The Torre PwC, one of four impressive skyscrapers in Madrid’s Cuatro Torres Business Area. The city … More is home to many multinational companies, ranking fourth in Europe after London, Paris and Amsterdam. Copyright (c) 2023 Cavan-Images/Shutterstock.

With its exquisite mix of modern and meticulously maintained historic architecture, rich culture and enviable lifestyle, Madrid is quietly becoming a magnet for high-net-worth (HNW) and ultra-high-net-worth (UHNW) families and expats.

This year, the city ranked among the top five relocation destinations for HNW families, surpassing post-Brexit London in desirability.

“Madrid is moving,” says Carolina Martínez-Caro, a wealth management expert specializing in family offices. “Before, everyone was enamored with Barcelona, but the focus has shifted. Everyone wants a piece of Madrid.”

El Retiro, the “green lung” of Madrid’s city center, lies directly due south from the leafy El Viso … More neighborhood. Copyright (c) 2018 Jose Luis Carrascosa/Shutterstock

Many of these newcomers hail from South America, drawn by the shared language and an easier pace of life. Data backs this up: flight statistics reveal that Mexico and Colombia led the way as the fastest-growing source markets for flights to Madrid in 2023. Affluent individuals from both East and West coasts of the U.S., seeking quality of life at significantly lower costs, are also looking to Madrid as a sanctuary.

When choosing where to live here, tranquility and exclusivity rank high on the list of considerations for the ultra-rich. Depending on your lifestyle priorities, different areas of the city offer different benefits.

The quietly exclusive hidden gem : El Viso

El Viso, a serene residential pocket near the fashionable Salamanca neighborhood, is home to prominent residents, including Pritzker Prize-winning architects and the president of Real Madrid football club, as well as top names from Spain’s Forbes list. These quiet streets hold the highest average per capita income in all of Spain, data shows. Built as a Garden City in the early part of the 20th century, the neighborhood sits within a 10-minute drive from museums, embassies, private hospitals and the recently renovated Santiago Bernabéu Stadium. Here, leafy boulevards abound and children’s bikes are more common than motorcycles. It’s a real “hidden gem,” still under the radar of most expats, says José Ribes Bas, general manager of luxury real estate firm Rimontgó.

Designed by Andrés Rebuelta, this tranquil home embodies the refined charm of El Viso—understated … More yet undeniably captivating. Price on application. Rimontgó

Best for ultimate privacy and security: La Moraleja

“Many foreign families prefer the peacefulness of gated communities,” Ribes Bas observes. Not only do the 24/7 security and iron gates offer ultimate seclusion, but properties also come with much larger plots and gardens. For high-profile figures, privacy and normalcy are paramount, and discretion becomes an unspoken rule among those who share this rarefied space.

This new-build villa in the exclusive gated community of La Moraleja covers 2,200 square meters … More (23,680 sq ft) plus extensive grounds and gardens. On the market for €11 million (~$11.85 million). Rimontgó

Consider La Moraleja in Alcobendas, a wealthy enclave of contemporary single-family villas where the Beckham family kept a residence during David Beckham’s time with Real Madrid. Other notable residents include professional footballers Vinicius Júnior, Luka Modrić and Sergio Ramos, as well as Hollywood film star Richard Gere. Elite private schools here offer the International Baccalaureate curriculum, and deals are sealed on the golf course.

Recreation facilities at this 7-bedroom, 7-bathroom home include an indoor heated swimming pool, … More sauna and spa area, plus outdoor padel court, a cinema room and a wine cellar. Rimontgó

Space and serenity : Las Rozas

Las Rozas, a bit farther out, offers an alternative, with mountain trails and scenic hikes for those seeking an active lifestyle. Or who need the space and privacy that a large house with gardens provides for entertaining extended family or visiting clients. Nearby steakhouses, sports clubs and golf courses, boutiques and private schools create a self-sufficient community that nevertheless remains connected to the beating heart of the city center.

“Madrid is one of the most comfortable places to live,” says Ribes Bas. “You can be in your house in the outskirts with total privacy, and in 20 minutes, you can be in the center with the best restaurants without any problems for parking or security.” Undeniable advantages that add to quality of life.

Twenty minutes from Madrid city center, properties in Las Rozas overlook the rolling hills of the … More Spanish countryside. Rimontgó

Tax incentives draw new residents

If the city’s cultural and lifestyle benefits aren’t enough, then let’s look at some of the friendly tax conditions that are helping to give Madrid its moment.

For nearly a decade, Spain’s Golden Visa program has attracted foreigners with easy access to the European Union through real estate investments (though the government has been considering phasing out the property route in early 2025). Even so, demand remains high due to the country’s favorable tax structure. Visa holders pay taxes only on income earned within Spain, a significant draw for high earners who conduct business abroad.

Madrid’s local tax policies add further appeal. While Spain’s Socialist Party supports higher taxes on top earners, the conservative regional government offers relief: residents are fully exempt from the national “Wealth Tax” imposed on the upper class, and foreign investors in Madrid can offset 20% of their investment costs against taxes.

So far, Madrid’s welcoming approach seems to be paying off. Recent data shows that Madrid attracted nearly 70% of Spain’s foreign investment in the first half of 2024. The city is a powerhouse in Spain’s economy: since 2013, it has accounted for 77% of all the jobs created in the country.

A city of talent and culture

CaixaForum, the Herzog and de Meuron-designed museum and cultural center in Madrid’s Paseo del … More Prado. Shutterstock

Few cities rival Madrid for its blend of culture, class and cleanliness. The Golden Triangle of Art—an enclave of museums teeming with world-class collections—attracts top curators and academics. More intimate events and exhibitions are frequently hosted by the city’s private galleries and art foundations.

Madrid stands out for its education options, hosting over 180 international schools—more than any other European city, second only to Dubai globally. And when those kids graduate? There’s IE Business School for more rubbing of shoulders with future movers and shakers.

Then there’s the city’s renowned culinary scene. This year alone, six restaurants earned their first Michelin stars, bringing the city’s total to 26. While new dining rooms, theaters and shops emerge daily, Madrid’s timeless charm remains one of its biggest draws.

A perfect example: Museo Chicote. Step inside this Art Deco bar—Madrid’s first cocktail haven—and you’re immersed in history. Ruby-red leather seats and vintage photos capturing 20th-century legends like Sophia Loren and Salvador Dalí line the walls. Yet perhaps no one embodies its spirit more than Ernest Hemingway, who once deemed Madrid “The Capital of the World.”

