Affluent travelers drive nearly half of all spend on experiences
High-net-worth individuals represent one in five travellers but account for 46% of all spend on tours, activities, attractions and other in-destination experiences
A new report from Arival, the global research authority on the travel experiences sector, has revealed that affluent travellers are the driving force behind the tours, activities, and attractions market.
Travellers with an annual income of $150,000 or more generate 50% of total traveller spend on day tours, and more than 40% of all spend on activities and attraction tickets.
The report, titled “The Affluent Experiences Traveller,” has been unveiled ahead of its upcoming conference.
The report uncovers the unique preferences and behaviours of this high-value traveler segment, which is increasingly places experiences first in their travel planning and priorities.
Hotels, destinations, airlines and travel agencies as well as travel experiences companies must pay close attention to this critical and growing segment of traveler population.
The report is part of the 2024 US Experiences Traveller study that surveyed travellers across various income levels to understand their behaviours and preferences when it comes to booking and experiencing tours, activities, and attractions.
It revealed that young affluent travellers aged 18-44 are especially impactful as they spend 50% more on activities than other travellers.
Experiences play a crucial role in destination selection for the majority of affluent travellers, across age groups.
77% of older affluent travellers and 74% of younger affluent travellers say that available activities and experiences were a very or primary reason for choosing their destination.
While affluent travellers are more likely to plan and book experiences in advance, often before booking other elements of their trips, 59% of younger affluent travellers and 27% of older affluent travelers plan and book experiences more than four weeks in advance, compared to 22% of middle-income travellers and 28% of lower-income travelers.
Older affluent travellers still like to plan and book flights and lodging in advance, whereas younger affluent travellers leave this until the last minute.
Around 70% of older affluent travellers plan and book flights and hotels more than four weeks in advance. In contrast, 70% of younger affluent travelers do this less than a week from the date.
Younger affluent travellers (aged 18-44) are particularly engaged in the experiences market.
They account for 67% of bookings and 70% of spending among affluent travellers.
Finally, it found that sustainability and personal values are key factors in experience selection for affluent travellers.
87% of younger affluent travellers prioritise brands and products that align with their values, compared with 56% in other income groups. 81% of young affluent travellers also say that sustainability influences their experience choices, compared with 44% of other travellers.
“The widening wealth gap has been a societal megatrend for the U.S., and we’re seeing very clearly how this is shaping the present and future of travel – and the travel experiences sector,” said Douglas Quinby, CEO and co-founder of Arival.
“Creators and sellers of tours, activities and attractions must have a clear strategy to meet the expectations of an increasingly important affluent traveller, who is accounting for a greater share of overall travel and experiences demand,” he said.
“Increasingly these travellers are choosing where to go, and where to stay, based the experiences they wish to pursue.
“Every travel organization – from accommodations and transportation to destinations and travel sellers of all shapes and sizes – must start thinking experiences first. Their most important customers already are.”
The report also highlights the growing importance of social media and online reviews in the decision-making process for affluent travellers.
Younger affluent travellers, in particular, rely heavily on platforms like YouTube, Instagram, and TikTok for research and inspiration.
