2023-11-29
In a pivotal segment of the 2023 WTA • Xianghu Dialogue titled “Breaking the Mould&Establishing the New: Tourism Defines the Future”, Mr. SHEN Jun, Account Director, Member Relations Asia, VIRTUOSO, shared his insights on the “Luxury Travel Market and Its Trends”.
Here are excerpts from his speech:
VIRTUOSO serves as a transactional platform for buyers and sellers in the luxury travel industry, offering brand endorsement and marketing services to resource providers. As of the end of 2023, our network boasts over 1,200 high-end travel agency members and more than 2,200 preferred partners across 50 countries, with an average annual booking volume of $28-32 billion. Essentially, VIRTUOSO acts as a bridge between buyers and sellers.
Globally, many renowned luxury hotels, destination management companies, and cruise lines are partners of VIRTUOSO. We are also the world’s first global partner for a civilian space travel company, having successfully sold three space travel spots in 2023, with plans to send three Asian travelers to space in 2024 or 2025.
The luxury travel market has shown robust growth in 2023. VIRTUOSO’s sales in the first half of the year have already surpassed last year’s, marking a 37% increase. Compared to 2019, there’s a 56% increase in total sales volume. Over the next 1-2 years, we anticipate a 39% growth in luxury travel sales, a 109% increase from pre-pandemic levels. Bookings for luxury hotels in 2023 have also exceeded pre-pandemic figures, indicating strong growth in the luxury travel market.
Major consulting firms are optimistic about global outbound spending. By the third quarter of 2024, global outbound expenditure is expected to return to pre-pandemic levels. The high-net-worth population, with over $1 million in investable assets, exceeded 46.68 million in 2021 and is projected to increase by 16 million by 2026, with the most significant growth in China. China is poised to become the largest high-quality travel source market after the United States.
At VIRTUOSO, we aim to redefine luxury travel beyond mere opulence and extravagance. In Western culture, luxury is often seen as a desirable lifestyle. However, in Chinese contexts, it can sometimes carry negative connotations. We believe luxury travel clients are those willing to pay for added value and seek deeper connections. The essence of luxury travel is about people and experiences, focusing on social aspects, brand design, service, experiences, and emotional enrichment.
Regarding the future trends of luxury travel, VIRTUOSO believes that the global luxury travel market will become mature, with more specialized players emerging in both B2C and B2B markets. Artificial Intelligence (AI) will liberate labor forces such as travel consultants, and new technologies will create new demands, but the need for human connections will never be replaced. In this context, VIRTUOSO envisions future luxury travel as “automating everything predictable and humanizing everything unpredictable”.
Finally, I would like to convey VIRTUOSO’s definition of luxury travel with a line from an ancient poem: “From the zenith of the skies to the nadir of the abyss”. This embodies VIRTUOSO’s spirit of going to great lengths to satisfy our clients’ needs in luxury travel.