Look closely and you’ll discover that Hemingway’s adoration for Madrid wasn’t so different from today’s wealthy admirers. Even if he was a bit more partial to whiskey and bullfights.

And once you’ve settled in Madrid, where next? As an old Spanish saying goes, De Madrid al Cielo— from Madrid to Heaven.

Rimontgó is a founding partner of Forbes Global Properties, an invitation-only network of top-tier brokerages worldwide and the exclusive real estate partner of Forbes.

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Have you ever stayed at a hotel and liked it so much you yearned to live there? These days, there are more options than ever to do just that. A large majority of high-end hospitality companies have branched into the residential market, offering buyers a chance to own a slice of their favorite hotels and stay on permanent vacation as long as they like. And this market is booming, with entire properties selling out mere days after sales launch, and more announced on a weekly basis. It appears that the well-traveled elite prefer to have permanent bases—preferably managed, serviced, and designed by companies they trust to deliver this exceptionally. “Branded residences are a natural evolution in the luxury travel space,” says Louise Bang, chief sales and marketing officer for Marriott International in the Caribbean and Latin America, which encompasses brands including St. Regis and Ritz-Carlton. “For years, the ultra-wealthy have sought out private villas or timeshares for their getaways, seeking an added layer of privacy and a feeling of ownership. Now, we’re seeing those preferences converge with the rise of branded residences.”

The Waldorf Astoria in Manhattan will debut 375 private residences next year. Photo: Tim Lenz The Waldorf Astoria offers residents access to 50,000 square feet of private amenities on the uppermost floors. Photo: Tim Lenz

This sweet spot between home and holiday allows homeowners to arrive at their preferred destination—whether for business, visiting family, or simply an escape—with familiar comforts at their fingertips. And this is evidently very appealing to a large proportion of affluent buyers. “This shift also aligns with the rising trend of intergenerational travel, where families and groups seek accommodations with the comforts of home and the luxuries of a vacation,” Bang continues. Whether traveling alone or with others, high-net-worth individuals are catching on to the benefits that a residence managed by a hospitality brand brings, and demand is increasing exponentially.

The Waldorf Astoria underwent a multi-billion-dollar overhaul. Photo: Courtesy of the Waldorf Astoria

“Branded residences provide a level of service and lifestyle that traditional residential projects cannot match,” says Andre Zotoff, CEO of Strategic Hotels & Resorts. The company is behind the relaunch of the iconic Waldorf Astoria in Manhattan, which will debut 375 private residences when the historic structure re-opens next year after a multi-billion-dollar overhaul. Giving over almost half of the building to residential is indicative of “the growing trend of branded residences,” where “Waldorf Astoria saw an opportunity to expand its status to the luxury real estate sector,” Zotoff shares. Joining multiple similar options in New York City, the Waldorf Astoria hopes to lure future residents with access to 50,000 square feet of private amenities on the uppermost floors, and “a chance for prospective residents to be a part of [the building’s] legacy.”

The Aman has 22 opened and forthcoming branded residences around the world. Photo: Adrian Gaut The Aman Residences in New York. Photo: Adrian Gaut

Meanwhile, brands that entered this market early are growing their residential portfolio at a rapid pace, and expanding globally in the process. While confined to the North American market—with some exceptions—until recently, “there has been a global boom in the market for branded residences, with newfound demand in regions such as Asia, Europe and the Middle East,” according to Adelina Wong Ettelson, global head of Residences marketing at Mandarin Oriental Hotel Group. The group has projects operating in locations from Barcelona to Bangkok, and several in the pipeline in Vienna, Madrid, Munich, and more.

Residences at Zadún, a Ritz-Carlton Reserve. Photo: Courtesy of Ritz-Carlton

Most luxury hotel brands began their residential offerings within their existing or newly built properties, allowing residents to use all of the on-site resort amenities—concierge services, housekeeping, Michelin-starred dining, and spa and wellness facilities—and staff to be efficiently shared across both. Now, with demand so high, more brands are launching standalone residential properties so that residents can receive the same highly serviced lifestyle without having to mingle with hotel guests. Aman opened its first standalone residences in Tokyo earlier this year, offering buyers “the elegance, simplicity and personal attention to detail of an Aman hotel, balanced with the seclusion of a private home in an exceptional location,” says ​​Vanessa Grout, the brand’s global head of residences.

Designed by Philippe Starck and Jean Nouvel, the Rosewood São Paulo’s Mata Atlântica Tower boasts a stunning penthouse suite with art and collectible design by Brazilian talents. Photo: Matthieu Salvaing

One of the top draws for buyers in this market is design. The big luxury brands have the money and the gravitas to pull-in internationally renowned architects and interior designers to create spectacular buildings and spaces for private residences, as they often do for their hotels. And if an individual or family is enamored by a particular aesthetic at their favorite resort, they can easily buy into it by opting for a branded residence from the same group. “Brand loyalty and recognition, state-of-the-art facilities and services, and design by world-renowned architects are all reasons why buyers are gravitating toward branded residences,” says Grout, noting that Aman has 22 opened and forthcoming branded residences around the world since its first in Phuket, Thailand, in 1998.

W Residences Costa Rica, Reserva Conchal. Photo: Courtesy of W Residences

Hiring a designer to renovate a home can be time-consuming and costly, and many homeowners don’t want to deal with the hassle, so a turnkey service and a move-in-ready space is highly appealing—especially since “oftentimes buyers are entering into this market for their second, third, or even fourth home” says Brad Berry, vice president global residential development at Rosewood. The brand recently debuted residences by Philippe Starck—including a spectacular penthouse—within the Jean Nouvel-designed tower at its São Paulo resort, and is due to launch sales for new properties in Beverly Hills and Los Cabos very soon.

The Residences at Mandarin Oriental Da Nang. Photo: Courtesy of the Mandarin Oriental Hotel Group

Homeowners at some branded residences can rent out their properties when not in use, and the operator takes care of it all without them having to lift a finger. Everything is put back exactly as they left it. Whatsmore, residents of hotel-operated properties receive exclusive access to events, special rates at other locations around the world, as well as the perks of 24-hour concierge service and much more. “They can offer an owner benefits package that’s beyond what design or luxury retail brands can offer to high-net-worth individuals, especially those who travel frequently and who have homes in different markets which we know is the case for many of our loyal customers,” says Zotoff.

