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The luxury bubble isn’t popping, but it’s shifting. | Oliver Corrin

  • Oliver Corrin
  • 6 August 2025
  • 2 minute read
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This article was written by a Hotel Marketing Flipboard. Click here to read the original article

image

The luxury bubble isn’t popping, but it’s shifting.

Luxury travel is booming, but not for the reasons we think.

Not because ultra-wealthy guests are suddenly travelling more.
But because aspirational guests, those who don’t normally spend $7,000 a night, have been spending like they do.

And the industry has responded in kind:

• Upscale airlines are adding premium seats.
• Airbnb is pivoting to in-villa masseuses.
• New hotel developments are racing to go five-star-plus.
• Retail brands are rushing into “holiday collaboration” mode to capture the luxury mindset.

But here’s the danger no one wants to say out loud:

We’re building our brands for guests who might not come back.

—

The aspirational traveller isn’t broken. They’re just temporary.

McKinsey calls them the “$100k–$1M net worth” segment.
They account for 35% of global luxury travel spend.

But their loyalty isn’t stable, it’s circumstantial.
They splurge on revenge travel, milestone birthdays, postponed honeymoons.

And when economic fear sets in?
They disappear.

Not because they don’t love you.
But because they can’t afford you.

So what happens when you’ve built your brand on a guest who vanishes when the economy dips?

—

This isn’t a call to lower your standards.
It’s a call to balance your strategy.

TIS 2024: The impact and importance of AI…
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There’s a difference between premium storytelling and premium pricing.
Between being aspirationally magnetic and operationally fragile.

Because if your brand needs an impulsive splurge to fill a suite…
you don’t have a brand, you have a bubble.

—

Some of the most resilient hospitality brands I’ve seen in the past 10 years weren’t the flashiest.

They were the ones that stayed full, quietly, reliably.

The Connaught Bar in London hasn’t reinvented itself 15 times.
It’s not doing “guest shifts” or chasing TikTok virality.

But it delivers with consistency, heart, and ritual.

And it’s packed.

Because the guest who returns week after week,
not just once a year
is the guest who builds your foundation.

—

So what now?

In a climate where everyone’s building sky-high rooms for guests they hope will come

Consider designing a brand for the guests you know will return.

1. Offer luxury through soul, not just spend.
2. Balance pricing power with perceived value.
3. Segment your offerings without diluting your story.
4. Double down on emotional loyalty, not just acquisition.
And remember: The guest who books once is a win.

But the guest who comes back six times is a moat.

—

Final thought:

Luxury isn’t just a peak experience.
It’s the permission to return.

And in an era of economic unpredictability, the most valuable guest…

…might be the one who still books you when the bubble bursts.

#StrategicBranding #LuxuryHospitality #AspirationalTravel #GuestExperience #RevenueStrategy #EmotionalLoyalty #LuxuryIsFeeling

Please click here to access the full original article.

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