Lake Leukulse, Alberta -Luxury Travel Market is still flying high, but the price reduction of luxury hotels and cruises may be on the way, says one expert.
“I don’t want to be an upper -level luxury hotel now,” said the CLAYTON REID, a former CEO of the travel and tourist marketing agency MMGY, stated in a keynote speech on January 23 at the annual SmartFlyer Core Conference. I did it. “I think the price must be a little lower.”
Lead has sent his remarks to the audiences of about 160 SmartFlyer advisors in Fairmont Chateau Lake Louise. Coo Erina Pindar told the audience a while ago that the luxurious host agency enjoyed a 15 % increase in 2024. According to the SmartFlyer analysis of data available in Travel Weekly Power List, last year the average SMARTFLYER advisor sold $ 2.5 million and the average of twice the average of similar agencies.
According to the hotel data provider Costar, the expensive hotel fee in 2024 has increased 1 % since 2023 and reached $ 388 per night. However, the rate has increased by 31 % since 2019.
The rapid increase from the time before Cobid has rapidly increased the number of hotels that charge more than $ 1,000 per night. Last fall’s analysis revealed that Costar had risen about 80 from 22 US hotels a year, over $ 1,000 a year, an average of $ 1,000 or more. The company observed similar trends in Italy and France. Also, Costar data omits many small luxury hotels, so the true number may be higher.
Lead said that the interest rate of extremely high hints in the market did not think that dip was destined. He quoted Sheldon Sharie in Denari National Park as an example. This is a five -room real estate that requires a helicopter at a time, and requires at least three nights for $ 96,000.
Such exclusive experiences support very wealthy clients who are likely to have cash crunch. However, the lead believes that many customers of large luxury brands such as Four season and Ritz-Carlton have reached the point that they have to dial.
“I think I have a lot of ammunition, so I think I pay what I need to pay to go to the place I like,” he said. “And I claim that middle -class people have run out of ammunition.”
According to REID, Scrucity promotes some continuous demands of super luxurious properties such as SHELDON CHALET and the most exclusive yacht and cruising options. However, he expects price compression not only for luxury hotels, but also on luxury cruises and tours.
SMARTFLYER CORE CONFERENCE travel advisor and supplier representative. Photo Credit: Robert Silk
SmartFlyer’s outlook is very good
One sign of a narrowing of disposable income is more than doubled between the fall of 2021 and the fall of 2024, and is a credit card delinquent fee that is not seen since 2011. On the other hand, US credit card debt is a record high.
However, when a gorgeous contraction comes, it has not yet reflected SMARTFLYER’s 2025 business.
“It still looks really healthy,” Pinder said.
MMGY’s Executive Chairman Clayton lead (left) together with SMARTFLYER’s founder Michael Holtz at SmartFlyer Core Conference. Photo Credit: Robert Silk
SmartFlyer Advisors provided a similar evaluation.
Florida -based adviser Michel Jackson said that 2025 was formed to grow. She said that the price of a luxury hotel might be stable, but did not expect a dramatic decrease in indoor rates.
Costar prediction is also quite bullish. The company predicts that REVPAR, a luxury hotel in the United States, will rise by 2.9 % this year and will increase by more than 2 % in the next two years.
However, the SMARTFLYER founder and CEO Michael Holtz agree to the REID papers, stating that $ 1,000 per $ 1,000 in New York is rare.
“Now you can’t find a good hotel with less than $ 1,000,” he said. “We sometimes look at the price on the peninsula for $ 1,800, and some people say,” What you know, I’m not in New York, I’m spending $ 1,800 per night. ” I think I’m going to do it. M intends to go somewhere. “
However, Holtz stated that such emotions could benefit the SmartFlyer network because the client is looking for the added value of the hotel and the expertise that can be provided by the advisor.
Pinder said that dynamics after more basic pandemics will continue to support luxurious travel demand.
“I realized that the trip was the need for our lives, whatever the rehabilitation ven that people went, and that it was a tool to learn more about themselves.”
