Travel companies catering to affluent travelers remain largely optimistic

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Despite ongoing economic uncertainties, there are currently no strong signals of a significant slowdown or recession impacting the high-end travel segment

Mar 24, 2025

Despite initial worries triggered by Delta Air Lines’ February sales dip, fears of a broader slowdown in luxury travel – and its potential economic impact – appear overblown. While corporate and price-sensitive travel bookings have softened, affluent travelers remain undeterred. High-income households, who account for about half of all consumer spending in the U.S., continue to spend confidently on high-end travel experiences, buoyed by rising stock markets, asset appreciation, and stable earnings. The luxury travel sector, far from retreating, is projecting continued growth in 2025 and beyond.

Key takeaways

Luxury travel remains resilient: Despite Delta’s February slowdown, luxury travel bookings are strong. The pullback stemmed from corporate and price-sensitive customers, not affluent travelers.
High earners drive economic growth: Households earning $250,000+ account for ~50% of consumer spending and nearly one-third of GDP, making their spending behavior a critical economic indicator.
Spending confidence remains high: A booming stock market, strong real estate values, and wage growth continue to support wealthy consumers’ travel budgets.
Luxury travel market growth: The sector is projected to grow 5.2% in 2025, reaching nearly $1.8 trillion globally.
Travel companies see strong demand: The Thinking Traveller reports rising average booking values; Hyatt sees no slowdown in its luxury brands. Scott Dunn anticipates a robust 2025 with increased vacation plans. Virtuoso reports major increases in large-ticket bookings.
Ultraluxury segment thrives: High-end travel – private jets, yachts, and luxury villas – continues to attract multigenerational family spenders.
Cautious optimism amid uncertainty: While some companies (e.g., Viking Holdings, Abercrombie & Kent) note booking hesitations due to macroeconomic concerns, overall spending per booking is still rising.
Outlook remains strong: Despite global uncertainty, most luxury travel providers anticipate a strong 2025, with little sign of a meaningful downturn.