St. Regis Bahia Beach Residences. Photo: Courtesy of the St. Regis

This is what gives luxury hospitality groups the edge over those in other sectors that have ventured into the space. Fashion brands such as Armani, Dolce & Gabbana, Fendi, Missoni, and Bulgari, and car companies including Porsche, Mercedes-Benz, Bentley, Bugatti, and Aston Martin are among those who have also been developing own branded residences for years—many of them in cities like Miami or Dubai, where the luxury market is already incredibly strong. But hoteliers are in a unique position to offer their residents, given their established experience and proven track records of providing the type of exceptional service that buyers in this very top price range expect. “At the end of the day, it is not just about the name on the building, but the experience and service that matters,” says Rosewood’s Berry.

Residents at Dorado Beach, a Ritz-Carlton Reserve. Photo: Courtesy of the Ritz-Carlton

With so many options, which one to choose? As Aman’s Grout mentioned, it all comes down to brand loyalty—an invaluable asset in today’s world. And from those companies with a dedicated following, expect to see many more branded residences in the near future.

See more images below:

The Residences at Mandarin Oriental, Miami. Photo: Courtesy of the Mandarin Oriental Hotel Group

Residents at Dorado Beach, a Ritz-Carlton Reserve. Photo: Courtesy of the Ritz-Carlton

Ritz-Carlton Residences, Turks & Caicos. Photo: Courtesy of Ritz-Carlton

The Medieval Village of Albarracin, Teruel, Aragon, Spain—one of CNTraveler’s Best Places To Visit in 2025 getty

Spain repeatedly ranked highly on many travelers’ favorite places in 2024, and several parts of the country are listed on many Best Places to Travel in 2025 lists by Bloomberg and CNTraveler. And in 2024, Spain was the third most searched country for Americans to visit or move to, after Canada and the U.K. (before Mexico and Italy). So, what about staying longer and making Spain your home? How much money would you need to live in Spain, and how much would you need to rent or buy a property? Here’s what it means to be wealthy in Spain.

Spain Is Still A Firm Visitor Favorite

CNTraveler 2024 Readers’ Choice Awards listed Spain in fifth place on the list of Best Countries In The World, citing that Barcelona has two of the Best 50 Bars In The World and the Spanish know how to eat and drink well.

The Canary Islands also feature on Bloomberg’s Best Places To Travel In 2025, namely because the tourist scene has evolved into a marvelous patchwork of opportunities allowing visitors to “hike through vertiginous landscapes, shop in boutiques tucked along cobbled lanes or lie on the beach with a book” on the three largest islands of Tenerife, Gran Canaria, and Lanzarote. Bloomberg cites the latter as the one to visit, with new A-grade resorts and stunning culinary and wine options.

CNTraveler listed Matarraña in Spain on its list of The Best Places To Go In 2025 because of its natural beauty and undisturbed stargazing, not to mention the waterfalls, hiking routes, and sublime villages.

This is despite the increasing strain felt in many key Spanish tourist areas throughout 2024, where the influx of visitors pushed many destinations to breaking point, leading to conflict with locals, protests at rent hikes, and overcrowding. Indeed, Fodor listed Barcelona, Mallorca, and The Canary Islands on its ‘No List’ for 2025, which advised people not to travel.

Being Wealthy In Spain–Spain’s Cost Of Living

When taken globally, a comparison of the cost of living in Spain is lower than it is in many other countries such as the U.S. and France:

France: $1,200 per month for a single person, not including rent.

U.S.: $1,166 per month for a single person, not including rent.

Canada: $1023 per month for a single person, not including rent.

Malta: $801 per month for a single person, not including rent.

Spain: $731 per month for a single person, not including rent.

Thailand: $650 per month for a single person, not including rent.

Portugal: $592 per month for a single person, not including rent.

When comparing EU countries, it’s clear that the cost of living in Spain is far less than in some of its neighbors, namely France, where the cost of living is 25% higher.

However, when you factor in rent, Spain is a little more expensive than its French neighbor, where rent is almost 9% higher on average. However, this might seem reasonable compared to rental costs across the Atlantic, where, on average, rent in Canada is 59% higher than in France, and rent in the U.S. is 52% higher than in France.

Being Wealthy In Spain–Spain’s Average Annual Salary

The average annual salary in Spain was approximately $31,000 (€30,655) in 2023, although this has fluctuated quite a bit throughout the past two decades.

Spain’s average annual salary is on the lower side compared to other EU countries. It is higher than the average annual salary of workers in Portugal, at about $23,000, or Malta at $21,500 (€21,000), according to Malta’s Office of National Statistics.

Spain’s average annual salary is comparable to those found in Italy and Slovenia but lower than those in France, Germany, or Ireland. However, the cost of living in Spain is far lower than in other places across the EU, except for Barcelona and Madrid.

Compared to the U.S. or Canada, this is considerably lower. The average salary in the U.S., depending on the state, varies from $76,000 per year in Massachusetts, New York, and California to about $49,000 in Mississippi, Arkansas, and West Virginia. In Canada, the average salary is about $45,000, depending on the province (CAD 63,013).

Being Wealthy In Spain–The Top 10%

In 2022, the top 10% of earners brought home pre-tax earnings of €95,000 ($97,000), more than nine times the average for the bottom 50% of earners in Spain.

In 2023, the top 10% of earners in Spain brought home a combined total of 34% of Spain’s income before taxes, as per Statista.

Being Wealthy In Spain–Average Net Worth

Most Spanish households obtain their wealth through real estate value; in 2022, the median net wealth was around $186,000 (€181,300). The median value of financial assets held was about $18,000.

Spain is an attractive proposition for visitors and expats who wish to make a European home, either temporarily or permanently. What it means to be wealthy in Spain is significantly lower than in other European countries and the U.S., and it has a lower cost of living.

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There are exactly 2,640 billionaires in the world, according to the CEOWORLD magazine. That’s about 0.00003% of the global population. The Billionaires’ Social Calendar comprises various events, festivals, and conferences that are attended by some of the wealthiest individuals in the world. Although there is no official calendar, this list includes events where the ultra-rich mingle primarily with each other.

The picturesque island of St. Barts is a favorite holiday destination for billionaires, boasting more ultra-rich visitors per square foot than any other place in the world, including Aspen and Maldives. The Caribbean island, also known as Saint-Barthélemy, is known for its extravagant year-end festivities, which have attracted the most luxurious yachts owned by the likes of David Geffen, Barry Diller, and Diane von Furstenberg, as well as Bernard Arnault, in previous years.

