The global luxury travel sector is showing exceptional resilience and growth potential, buoyed by shifting consumer priorities, demographic changes, and unprecedented wealth transfer, according to key insights from this year’s ILTM Cannes.
The trends hold strong implications for New Zealand’s luxury travellers, a market increasingly driven by experience over material indulgence. Despite geopolitical and economic challenges, Bloomberg Wealth’s Merryn Somerset Webb highlighted a significant tailwind: the largest wealth transfer in history, with baby boomers passing down $72 trillion to younger generations. This new wealth aligns with millennial and Gen Z preferences for money-can’t-buy experiences over traditional luxury goods, a trend that luxury brands are now actively capitalising on.
Luxury hotels are reshaping their offerings to meet the demands of this emerging market. Mandarin Oriental is targeting a segment it calls the “Trust Fund Young-Gen,” while Marriott International reports that millennials and Gen Zers already account for 45% of luxury sales, a figure expected to climb to 80% by 2030. Responding to this shift, Marriott is increasing focus on adventure lodges and tented camps, particularly in Africa, as younger travellers show heightened interest in outdoor and experiential travel.
Additionally, luxury collaborations are proving successful in capturing this demographic, with initiatives like complimentary helicopter transfers and exclusive shopping partnerships adding extra appeal. Notably, aspiring luxury travellers—many under 40 with net worths under $1 million—are now prioritising upscale travel, spending like millionaires despite not yet owning homes. The sector’s growth momentum is clear. Virtuoso CEO Matthew Upchurch reported a 14% increase in annual sales to $35 billion, with bookings for ultra-luxury trips costing $50,000 or more up 42%. Meanwhile, Leading Hotels of the World has seen 45 consecutive months of growth, with 2025 bookings already tracking 15% ahead of 2024 figures.
The message for New Zealand’s luxury travel market is clear: the demand for transformative, high-value experiences is rising. As younger travellers increasingly prioritise authentic adventures, exclusive perks, and sustainable luxury, travel providers must adapt to capture this booming segment. With a record 10,000 attendees at ILTM Cannes, the luxury travel sector’s growth shows no signs of slowing. As Upchurch noted, “Every major disruption seems to make travel stronger,” underscoring the enduring value of travel for today’s discerning global audience.