High income travellers make up half of all experience spend as wealth gap skyrockets

High income travellers make up half of all experience spend as wealth gap skyrockets
Edited by Travel Weekly


High-income travellers earning AU$223,000 (US $150,000) a year or more are becoming increasingly important to the global tours, activities, and attractions market as the wealth gap continues to grow.

This is based on research from Arival, the global research authority on the travel experiences sector. Arival’s “The Affluent Experiences Traveler” report has been unveiled ahead of the company’s upcoming conference in San Diego. 

The report examines the preferences and behaviors of this high-value traveler segment, which increasingly places experiences first in their travel planning and priorities.

Key findings

  • Affluent travellers account for a disproportionate share of bookings and spending in the experiences sector. While representing only 21 per cent of all travellers, they a third of bookings and 46 per cent of total spending on tours and activities.
  • Young affluent travellers aged 18-44 are especially impactful. They spend 50 pet cent more on activities than other travellers.
  • Experiences play a crucial role in destination selection for the majority of affluent travellers – across age groups.
  • 77 per cent of older affluent travellers and 74 per cent of younger affluent travellers say that available activities and experiences were a very or primary reason for choosing their destination.
  • Affluent travellers are more likely to plan and book experiences in advance – often before booking other elements of their trips – 59 per cent of younger affluent travellers and 27 per cent of older affluent travellers plan and book experiences more than four weeks in advance, compared to 22 per cent of middle-income travellers and 28 per cent of lower-income travellers.
  • Older affluent travellers still like to plan and book flights and lodging in advance – whereas younger affluent travellers leave this until the last minute. Around 70 per cent of older affluent travellers plan and book flights and hotels more than four weeks in advance. In contrast, 70 per cent of younger affluent travellers do this less than a week from the date.
  • Younger affluent travellers (aged 18-44) are particularly engaged in the experiences market. They account for 67 per cent of bookings and 70 per cent of spending among affluent travellers.
  • Sustainability and personal values are key factors in experience selection for affluent travellers – 87 per cent of younger affluent travellers prioritize brands and products that align with their values, compared with 56 per cent in other income groups. As many as 81 per cent of young affluent travellers also say that sustainability influences their experience choices, compared with 44 per cent of other travellers.

“The widening wealth gap has been a societal megatrend for the US, and we’re seeing very clearly how this is shaping the present and future of travel – and the travel experiences sector,” Arival CEO and co-founder, Douglas Quinby, said.

“Creators and sellers of tours, activities and attractions must have a clear strategy to meet the expectations of an increasingly important affluent traveler, who is accounting for a greater share of overall travel and experiences demand,” he added.

“Increasingly these travellers are choosing where to go, and where to stay, based the experiences they wish to pursue. Every travel organization – from accommodations and transportation to destinations and travel sellers of all shapes and sizes – must start thinking experiences first. Their most important customers already are.”

The report also highlights the growing importance of social media and online reviews in the decision-making process for affluent travellers. Younger affluent travellers, in particular, rely heavily on platforms like YouTube, Instagram, and TikTok for research and inspiration.

Email the Travel Weekly team at traveldesk@travelweekly.com.au

Arival luxury

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