After their New Year’s Eve celebrations, many billionaires attend the World Economic Forum’s annual meeting in Davos to network and discuss global issues while enjoying the Swiss Alps. For most billionaires, the purpose of this calendar is mainly for business travel and meeting professional contacts rather than attending the nominal event.

Billionaires, like everyone else, seek out friends who share similar interests, skills, and lifestyles. However, what sets them apart is their vast social networks that often include other ultra-high net worth (UHNW) individuals and even other billionaires. On average, a billionaire’s network consists of 12 additional UHNW individuals, including 5 other billionaires. Travel is the second most popular interest among billionaires after philanthropy, with 31% of them either engaging in or considering travel-related activities. Here is a list of the most favored worldwide destinations on the traditional social events calendar of many billionaires and the ultra-wealthy. This is where billionaires socialize, discuss business, and unwind.

January, 2024

World Economic Forum – Davos, Switzerland (15–19 January 2024)

Art Stage – Singapore (19 – 21 January 2024)

St. Moritz Polo World Cup – St Moritz, Switzerland (26-28 January 2024)

Sundance Film Festival – Utah, United States (18-28 January 2024)

World Economic Forum – Davos, Switzerland (15–19 January 2024) Art Stage – Singapore (19 – 21 January 2024) St. Moritz Polo World Cup – St Moritz, Switzerland (26-28 January 2024) Sundance Film Festival – Utah, United States (18-28 January 2024) February, 2024

India Art Fair – Delhi, India (1-4 February 2024)

Vienna Opera Ball – Vienna, Austria (February 8, 2024)

Super Bowl LVIII – Allegiant Stadium in Las Vegas, Nevada, United States (February 11, 2024)

White Turf International Horse Races – St. Moritz, Switzerland (February 18, 2024)

Miami Yacht and Brokerage Show – Miami, United States (February 14-18, 2024)

India Art Fair – Delhi, India (1-4 February 2024) Vienna Opera Ball – Vienna, Austria (February 8, 2024) Super Bowl LVIII – Allegiant Stadium in Las Vegas, Nevada, United States (February 11, 2024) White Turf International Horse Races – St. Moritz, Switzerland (February 18, 2024) Miami Yacht and Brokerage Show – Miami, United States (February 14-18, 2024) March, 2024

Dubai International Boat Show – Dubai, United Arab Emirates (1-3 March, 2024)

Art Basel in Hong Kong – Hong Kong Convention and Exhibition Centre, Wan Chai, Hong Kong (28-30 March, 2024)

Dubai International Boat Show – Dubai, United Arab Emirates (1-3 March, 2024) Art Basel in Hong Kong – Hong Kong Convention and Exhibition Centre, Wan Chai, Hong Kong (28-30 March, 2024) April, 2024

The Masters Tournament – Augusta National Golf Club, Georgia, United States (April 08-14, 2024)

Singapore Yacht Show – Singapore

The Masters Tournament – Augusta National Golf Club, Georgia, United States (April 08-14, 2024) Singapore Yacht Show – Singapore May, 2024

MET Gala – New York, United States (May 6, 204)

The Cannes Film Festival – Palais des Festivals et des Congrès, Cannes, France (May 14-15, 2024)

Monaco Grand Prix (May 23-26, 2024)

Glyndebourne Opera Festival – East Sussex, United Kingdom

Kentucky Derby Horse Race – Kentucky, United States

MET Gala – New York, United States (May 6, 204) The Cannes Film Festival – Palais des Festivals et des Congrès, Cannes, France (May 14-15, 2024) Monaco Grand Prix (May 23-26, 2024) Glyndebourne Opera Festival – East Sussex, United Kingdom Kentucky Derby Horse Race – Kentucky, United States June, 2024

The Royal Ascot – 25 miles outside London, United Kingdom (June 18-22)

US Open Golf Tournament – Pennsylvania, United States

The Royal Ascot – 25 miles outside London, United Kingdom (June 18-22) US Open Golf Tournament – Pennsylvania, United States July, 2024

Wimbledon – London, UK (July 1-14)

Henley Royal Regatta – Henley on Thames, United Kingdom (July 2-7)

Allen & Company Sun Valley Conference (billionaire summer camp), Sun Valley, Idaho, United States (July 15-18)

Bayreuther Wagner Music Festival – Bayreuth, Germany

Wimbledon – London, UK (July 1-14) Henley Royal Regatta – Henley on Thames, United Kingdom (July 2-7) Allen & Company Sun Valley Conference (billionaire summer camp), Sun Valley, Idaho, United States (July 15-18) Bayreuther Wagner Music Festival – Bayreuth, Germany August, 2024

Monterey Car Week (Aug 9, 2024)

US PGA Golf Championship – North Carolina, United States

Venice International Film Festival – Venice, Italy

Beijing International Music Festival – Beijing, China

Monterey Car Week (Aug 9, 2024) US PGA Golf Championship – North Carolina, United States Venice International Film Festival – Venice, Italy Beijing International Music Festival – Beijing, China September, 2024

Monaco Yacht Show – Monte Carlo, Monaco (September 25-28)

Salon Prive Supercar Show – Woodstock, United Kingdom

Ryder Cup Golf Championship – Minnesota, United States

Singapore F1 Grand Prix – Singapore

New York Fashion Week – New York, United States

London Fashion Week – London, United Kingdom

Milan Fashion Week – Milan, Italy

Paris Fashion Week – Paris, France

Monaco Yacht Show – Monte Carlo, Monaco (September 25-28) Salon Prive Supercar Show – Woodstock, United Kingdom Ryder Cup Golf Championship – Minnesota, United States Singapore F1 Grand Prix – Singapore New York Fashion Week – New York, United States London Fashion Week – London, United Kingdom Milan Fashion Week – Milan, Italy Paris Fashion Week – Paris, France October, 2024

Frieze Masters Art Show – London, United Kingdom

Frieze Masters Art Show – London, United Kingdom November, 2024

Melbourne Cup – Melbourne, Australia (November 5, 2024)

Bal des Débutantes Fashion Show – Paris, France

Melbourne Cup – Melbourne, Australia (November 5, 2024) Bal des Débutantes Fashion Show – Paris, France December, 2024

La Scala Opera House Opening Night – Milan, Italy

New Year in Saint Barthélemy

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Demand for luxury tourism and hospitality is expected to grow faster than for any other industry segment. This growth is being powered in part by a sharp rise in the number of individuals globally with net worths between $1 million and $30 million. But it’s also resulting from a large and expanding base of aspiring luxury travelers with net worths between $100,000 and $1 million, many of whom are younger and increasingly willing to spend larger shares of their wealth on upscale travel options (Exhibit 1).

