Half a Billion Ultra Rich Make for Luxury Tourism Treasure

by: Mario Masciullo – eTN Italy |

The International Luxury Travel Market (ILTM), an event entirely dedicated to the luxury segment, was held in Cannes and attended by thousands of highly specialized operators in the sector.

Today, luxury means the ability to combine an exclusive stay with unique cultural attractions, gastronomic experiences in the name of typicality, or more simply, glamping breaks and unprecedented excursions into nature.

This segment, according to data from Bank of Italy and ENIT (Agenzia nazionale del turismo – The Italian Government Tourist Board), currently represents 3% of the Italian GDP and is one of the few areas where investing means a return on revenues which also involves related industries.

Luxury tourists can generate business opportunities alone – 15% of the total turnover of the hotel sector and 25% of total tourist expenditure (direct and indirect).

In 2022, the first year with at least 10 months at pre-COVID operating levels, high-end international tourists – mainly Northern European and American – according to Bank of Italy data, spent around 24 billion euros in Italy, broken down into 7 billion euros for accommodation (almost always luxury hotels, private villas, but also historic homes); 3 billion euros for catering; and 14 billion euros for visits, tours, excursions, and shopping.

Among the regions that benefit most from the attendance of high-end tourists, there is Lombardy with its lakes, Milan for fashion, the Piedmont for wine tastings, and Lazio, Tuscany, and the Veneto of art.

Regarding booking methods in the luxury segment, direct contact with the accommodation facility is the most widespread (48%), followed by OTAs (29%) and traditional travel agencies (23%).

France stands out among the markets showing a rapid recovery in luxury travel. In the first 6 months of last year, high-spending French tourists recorded a total tourist expenditure in Italy of over 1.6 billion euros, equal to a +180% compared to the 2021 quarter.

And if demand recovers, there is also great excitement in supply.

In the last year in Italy – according to Trends data – 61 new luxury hotels opened in large cities and in decentralized areas enhancing regional and cultural heritage.

The nautical sector is also driving the market, where in addition to the yachting sector, the rental of sailboats and sailing ships is registering a high demand, proving that even luxury travelers are increasingly sensitive to sustainability.

Finally, according to estimates by Altagamma and Global Blue, by 2025, luxury world travelers will reach 450 million people, compared to 390 million in 2019. This means new substantial opportunities also for the industry of travel and hospitality, perhaps further innovating the concept of luxury holidays.

Full article: Half a Billion Ultra Rich Make for Luxury Tourism Treasure
Copyright: eTurboNews – Travel Industry News – World Travel News

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