The Affluent Traveller by Arival revealed that younger travellers are willing to spend more on their travels compared that to their older generation counterparts. The report discovered that the young affluent demographic (between the ages 18-44) represent two-thirds of all affluent travellers driving up the share of bookings and spending.
There is a stark contrast in spending as young affluent travellers spend up to $5,000 compared to middle-income travellers who spend on average $3,597 on each trip. Once the bedrock on of the travelling industry, the middle-class has seen a decline in consumer influence.
This can be nailed down to the economic pressures faced by the middle-class. For example, affluent middle-income households now represent 51% of travellers, down from 58% in 2019.
Affluent travellers are on the rise, while their middle-income counterparts are journeying lessHowever, the upper class with an annual household income of $150,00 or more now makes up nearly half of the market. There has been an increase in spending on tours, activities and attractions. This high-income households account for nearly a third of all bookings.
CEO of Arival Douglas Quinby said: “The shift in traveller demographics could signal a bigger, more fundamental shift with enormous long-term implications for our industry. A smaller subset of travellers are especially hungry for experiences, with their preferences meaning some operators may need to adapt their offerings to attract these travellers.”
The upcoming Arival 360 event in San Diego will address these findings to assess if this is a cyclical trend or a seismic shift. The event will be attended by industry leaders who will discuss in depth how the growing gap of wealth creates both challenges and opportunities within the tourism sector, with potential for a new market segment geared towards a growing affluent class.