About the authors This article is a collaborative effort by Caroline Tufft, Margaux Constantin, Matteo Pacca, and Ryan Mann, with Ivan Gladstone and Jasperina de Vries, representing views from McKinsey’s Travel, Logistics & Infrastructure Practice.

We dug deeper into this ongoing evolution by surveying luxury travelers (defined here as those who spend, on average, $500 or more per night on lodging) to inquire about their preferences, plans, and expectations. Our survey of more than 5,000 luxury travelers was in the field in February and March of this year. The respondent pool included travelers from five major, representative source markets: China, Germany, the United Arab Emirates, the United Kingdom, and the United States. All respondents took at least one leisure trip in the past two years.

Findings from this survey, coupled with input from industry experts, suggest that some commonly held perceptions about luxury travelers might be due for reassessment.

Perception one: All luxury travelers are very wealthy

The image that luxury travel conjures is one of vacationers with millions of dollars to their names. In fact, 35 percent of the luxury-travel market is now composed of travelers with net worths of between $100,000 and $1 million.

Luxury means different things to travelers at different wealth levels. High-net-worth individuals (HNWIs), with assets ranging between $1 million and $5 million, tend to trust boutique travel agents, seek privacy and exclusivity, and favor exotic destinations. Very-high-net-worth individuals (VHNWIs), with assets ranging between $5 million and $30 million, are relatively more likely to book large suites to preserve intimacy and tranquility, prefer end-to-end experiences steeped in local ambiance, and may be less focused on hotel brand names. Ultrahigh-net-worth individuals (UHNWIs), with more than $30 million in assets, prefer quiet luxury with personalized service—targeting remote, private destinations, accessible via private airports or helipads, that feature tailored experiences available nowhere else.

Aspiring luxury travelers have their own set of preferences (Exhibit 2). They might splurge on special occasions, prefer visibly branded luxury, demand value for their money, and pay close attention to loyalty program points and benefits. They might be willing to spend big on individual components of their travel—such as a helicopter tour or fine-dining experience—but not on every aspect of a trip.

It’s crucial to understand this nonmillionaire segment for two reasons. First, it’s comparatively large. Second, its forays into select prestige elements present opportunities for brands that hope to attract its enduring loyalty—especially as some of its members graduate into higher tiers of income and wealth.

Aspiring luxury travelers often rely on branding to validate their sense that an experience is luxurious. Strong luxury-hospitality brands can explore creating entry-level offerings to engage with this segment. (Indeed, many luxury hotels are already targeting aspirational travelers by offering more affordable standard rooms alongside pricey ultraluxury suites.)

Existing luxury brands can also cross categories to capitalize on this segment. For instance, Bulgari entered the hotel space as part of a collaboration with The Ritz-Carlton Hotel—the luxury watchmaker is expected to have a dozen collaboration-driven properties by 2026. Elle, the global lifestyle brand, has announced it will launch two hospitality ventures: Maison Elle and Elle Hotel. And high-end shoemaker Christian Louboutin opened a boutique hotel on Portugal’s coast.

Perception two: Luxury travelers come from Europe and the United States

The geographical balance of wealth is shifting. Although North America is still home to the most millionaires, it could be overtaken by Asia by the mid-2030s—largely as a result of growing wealth in China.

The rapid growth of wealth in Asia is spurring a boom in regional hotel construction (Exhibit 3). A 2023 assessment of the global luxury-hotel pipeline found that 41 percent of hotel rooms in the pipeline are in Asia, with 43 percent of those in China. The luxury-hotel supply in Asia, both existing and in the pipeline, leans heavily toward larger properties, chains, and franchises, reflecting the industry landscape in Asia as well as a preference among Asian travelers for luxury brands they know and trust.

The chair of Shangri-La on the unique preferences of Chinese luxury travelers Kuok Hui Kwong is chair of Shangri-La, which has more than 100 hotels in 78 destinations. McKinsey spoke with her about what Chinese luxury travelers want, the strength of the Chinese domestic tourism market, the value of catering to intergenerational travelers, and the importance of giving talent good opportunities. The following is an edited version of the conversation. McKinsey: Shangri-La is a global group, but it’s very rooted in Asian hospitality, and it attracts many Chinese consumers. Are you seeing different behaviors for luxury travelers from China? Are they beginning to travel more domestically? Kuok Hui Kwong Headshot of Kuok Hui Kwong Kuok Hui Kwong: During the COVID-19 pandemic, a lot of wealthy Chinese customers who would have chosen to travel abroad instead spent three years traveling domestically. Now the borders have opened up and international travel is much easier, but I think the habit of consuming travel experiences domestically is a trend that’s here to stay. China has truly diverse tourism options, whether you want scenery or culture. Although we serve a global luxury audience, we’re particularly strong in Asia and have a deep understanding of Chinese consumers. Chinese consumers are increasingly discerning, sophisticated, and confident. While they do buy into bigger brands, I think they’re more and more looking for products and experiences that meet their particular needs and that celebrate and reflect their cultural identity. You can see this in the choices they make as they increasingly seek domestic brands, domestic makers, and domestic stay options. A lot of Chinese luxury travelers are looking for immersive experiences that connect with Chinese culture. They have strong preferences for Chinese food. They’re very concerned about safety and hygiene. They have payment options and ride-hailing options that they prefer. Traveling domestically solves for a lot of these issues. It’s also become much easier for travelers to reach destinations in China that were previously less accessible, with new flight networks and affordable and efficient high-speed rail connections. So we expect that domestic-experience consumption will continue to be strong. Because it’s such a huge market, fortunes can surge based on the customer’s domestic preferences. But it also means that the market is extremely competitive. It changes very fast. And consumers’ needs are constantly evolving. It also means it’s a market that can accept and looks for a lot of innovation. McKinsey: What sort of innovation is this discerning group of travelers looking for? What are you doing to innovate at Shangri-La? Kuok Hui Kwong: For us at Shangri-La, we’re seeing a lot of domestic leisure trips in China that are built around school holidays—with more and more parents taking their children on holiday to experience different parts of the country. So one of the main areas we’re very focused on is the family experience. In the China context, when we talk about experience seeking, a lot of times it’s multigenerational. It’s parents with their children, or it’s grandparents and parents and children all together. Because Chinese families are becoming smaller, their ability and willingness to spend on family experiences has gotten larger. The perception that Chinese luxury travelers only want to go overseas to buy high-end brands is no longer true. A new generation of luxury consumers wants to share experiences and quality moments with their families. Dialing into the family experience is definitely something we’ve been working on, even before the pandemic. A lot of hotels are eyeing this market as well. We own a lot of our underlying assets. So rather than just putting a kid’s tent in a room, for example, we can create an end-to-end, integrated, holistic experience that can be delightful. In Singapore, we launched our first family experience urban hotel in 2016, when we created a several-hundred-square-meter play zone. We repurposed two tennis courts to turn them into an outdoor splash and play water zone. And then we created a whole floor of family rooms and suites with differently themed rooms that would appeal to children. We continued this in Hong Kong and in Beijing, where we opened during the pandemic, and have plans to grow this in other destinations. Another area where we see a lot of innovation is food and beverage. That can mean regional cuisine, menu items, concepts, design and décor of restaurants, and the pairing of food with wine or baijiu [a clear liquor], along with the use of local Chinese products and Chinese cuisine with international accents. McKinsey: One big issue in the industry is talent retention—especially talent at the level where you have to train for not just general service but also your own brand standards and unique Asian hospitality touches. What do you do to attract and retain that talent and help them grow in the industry? Kuok Hui Kwong: I think that has to be part of your way of doing business and your corporate culture. What I personally love about Shangri-La is that it’s in our DNA to really care for our colleagues. We really lived this during the pandemic. In most of our markets, we were the very last to consider reducing our frontline workforce, and even when we did, it was minimal. This wasn’t a decision I made on my own—this is part of our culture, which I am very proud of. It also enabled us to ramp up much quicker postpandemic. It’s also about giving opportunities to some of our colleagues to move out of their home markets and develop their careers in a global setting. We’re one of the few Asian-headquartered companies that can afford to give a local Asian workforce global opportunities. And I think we can do even more of that going forward. Comments and opinions expressed by interviewees are their own and do not represent or reflect the opinions, policies, or positions of McKinsey & Company or have its endorsement.

