The evolution of luxury from the opulent and material-based to experiences has not only redefined luxury travel, it has created an ecosystem worth $1.54 trillion a year - comparable to the size of one of the world's top 15 economies.
That's the conclusion of a new report prepared for International Luxury Travel Market (ILTM) by Barton consulting and WealthX.
The report claims to be the first to measure what it calls the "Global Luxury Travel Ecosystem," or the collection of experiences related to travel, such as food and drink, cultural activities, wellness, sporting events, performing arts and outdoor pursuits.
And its authors say it underscores the need for travel advisors to expand their services beyond the traditional accommodations and flight bookings.
"The reason why this ecosystem is so important to the luxury travel industry is that more and more of these wealthy individuals are seeking curated travel adventures, tailored by advisors who know them well, know what they care about and are passionate for," the report says.
"Increasingly, they are needing travel designers and those in positions of influence in destinations to open their eyes to the full potential of these places. They seek variety and authenticity, and more and more of them are seeing a luxury resort as a springboard. Instead of identifying a 'luxury hotel' as an end in itself, they are using it as a gateway to experiences that, until now, many travel advisors may not have considered part of their role."
The $1.54 trillion is exclusive of lodging and airfare, and the report doesn't detail which experiences may or may not be commissionable. The largest spend is on food and drink, but other more potentially commissionable services, such as cultural activities and wellness, also represent a sizeable portion.
At the same time, the report underscores how much the wealthy contribute to the traditional travel economy. According to Wealth-X, 22.8 million people in the world have a net worth of more than $1 million.
"Travel is one of the most important sectors of spend for the '$1m plus club,'" the report says, noting that high net worth individuals spend on average around $30,000 per year on travel, primarily in the luxury segment. Of the $1.41 trillion spent annually on lodging and air travel globally, about 36% comes from that sector.