Premiumization in Travel & Tourism (2024) - Thematic Research

Premiumization in Travel & Tourism (2024) - Thematic Research

Summary

This thematic research report takes an in-depth look at the theme of premiumization and the impact it has on the travel and tourism industry. This report analyzes the players impacted by this theme alongside the contributing trends, negative destination trends, unintended opportunities, and trends that have emerged as a result of premium tourism. It then dives deep into an industry analysis, presenting several real-life case studies looking at how destinations and companies have responded to the impact of this theme on their operations. Recommendations are then offered for the travel sector, alongside a description of companies mentioned throughout. This report focus is on premiuimization within the tourism industry.

Key Highlights

The theme of premiumization, and the upscale and luxury markets, now have the opportunity to thrive in an industry that has had to rapidly change to meet new changes in traveler demands.

The increased need for privacy, a greater focus on health and wellbeing, a desire to tick off ‘bucket list’ experiences, unintentional saving of money, the tendency to take longer trips, the focus on eco-tourism, and an increase in millionaires means the theme of premiumization will continue to grow in importance.

The demand for luxury hotels is increasing, as more people are willing to spend more on premium experiences. This is shown by GlobalData’s Hotels Database. When looking at the US specifically, total hotel revenue for luxury hotels increased by 24% from 2022 to 2023. This is a significantly higher percentage increase than the US budget hotel sub-sector, which experienced a YoY revenue increase of 15%.

Scope

This thematic report provides an overview of the impact premiumization has on the travel sector and seeks to understand some of the contributory factors. The key trends within this theme are split into three categories: consumer trends, enterprise trends, and industry trends. Several case studies are included to analyze the multiple ways countries and companies have responded to the impact of this theme’s growth and what they are doing to grow with this theme.

Reasons to Buy

Understand the Premiumization trends within the travel landscape today and how these will escalate in the near future.

Assess how travel and tourism companies such as tour operators, OTAs and DMOs are utilizing Premiumization to drive revenues.

Acknowledge the potential pitfalls of using Premiumization by understanding the social, cultural, and environmental effects on the destination.

Discover recommendations for businesses involved in Premiumization. GlobalData’s thematic research ecosystem is a single, integrated global research platform that provides an easy-to-use framework for tracking all themes across all companies in all sectors. It has a proven track record of identifying the important themes early, enabling companies to make the right investments ahead of the competition, and secure that all-important competitive advantage.

All across the travel and tourism supply chain, now have an opportunity to capitalize on Premiumization, and there are notable examples of this. Therefore, all should buy this report to fully understand how this theme will continue to be a key theme in the future travel landscape.