Brands urged to tap into ‘huge potential’ of ‘aspiring’ luxury travellers

A growing demographic of lower-earning, younger clients has “huge potential” for the luxury travel sector, according to Walpole chief executive Helen Brocklebank.

Speaking at Aspire’s annual Leaders of Luxury conference, Brocklebank cited a recent McKinsey study which revealed that 35% of consumers in the luxury travel market have a net worth of between $100,000 and $1 million.

The study indicated that the global spend of these ‘aspiring’ luxury travellers currently amounts to $84 billion, with a predicted increase of 5% to reach $107 billion by 2028.

“A lot of these are younger customers who are trying luxury and getting excited about it which offers huge potential to take them on that long-term journey and make them loyal clients,” Brocklebank said.

However, she was clear it was currently the “top end of the customer base driving the growth” of the sector.

According to the McKinsey study, the current spend of high-net-worth and ultra-high-net-worth individuals is $155 billion,which is expected to increase to $286 billion by 2028.

Brocklebank said: “Our findings suggest that the strategy in the market should be ‘go high or go home’.

“Elevate your brand and play at the top of the market and the effect will trickle down to attract new customers.”

Regarding the current state of the luxury sector, she added: “It’s an hourglass of a market whereby it’s great at the top and interesting at the bottom but there is very little in between so there’s no room for middle ground.”

To be successful and attract the right clients, brands must focus on “creativity, brand desirability and exceptional service”,she added.