Managing director of Exotic Destinations for two decades, Ranjit Mahto (pictured) says the current climate is not diverting luxury travellers away from destinations, they are just doing it differently. Cancellations are minimal and customers are either rescheduling or changing hubs.
How would you describe the state of the luxury and experiential travel market right now, and how has demand shifted compared with this time last year?
The luxury and experiential travel market is remarkably resilient and to be honest we have seen an increase in business. In particular, this year has been a shift away from Europe and looking at more exotic countries, such as Morocco, Egypt, Jordan and Oman. Australian travellers who are not only maintaining their travel frequency but actively reviewing the quality of their experiences. Compared to this time last year, we’re noticing a clear shift away from ‘ticking the box’ travel toward deeply immersive, highly curated journeys. Clients are spending more per holiday, travelling for longer, and placing greater emphasis on exclusivity and authenticity.
There’s also a noticeable rise in multigenerational travel, families booking once-in-a-lifetime experiences together, often for milestone occasions. The frantic boom we saw right after the pandemic has turned into something more thoughtful and deliberate, which is exactly where we want our luxury segment to be positioned right now.
The only real slow down we have seen lately, has been a reaction to current global events. That said, Australians are a hardy bunch; they’ve stayed adaptable and quick on their feet rather than just giving up and cancelling. Most are either waiting a bit to see how things play out or simply finding different airlines to get where they want to go.
To what extent is the ongoing Middle East conflict impacting Australian outbound travel, particularly for travellers heading to Europe via Gulf carriers and hubs?
This is a daily question asked from our travel advisors, especially to our Morocco, Egypt, Jordan, Oman and Turkey destinations. If only we had a crystal ball? To be honest, we have been surprised by how people are responding. There is a real sense of determination, people don’t want to cancel their lives just because of what is happening in the world. As you are aware a huge number of travellers fly with Gulf carriers, the current situation has opened doors for other airlines, such as Turkey Airlines, Malaysian and even China Eastern. While the situation is fluid, we manage each day as it comes and leave it up the customer to make the right decision for themselves.
We don’t expect to see people completely changing their routes unless the conflict gets much worse or starts affecting the major airport hubs directly. We’ve actually seen more interest lately in the Indian Subcontinent, specifically India and Sri Lanka.
Are you seeing travellers cancel, postpone or reroute holidays because of geopolitical uncertainty, and which destinations are currently benefiting from those shifts?
Interestingly, cancellations have been minimal and customers preference is either rescheduling for 2027 or changing to one of our other hubs, ie Indian Subcontinent such as India, Sri Lanka, Bhutan and Nepal. Our clients still want to travel. They are simply being more thoughtful about timing and routing. You have to remember, they already lost years to COVID and they are not willing to let another opportunity slip away. In terms of destinations benefiting from the current geopolitical climate, for us it has been Southeast Asia and Indian subcontinent, particularly Bhutan, the Maldives, India, Sri Lanka, and Nepal. The most surprising increase has been to Turkey, as clientele need to visit Europe for family they are having to choose alternate airlines. Turkish Airlines is one of the choices, so people are making the choices to spend 3 to 4 days in Istanbul as a stopover, whereas before it was Dubai.
What are the biggest concerns travel advisors are raising at the moment, and how are you supporting agents in navigating client confidence, disruptions and changing travel advice?
I would not call it a “concern”, but we definitely getting more questions about flexibility and what actually happens if we cancel. They are checking the cancellation policies more carefully than what they use to, and they want to know exactly which travel insurance providers will actually have their back. The most obvious one we hear about is the disruptions to airlines.
To assist our clients, they have direct access to our dedicated operations team who can assist with real time itinerary adjustments when needed, which is occurring more often with flight changes. Because of our relationships with our suppliers, hotels, ground handlers and local guides, we can offer the kind of flexibility that gives people real peace of mind.
Have you noticed any emerging trends among high-end travellers in 2026, whether that’s around spending habits, booking windows, wellness, sustainability or demand for more personalised experiences?
We have seen very clearly some emerging trends taking shape in 2026. Firstly, wellness continues to be the main focus, with more focus on really resetting the mind and body. We are seeing a lot of interest in Ayurvedic retreats in Sri Lanka and restoration programs in India. Secondly, the demand for genuine personalisation has intensified, clients are having conversations with us already deeply informed, and they want experiences that feel like they were designed specifically for them. Interestingly, the whole of family experiencing a holiday together. With families living globally, it is about picking a destination and that will suit everyone, ranging from ages two to 70.
We’ve also seen the market split in two. Some people are booking 12 to 18 months ahead just to make sure they get the specific cruise cabin or hotel suite they want, while others are making high priced decisions at the very last minute and expecting us to make it happen seamlessly. Both styles require a lot of work behind the scenes, and we have adjusted accordingly to fulfil these requests.
Looking ahead to the second half of the year, are you optimistic about the outlook for the travel industry, and what do you think will shape demand moving forward?
We are genuinely optimistic about what is coming, though at the same times keeping our eyes open for changes to the goal post. The travel industry is not an industry that is necessarily secure, we live in a world where natural disasters, political outcomes and war, are forever changing the travel landscape. We are an industry that is used to being adaptable, agile, resourceful and most importantly, resilient. Fundamentally, the luxury travel market remains strong. We honestly believe Australians simply have an appetite for seeing the world. We are seeing more people entering the luxury space for the first time, plus a large group of seasoned travellers who want to push the boundaries of what a holiday means to them.
For the second half of 2026, we are anticipating strong demand for Turkey, with a continued interest in India and Sri Lanka for people who want a deeper, slower experience. We are also seeing a spike in Maldives bookings. The cost of living is definitely a real pressure for people, but it tends to hit the middle market much harder than the premium end. If anything, when there is periods of uncertainty, it reinforces the value that specialist operators such as us, can provide the expertise, the flexibility, and genuinely care about our clients.
What role does technology play in enhancing or potentially detracting from the luxury travel experience, and how is Exotic Destinations responding to the rise of AI-driven travel planning?
In our experience, technology is a powerful enabler when it truly helps the traveller, but it can just as easily detract from the holiday when not used properly. We are all about embracing technology where it adds genuine value, such as optimising logistics, streamlining communication, and providing clients with real time support during their holiday. However, we firmly believe that human expertise and authentic relationships remain irreplaceable in the luxury travel space.
While AI planning tools are becoming more common offering instant, generic itineraries, they cannot replicate the insight that comes from an experienced advisor such as exotic destinations. These AI tools are unable to tell you what it’s like to stay in a specific room at a specific hotel. They don’t know which national park will best suit your interests, which trains are not currently operating due to a cyclone, they don’t understand the small seasonal changes on the ground, and they certainly can’t help you navigate a tricky situation using a personal network of local contacts.
AI will undoubtedly continue to shape the broader travel industry, but the people who come to us are looking for what technology cannot provide, a trip that is deeply personal, crafted by experts, and based on a real relationship.
