Luxury hotels in central locations are less and less under demand for regular visitors or tourists.
Travelers are getting more price-conscious. After COVID-19 the boom was to get out. In the second year after COVID travel is still under demand, but spending the same or more amount of money is no longer an option for many travelers.
The money charged for a luxury hotel room in 2019 often gets a consumer only a room in a lower rates property.
Some consumers will still book the luxury hotel they had in 2019 but cut a day or two.
Other consumers may adjust an oceanfront location such as a beach holiday in Florida into a stay in Orlando at Disneyland.
Other travelers are getting curious about new trendy destination markets, such as Saudi Arabia for example.
Many countries where climate change is a big subject, such as Germany replace a holiday in the Mediterranean with a domestic beach vacation, especially at times when hot weather is not only in the “South” anymore.
It’s a fluent situation. Destinations should understand their niche and adjust accordingly.