According to a new report, wealthy travelers, defined as individuals earning $150,000 or more annually, significantly influence the market for tours, activities, and attractions. This demographic accounts for 50% of the overall expenditure on day tours and contributes over 40% of the total spending on activities and attraction tickets.
The growing disparity in wealth has emerged as a significant societal trend in the United States, profoundly influencing both the current landscape and future trajectory of travel and the experiences sector.
Providers of tours, activities, and attractions must develop a well-defined strategy to cater to the expectations of an increasingly influential affluent demographic, which is commanding a larger portion of the overall demand for travel and experiences. These travelers are progressively making their choices regarding destinations and accommodations based on the experiences they seek.
Consequently, every entity within the travel industry—ranging from lodging and transportation to various destinations and travel vendors—must prioritize experiences in their planning and offerings, as their most vital clientele is already doing so.
Report’s key findings reveal that:
- Wealthy travelers constitute a significant portion of both bookings and expenditures within the experiences sector. Although they make up merely 21% of the overall traveler demographic, they are responsible for one-third of all bookings and 46% of the total spending on tours and activities.
- Young affluent travelers between the ages of 18 and 44 have a significant influence on the travel market, as they allocate 50% more funds towards activities compared to their counterparts.
- For most affluent travelers, regardless of age, experiences are a vital factor in determining their travel destinations. A notable 77% of older affluent travelers and 74% of their younger counterparts indicate that the availability of activities and experiences is a major or primary consideration in their choice of destination.
- Wealthy travelers tend to organize and reserve their experiences ahead of time, often prioritizing these arrangements before finalizing other aspects of their journeys. Notably, 59% of younger affluent travelers and 27% of their older counterparts schedule and secure experiences over four weeks prior to their trips, in comparison to 22% of middle-income travelers and 28% of those from lower-income brackets.
- Older affluent travelers generally prefer to arrange and confirm their flights and accommodations well in advance, while younger affluent travelers tend to postpone these decisions until closer to their departure. Approximately 70% of older affluent travelers make their flight and hotel bookings more than four weeks ahead, whereas 70% of younger affluent travelers do so within a week of their travel date.
- Younger affluent individuals, aged 18 to 44, demonstrate a significant interest in the experiences market, representing 67% of bookings and 70% of expenditures among affluent travelers.
- Sustainability and personal values play a crucial role in the selection of experiences for these travelers. A notable 87% of younger affluent individuals prioritize brands and products that resonate with their values, in contrast to 56% of travelers from other income brackets. Furthermore, 81% of young affluent travelers indicate that sustainability impacts their choices regarding experiences, compared to 44% of travelers from different demographics.
The report also emphasizes the increasing significance of social media and online reviews in the decision-making processes of wealthy travelers. Notably, younger affluent travelers depend extensively on platforms such as YouTube, Instagram, and TikTok for their research and inspiration.
