Intraregional luxury stays gaining steam: report

July 2, 2024

The hospitality group's analysis hones in on the changing face of luxury travel among Asia-Pacific's HNWIs. Image credit: Marriott International

By Amirah Keaton

According to a new release from the Luxury Group by Marriott International, 68 percent of affluent travelers in Australia, Singapore, India, Indonesia, South Korea and Japan are planning to spend more on leisure stays over the next 12 months.

The company's New Luxe Landscapes report explores the changing luxury travel expectations of high-net-worthers (HNW) based in these markets. The results of its grounding survey suggest that 74 percent are preparing for intraregional vacations within Asia-Pacific and will prioritize intergenerational approaches to and interdisciplinary activities on holiday for the foreseeable future.

“Our New Luxe Landscapes Report provides deeper behavioral insights and motivations into elite travelers from Asia and the Pacific,” said Oriol Montal, managing director of luxury, Asia Pacific (excluding China), at Marriott International, in a statement.

“Whether it's discovering new culinary experiences, traveling with their family or friends, or looking to forge connections with the local community, our research has identified new traveler archetypes, and provides Marriott International with new understandings in catering to this discerning traveler segment.”

For the report, Marriott International Luxury Group commissioned research conducted from April 18, 2024, to May 13, 2024, with 1,200 total frequent international travelers who primarily do so for leisure. Marriott’s study targeted the top 10 percent of residents by net worth in Australia, Singapore, India, Indonesia, South Korea and Japan, securing 200 respondents from each market.

Global forces

Affluent travelers are a major force in the global market, accounting for approximately 36 percent of total spending and nearly 70 percent of luxury travel expenditure.

India is currently the most active and engaged travel market. Travel and tourism are reaching unprecedented heights here, and in 2024, more of the nation's wealthy residents are expected to travel internationally than ever before.

Nine of every 10 respondents from the country are about to increase their leisure travel spending this year.

Overall, seven out of 10 respondents are planning a holiday within Asia-Pacific, while Australia is the top destination of choice among these HNW clients. Nearly half of all are looking to land in the Down Under soon, while 69 percent of this cohort’s Indian travelers are planning a trip to Australia.

The report asserts that Japan and, on a larger scale, Europe remain popular as well, with 42 percent and 52 percent of respondents anticipating a leisure trip to the city and continent within the next 12 months, respectively.

Directly correlated with a growing population — Asia is projected to contain nearly one in every three HNWIs globally by 2027, up from 15 percent in 2004 — celebratory stints abroad with families or groups of friends are also booming.

HNWIs from Asia Pacific exhibit a strong preference for group travel. Image credit: Marriott International

These multigenerational vacations tend to mark milestones. The three leading types are family holidays, breaks taken with groups of friends and trips planned around a major celebration, including weddings, birthdays or religious holidays.

Furthermore, only one in five affluent travelers from APAC intend to take a solo trip in the next 12 months. A strong preference for group travel dictates these HNWIs' itineraries.

As explained in a statement, “For many, the kinship and connection within a group enhances the richness of the travel experience, with over 70 percent choosing to travel with family or friends.”

Affluent travelers from Australia, Singapore, South Korea, Japan, Indonesia and India are increasingly opting for longer holidays. Enabled by higher annual paid leave balances on average, this trend reflects a desire to fully immerse themselves in their travel experiences.

The report lists that, entitled to a minimum of four weeks annual leave, Australians HNWIs are taking the longest breaks, with 73 percent planning a minimum two-week getaway and 33 percent taking over three weeks away.

Travel drivers
One of the New Luxe Landscapes report's five key trends is the desire for top-notch culinary experiences, which is driving the future of luxury travel among well-resourced tourists in APAC.

It is at the forefront of vacation decisions, with 81 percent of respondents admitting to selecting hotels based on the availability of fine dining and 83 percent pursuing certain destinations for the promise of a visit to an award-winning restaurant.

The report explores the changing luxury travel expectations of high-net-worthers based across APAC. Image credit: Marriott International

An overwhelming majority, or 88 percent, of survey respondents, indicated that gastronomy is either “important” or “very important” when choosing travel destinations this year.

Indian HNWIs care most about enjoying new and gourmet foods on holiday between now and spring 2025, followed by Indonesians and South Koreans.

Health and wellness businesses (see story) continue to fuel the luxury travel sector as well.

Of all Asia Pacific populations, high-net-worth millennials are especially prone to booking these restorative sessions. In fact, 86 percent of travelers aged 26-34 say a wellness retreat is a motivating factor for traveling this year, compared to 80 percent of all respondents.

Besides Michelin-starred centers and personal health programs, immersive entertainment options are drawing this group in. When it comes to high-profile sporting events or concerts, 72 percent will travel to attend.

For Indian travelers, 88 percent of whom are planning their travel around a cultural event while the chance to attend a high-profile concert or sporting event is a major incentive for 87 percent, the more exclusive the affair, the better.

Many are willing to pay more for VIP access than the average adventurer. Travelers taking advantage of hospitality’s best may find their options multiplying by the season during what has been a busy calendar year for event programming (see story).

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