Skift Take
Luxury travel is evolving beyond traditional splurges with adventure and experiences driving the trend.
Luxury travel is no longer confined to high-end shopping sprees, spa days, lavish dining, and multiple opportunities to splurge.
High-income households â those earning more than $150,000 â are now opting for adventure and experiences.
And what this group wants is important: They contribute about 36% of global travel spending.
The shift is evident in recent research by Arival, which found that affluent travelers generate nearly half (46%) of all spending on experiences, including tours, activities, and attractions.
The Adventure Seeking Traveler
Arivalâs study showed that 59% of American travelers participated in outdoor adventure activities during trips taken in 2023. Luxury adventure travel blends activities with high-quality accommodation and the comfort of lavish amenities and services.
Skift Researchâs Luxury Traveler survey last fall showed that 63% of luxury travelers said they are likely to seek out adventurous activities to enhance their luxury travel experience.
Nature, adventure, and active travel experiences are projected to become a $1 to $1.3 trillion market by 2025. Skift Researchâs U.S. Travel Trends survey for the first quarter of 2024 shows that a majority of travelers are willing to spend more on adventure travel for a more luxurious experience.
This trend is more pronounced among younger generations, those aged 18-44, who account for 67% of bookings and 70% of spending among affluent travelers. Skiftâs Gen Z and Millennial survey shows that younger adventure travelers are motivated by nature and community.
Earlier this year, Pelorus, a luxury tour operator of extreme experiences with an average price tag of $140,000, shared with Skift that Generation Alpha (children born after 2010) greatly influences planning these kinds of trips. The company saw 12-year-olds actively contributing to activity recommendations based on their interests, what they learn at school, online research, or nature-based documentaries.
According to Knight Frankâs Wealth Report 2024, the global population of high-net-worth individuals is expected to grow by 28% between 2023 and 2028.
