Are you selling luxury travel? If not, it's a good time to start incorporating it into your business mix.
According to GlobalData, the luxury travel market will likely grow this year following consumer travel trends that have developed over the course of the pandemic.
"With travelers determined to make up for lost time, 2022 could see an increase in holiday budgets for luxury travelers, with an uptick in demand for once-in-a-lifetime adventures," Hannah Free, a travel and tourism analyst at GlobalData, said in a statement.
In fact, a GlobalData poll asking about respondents' budgets for future trips found that more than a quarter of respondents said their budgets were "a lot higher than pre-Covid-19" (16%) or "slightly higher than pre-Covid-19" (12%).
"Luxury," of course, means different things to different people. But in many cases, it does mean products that cut higher commission checks for travel advisors.
"While Covid-19 has changed many aspects of luxury travel, there are still several defining features which sets the sector apart from mass-market tourism," Free said. "This includes hyper-personalization, exclusivity, unique experiences, intuitive service and the ever-important human-touch element."
GlobalData found that many consumers are likely to seek out travel experiences "that are more immersive and more exceptional than in previous years."
Advisors selling luxury products have historically been found to be higher earners than their peers. Upselling in particular has proven to be an effective method of moving clients up into higher-end product classes.
And in some cases, clients got used to luxury products during the pandemic -- like flying private -- and they don't want to give them up now that they've experienced them.
Even if budgets aren't quite as high right now, they're still finding a way, according to Angie Licea, president of Global Travel Collection.
For example, she said, "If there's four families going together on a trip, maybe taking a private jet is equal or less than what you're paying on commercial."
Licea said private travel remains a popular trend, even though many thought its popularity would wane once the pandemic began shifting to a more endemic state.
Whether your clients are new to luxury or private travel is old hat, it's the perfect time for advisors to capitalize on the trend.