinations such as the United Arab Emirates, Thailand and Greece have capitalised on this growth by investing in high-end infrastructure. These regions offer not only luxury services, but also security and appeal to high net worth tourists.
For example, Dubai has established itself as a leading luxury tourism destination thanks to its exclusive hotel facilities, luxury shopping malls and unique experiences such as desert safaris or high-end international events.
Sustainability also plays a crucial role in today's luxury tourism. Travellers are increasingly aware of the environmental impact of their travel and are looking for options that are sustainable without sacrificing comfort and exclusivity. Many destinations are investing in the development of green hotels, eco-friendly activities and conservation programmes that appeal to this type of tourist.
Globally, luxury spending has shown remarkable stability, driven largely by consumers' appetite for premium experiences. However, in the last two years, 50 million consumers have either opted out of the luxury goods category or have been forced to do so. This is an important signal to brands that it is time to readjust their value propositions to win back customers, especially younger ones.
In terms of luxury categories, experiences continue to maintain traction as consumers shift spending towards travel and social events, favouring personalisation and wellness over tangible goods. At the same time, yachts, cars and jets are attracting strong interest from high-net-worth customers.
Beauty products, especially fragrances, continue to attract sales as consumers gravitate towards ‘little treats’. Eyewear is also experiencing positive momentum, with people attracted to more creativity from high-end speciality brands and brands.
Jewellery remains strong, especially costume jewellery, due to positive performance in the US market. Meanwhile, watches, leather goods and shoes have experienced a slowdown as consumers reduce their purchases and become increasingly selective, although small leather accessories and starter items continue to appeal to Generation Z.
