The Australian market is becoming increasingly important to Virtuoso, which has now brought its annual Australia and New Zealand-specific Luxe Report to Australia for the second year running.
Yesterday, Misty Belles, Vice President of Global Public Relations at Virtuoso, hosted travel media at Bennelong restaurant in the Sydney Opera House to unpack the trends set to shape luxury travel in 2027.
Despite ongoing geopolitical headwinds, Belles later told a panel that the luxury travel market continues to be relatively insulated – something reflected in Virtuoso’s latest figures.
More than three-quarters of advisors surveyed expect leisure travel demand to increase in 2027, while 70 per cent expect spending per trip to rise. At the same time, value and safety are becoming increasingly important considerations for affluent travellers.
So, from Japan’s continued dominance to Antarctica, “Fancy-flation” and the rise of multigenerational expeditions, here are the top 10 luxury travel trends Australian advisors need to know.
1. Japan continues to dominate
Japan has retained its position as the most requested international destination for a second consecutive year, ahead of Italy, Greece, France and Fiji.
But its dominance extends well beyond the overall ranking. Japan is also the No. 1 destination for solo travel, No. 3 for family travel and No. 5 for cruising, while Tokyo and Kyoto take the top two spots among the most popular cities for 2027.
Whilst Penny Spencer, MD of Spencer Travel, later said that Australia might have peaked when it comes to Japan, globally, Belles said, it is still on the rise.
2. Antarctica is the one to watch
Antarctica continues its reign as the No. 1 destination on the rise and also takes the top spot for both adventure travel and cruising.
Expedition cruising remains the second-biggest overall travel trend for 2027, after spending the previous three years at No. 1.
3. Multigenerational travel takes the top spot
Multigenerational family travel has overtaken expedition cruising to become Virtuoso’s biggest travel trend for 2027.
The two trends are also beginning to merge. Virtuoso has dubbed the phenomenon “Gen-XYZ-peditions” – far-flung adventures shared by multiple generations. At the very top end of the market, this can extend to families reserving an entire ship or lodge and tailoring the experience to their group.
4. ‘Fancy-flation’ is changing where luxury travellers go
Luxury travellers aren’t necessarily cutting their budgets, they’re becoming smarter about where they spend them.
Virtuoso has dubbed the trend “Fancy-flation”, with clients increasingly approaching advisors with a budget and asking where it will buy them the most luxury.
Vietnam, Egypt and Albania are among the beneficiaries, with travellers swapping destinations rather than downgrading their experience – keeping the suite, private guide and hard-to-get restaurant reservation but choosing somewhere their money goes further.
5. Vietnam is surging
Vietnam takes second place among Virtuoso’s destinations on the rise, behind Antarctica, as Asia puts in a particularly strong showing for 2027.
Vietnam also ranks No. 3 for adventure travel and No. 4 for family travel. Sri Lanka is No. 4 among destinations on the rise and No. 2 for adventure, while China makes its debut on the rising destinations list at No. 8.
6. Fiji remains a favourite closer to home
Fiji is the No. 1 destination for both family travel and honeymoons and ranks fifth among the world’s most popular global destinations for 2027.
Bali is another regional favourite, ranking second for family travel and fourth for honeymoons.
7. Solo travel is becoming more purposeful
Solo luxury travel is increasingly being built around what travellers want to achieve rather than simply where they want to go.
Health and wellness has climbed four places to become the leading solo travel experience for 2027, followed by guided tours, expedition cruising and adventure travel or trekking.
Women-only solo travel also debuts at No. 5, cited by 32 per cent of advisors.
8. ‘City-maxxing’ is evolving
After identifying longer, multi-city trips as “city-maxxing”, Virtuoso says luxury travellers are becoming more considered about how individual destinations fit together.
Rather than simply adding stops, itineraries are increasingly designed around contrast – combining “energy and ease, immersion and escape”. Virtuoso points to Sri Lanka followed by the Maldives as one example, allowing travellers to combine cultural discovery with a restorative end to their trip.
9. Air access is helping create the next luxury hotspots
A destination might generate plenty of social media buzz, but Virtuoso says air access can ultimately determine whether travellers actually book it.
Improved connections are making Kenya’s safari offering easier to access, while broader visa-free policies are simplifying travel to China. Investment in luxury hotels, guides and service is also helping previously complicated destinations become easier for advisors to sell.
10. Luxury travellers are spending more – but value still matters
Luxury travellers may be relatively insulated from wider economic pressures, but that doesn’t mean they aren’t thinking about value.
Some 59 per cent of advisors expect spending per trip to increase modestly in 2027, while another 11 per cent expect a significant jump. Just 25 per cent expect spending to remain unchanged.
However, Virtuoso says value and safety are becoming increasingly important factors in deciding both where and how affluent travellers travel.