Domestic travel is consistently the largest share of travel, so luxury demand in places where HNWI and UHNWI populations are large and expanding will likely be high. Providers in these regions may want to consider how to meet the specific needs and desires of increasingly affluent populations (see sidebar “The chair of Shangri-La on the unique preferences of Chinese luxury travelers”).

Perception three: Luxury travelers are old

While baby boomers do represent a significant portion of luxury spending, 80 percent of the luxury leisure market is in fact made up of people below the age of 60 (Exhibit 4). Spending on travel peaks between the ages of 40 and 60, and younger travelers show an increasing willingness and ability to spend at luxury levels.

Based on the current shape of the market, luxury providers should look for ways to cater to a middle-aged population, which will likely include a high proportion of families with adolescent children. Luxury players might consider devising offerings that can appeal to both parents and teens. Multigenerational luxury travel involving grandparents, parents, and kids is a growing trend, and these families often prefer to book villas that offer privacy and space for large groups.

People in their 20s make up a smaller share of the luxury market, but acquiring customers in this segment is still important. Their lifetime value can be significant, given the many years of luxury travel that likely lie ahead of them. Offerings for younger populations should be tailored to their interests, which tend to cluster around social experiences, authenticity, sustainability, and digital connectedness.

Perception four: Luxury travelers all crave exotic experiences

It’s true that luxury travelers are comparatively more likely to go on exotic and adventure-focused vacations, such as yachting trips or safaris. This is unsurprising, given the higher costs of these types of outings.

However, the largest share of luxury travelers still want to do the same kinds of things that other travelers do. Sixty-five percent of them express intent to go on sunny beach vacations, and 55 percent say they’re planning to book relaxing getaways (Exhibit 5).

These travelers might not necessarily want a new kind of vacation, but they still want novelty. Seventy-two percent of luxury travelers place importance on visiting a new destination, compared with 44 percent of other travelers. Luxury travelers also travel substantially more than mass travelers—which means that unfamiliar destinations can quickly become familiar ones.

Sun and beach vacations remain the most preferred trips for luxury travelers, yet hotels in the associated locations constitute a relatively low share of luxury-hotel supply (Exhibit 6). Business travel, which skews supply toward cities, may account for some but not all of this discrepancy.

Taken together, these findings suggest that there could be opportunity to develop new luxury destinations that focus on offering traditional types of leisure or to refresh traditional destinations with revamped offerings that make them feel new even to frequent visitors. Upgrading accommodations (by, for instance, adding villas) or curating experiences (such as unique scuba dives or sailing journeys) could help lure past visitors to book another sunny beach stay.

Perception five: Luxury travelers want 24/7 digital connection

It might seem intuitive that high earners who are likely to spend much of their working time communicating via phones and laptops would demand continued connectivity while away from home. But luxury travelers who responded to our survey are two to three times more likely than mass travelers to say their main reasons for traveling are to meet new people and to disconnect from digital devices (Exhibit 7).

Small-group travel—for example, small luxury-cruise expeditions—is currently in high demand. On cruises, luxury travelers do want assurance that they will be digitally connected. But they also want to feel that they’re getting away from it all, being present in the moment, and meeting new people. Although resorts that are explicitly framed as “digital detox” destinations remain a highly niche accommodation choice, digital detoxing is an important theme both in marketing luxury lodging and in developing on-site offerings. Providers should consider finding ways to create inviting spaces for digital disconnection, such as common eating areas and shared tables.

Perception six: Luxury travelers don’t care about loyalty programs

Are luxury travelers above caring about hotel loyalty points and perks? Not quite. Sixty-eight percent of luxury travelers—compared with only 41 percent of mass travelers—say loyalty programs are an important factor when choosing accommodations.

That said, many luxury travelers look for a different kind of reward from loyalty programs. They’re less focused on accumulating points and redeeming them for free stays. They’re more attuned to the recognition that comes with being a valued loyalty customer and with the attentive service, foreknowledge of preferences, and exclusive privileges (such as access to hotel leadership) it can entail.

Luxury travelers are similarly more likely than mass travelers to care about hotel brands (77 percent versus 53 percent) and government-assigned star rankings (84 percent versus 66 percent). In general, luxury travelers want to trust that the places they choose will feature world-class aesthetics and robust amenity offerings. Brands, stars, and loyalty programs can all help communicate the reputation and perceived quality of an accommodation.

In comparing luxury travelers across regions, it’s clear that consideration of star rankings is uniformly high. But travelers from China and the United Arab Emirates are more likely than others to place a high value on brands and loyalty programs (Exhibit 8).

This finding could be influenced in part by the existing lodging supply in those countries. In China, for instance, branded hotels with loyalty programs are the dominant form of luxury accommodation. As Chinese domestic hotel supply develops—and is increasingly dominated by chains rather than independent players—it could further elevate the importance of branding and loyalty.

Perception seven: Luxury tourists are done with resorts

All-inclusive resorts—replete with buffets, standardized drinks, and family-targeted activities—may not seem as if they would appeal to luxury travelers. The truth is that luxury travelers do still turn to all-inclusives for the ease, convenience, and wide variety of instantly accessible activities they can provide. But luxury travelers want these accommodations to feature exclusive offerings and personalization.

To court luxury travelers, resorts might consider offering dedicated concierge desks willing to go the extra mile in booking unique activities and difficult-to-get reservations. Customized dining options, such as chefs willing to cook any meal on demand, can also appeal to this group. In addition, resorts might offer adventurous experiences such as scuba diving, sailing lessons, or guided hikes as part of the all-inclusive package.

Resorts should look for opportunities to use data and research to enable deeply personalized touches. This could include keeping track of dietary preferences (from stay to stay and across properties) or even inscribing guests’ nicknames on their slippers.

Perception eight: Luxury and scale don’t mix

Historically, the luxury segment and the exclusivity it entails have been associated with independently owned, landmark hotels. But there are brands that have successfully scaled luxury accommodation, and there are many elements of scale that luxury players can benefit from.

A few major brands, including Four Seasons Hotels and Mandarin Oriental Hotel, have managed to establish themselves as icons of luxury hospitality. And some groups, such as Leading Hotels of the World and Relais & Châteaux, have been able to unite a disparate set of independent and family-owned luxury hotels under a single, recognizable banner—serving as a trusted indicator of luxury quality at scale and granting smaller organizations strength in numbers.

A global footprint can ease the expansion of brands into new geographies, and it can serve as a hedge against regionally specific risks. A large luxury-hospitality brand can also broaden its focus beyond its core product, expanding across the value chain to become a more holistic experience provider—for example, the ultraluxury brand Aman has branched out into cruise expeditions and jet journeys. And finally, scale creates economies of, well, scale: with more rooms to offer, scaled brands lower their cost per room and increase their efficiency as they centralize functions such as staffing, training, technology, procurement, and operations.

Today, 70 percent of luxury-hotel properties are independent. But the supply pipeline is flipped, with chain and franchise properties accounting for 78 percent of planned hotels. New branded hotels coming online are also getting larger, in terms of total rooms. As luxury-hotel brands get bigger, they must ensure that they can still offer personalized, high-touch service. Achieving scale without sacrificing exclusivity—by, for instance, introducing luxury villas that are adjacent to a larger property—could be critical to success.

Perception nine: The traditional travel agent is dead

It’s true that inspiration for the luxury segment has become deeply tied to social networks instead of travel agents. This doesn’t mean, however, that there is no role left for travel agents to play. Luxury travelers continue to use travel agents instead of online platforms, in part because they simply want someone else to take care of the transactional booking details. Meanwhile, today’s luxury travel agents—who prefer to call themselves travel advisors—are superpowered by technology and data that enable both a personalized touch and a robust, responsive level of back-end service (see sidebar “The founder of Virtuoso on the evolution of the luxury-travel advisor”).

The founder of Virtuoso on the evolution of the luxury-travel advisor Matthew D. Upchurch is founder, chairman, and CEO of the luxury-travel-advising network Virtuoso. McKinsey spoke with Upchurch about his definition of luxury, his sense of what today’s luxury consumers are looking for, and his view on the evolution of the luxury-travel advisor. The following is an edited version of the conversation. McKinsey: We’ll start with a question that seems simple but isn’t—how do you define the luxury-travel segment? Matthew Upchurch: “Luxury” is an overused word, and not just in travel. People might try to quantify it and define it according to spending amounts. But to me, it’s more nuanced than that. Matthew D. Upchurch Headshot of Matthew D. Upchurch Start with the traveler. We now have five generations of people all traveling at the same time. And each luxury traveler may have many distinct personas, which change based on their stage of life and what kind of trip they’re taking. Are they traveling in a group, with family, on a “bleisure” trip? Then there are the hotel properties. As more commoditized segments get better at things like hyperpersonalization, and their hardware and design get better, it sometimes becomes harder to differentiate them from the luxury segment. We need to look at things more holistically. The real differentiator is how the customer feels. A luxury experience often means finding someone who will truly listen to what you want and then deliver beyond expectations. When it comes to helping a customer plan travel, good travel advisors differentiate by asking, “How do you want to feel on this trip? How do you want to feel when it’s over?” Determining this desired outcome is what helps deliver a truly modern luxury experience tailored specifically to the client. When this happens over multiple planning cycles, the advisor becomes a specialist in you, the client. Advisors can’t possibly know every part of the world—they have a global network at their disposal for that. But having someone who specializes in you, who knows your likes and dislikes and exactly how you want to travel without you having to explain it every time you plan a trip—that’s luxury. Perhaps, though, the simplest definition of luxury from the customer’s point of view is: “Of course I could do it myself. I don’t want to. And if I can have someone in my life who provides incredible experiences and is a fun collaborator, takes my input, has great connections, and can watch my back and do things for me, why would I want to do it myself?” McKinsey: What kind of fundamental changes are you seeing in terms of destination picks or product picks among your luxury travelers? Matthew Upchurch: With luxury experiential travelers, the fundamental creative tension is between the familiar and the unfamiliar. There’s often the desire to go back to places they love and have built relationships with over time—to show them to family and friends and see them through new eyes. But people want to know before they return to a familiar destination: Is there a new story happening there? I’ve been to Madrid many times in my life, so is there a new story in Madrid? Is there a new story in London? Has the destination itself transformed so that it’s familiar but still feels new? We’re also seeing a strong desire to explore. That’s one of the reasons expedition cruising is doing incredibly well. Expedition cruising is high end, not mass, and it’s absolutely bringing new luxury travelers to cruising. Because we’re starting to see a recurring issue with overcrowding at some destinations, we’re also seeing a lot of our sophisticated travelers increasingly taking trips during what was once called the “shoulder season.” They don’t want to be caught in an overcrowded major city in Europe in the summer, so either they’ll visit in September or October, or they’ll focus on secondary or tertiary cities instead. We’re even seeing some travelers going to Europe in November, December, and January. We call it the “cultural season.” I used to sell it by saying, “Why don’t you go there when the citizens are happy instead of annoyed with everybody that’s overwhelming their cities?” McKinsey: You have a rich repository of feedback from your clients. If you had to give one message to luxury-accommodation providers, what would it be? Matthew Upchurch: First, they need to get really good at being able to measure what’s not easily measurable. Because those are the things that make it luxury. Second, focus on staff culture. It’s crucial to engage with your employees and understand them. We need to make sure the people delivering the experiences feel fulfilled. I absolutely believe that those hospitality players that really focus on their employees, their culture, their service levels—those properties where you can truly feel the presence of the general manager—are the ones that will excel. Average daily room rates have been rising quickly. And the properties that don’t effectively focus on the experiences of both their employees and their customers will have trouble maintaining those high rates. Because lately we hear a lot of our customers saying, “I have never paid this much before. I used to pay $900 a night for a hotel in Miami, now it’s $2,000 for the same hotel, and frankly, the value isn’t there.” When price and value don’t align, it’s a huge danger for the property, and it will come back to haunt them. McKinsey: What kind of evolution have you seen in the way luxury travelers engage with travel advisors? Matthew Upchurch: If you go back to the middle of the 20th century, more people booked directly with the actual providers than they do today. International flights were a high-end product. Walking into Pan Am airline’s office on Fifth Avenue in 1950 was like walking into Bergdorf Goodman. There was pleasure in it. There was also very little pricing complexity because there were essentially just four fare classes—day coach, night coach, day first class, and night first class. So why would people use a travel advisor if a lot of providers had fabulous service and there was no price complexity? They did it for the same core reasons that they do it today. One is community knowledge: travel advisors have the collective knowledge of the community that they serve. They know what’s on the minds of other high-net-worth individuals that the customer respects. Another is the value of relationships: the customer might have heard of a certain luxury property, but the travel advisor might have a personal relationship with the general manager of the property. Things changed in the 1970s, when airfare classes got more complicated, and many travel agents made money by basically becoming human interfaces to the airline reservation systems. Things changed again in the late 1990s with the arrival of the online travel agencies like Expedia and Travelocity. The idea then was the consumer could do it themselves, and it would be cheaper than paying for the travel agent’s labor. That did cause a large exit of agents from the industry. But the true travel advisors, who were consultative and not transactional, continued to thrive by building on community knowledge and relationships. At Virtuoso, we never believed that all the baby boomers—who invented the personal chef, personal shopper, personal everything—would suddenly start doing travel DIY. What’s happened generally in the profession is that the successful luxury-travel advisor needs more of a right-brain attitude, asking the customer open-ended questions. In a world where there are an endless number of answers, what really impresses a well-educated, sophisticated customer isn’t that you have answers; it’s that you ask great questions. The minute you ask a question they hadn’t thought about, it stops them in their tracks. Any good travel advisor today will add value in three separate areas: before the trip, during the trip, and after the trip. The number-one thing that high-net-worth consumers tell us differentiates a trusted travel advisor from a transactional travel agent is the quality and consistency of post-trip debriefs. That debrief is when it becomes a learning relationship. If customers can see that those debriefs add value to the next trip, and the one after that, it makes them very “sticky.” A lot of our sophisticated travelers are planning big milestone trips three, four, or five years in advance. And a lot of our advisors are saying, “Let’s not work at one trip at a time. Let’s have a strategy.” Why would you have a professional collaborator who helps you make a proactive, conscious plan to optimize your financial assets but not have a professional collaborator who helps you plan how to optimize your most valuable, nonrenewable asset—your free leisure time? If you lose money, you can make it back. If you lose time, you’ll never get it back. Motivating the customer to think that way can drive a huge amount of value. Comments and opinions expressed by interviewees are their own and do not represent or reflect the opinions, policies, or positions of McKinsey & Company or have its endorsement.

Many luxury travelers now want 24/7 concierges who will maintain a relationship with them across their journeys. These travelers want the benefits of large online networks when making travel arrangements, but they also want agents who respond quickly, know their names, and understand how they like to travel. Subscription-based travel clubs that meet all these needs by giving paying members access to an exclusive, carefully curated selection of properties, activities, and agency services have become an attractive solution, especially for younger luxury travelers.

Perception ten: The luxury market has mastered wellness

The traditional image of luxury is heavy on indulgence: sumptuous dining, an atmosphere of ease, and copious opportunities to splurge. In fact, many luxury travelers are interested in a slightly different vibe. Wellness is a major, ongoing, global trend, and luxury tourists are increasingly looking for ways to put their health—both mental and physical—at the center of their travels.

Mainstream luxury providers still mostly seem to think that wellness equals spas. In fact, luxury consumers now expect a much more holistic array of offerings—including fitness classes (88 percent of our survey respondents say fitness is important on leisure trips), health-focused menus, on-site antiaging doctors, mindfulness programming, and more. Luxury travelers also want to learn about the health and wellness practices that are specific to the places they’re visiting, whether it’s a Mediterranean diet in Italy or Ayurvedic medicine in India. For these travelers, wellness means a healthy holiday they return from feeling fresher and fully rejuvenated. It doesn’t mean one massage scheduled at an odd time because of a packed travel schedule and limited spa staff.

A new crop of wellness hotels is emerging to meet the new shape of demand. For example, the SHA Wellness Clinic, which has locations in Spain and Mexico, offers programming that addresses guests’ health goals—such as longevity, detoxing, weight management, and rebalancing. Guests can book private consultations for personalized food plans and targeted brain-health treatments. In Hawaii, 1 Hotel Hanalei Bay is a property entirely focused on transformative wellness, offering multiday retreats, custom itineraries, medical treatments, an 18,000-square-foot wellness spa, and a 10,000-square-foot fitness space.

The new generation of wellness hotels is likely just scratching the surface in terms of meeting demand volume. Luxury hotels might have a “white space” opportunity to engage with the new type of wellness traveler by making them feel that wellness is integrated into every part of a stay. Meanwhile, many hotels could likely step up their game even when it comes to traditional spa experiences. Spa booking should be easy, availability should be rampant, and flexibility should be constant if the visitor is to feel a true sense of relaxation.

The luxury-traveler population is evolving. Travel players should ensure they have a full and accurate understanding of today’s luxury traveler by critically reexamining long-standing assumptions.