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Your next luxury vacation will cost even more.
CNBC Travel reports that despite falling inflation, prices in the luxury travel industry continue to rise post-COVID-19. His average daily rate across the industry peaked this year, rising 70% over 2019, according to Virtuoso data. But these types of special trips are only going to get more expensive, thanks to soaring labor costs, continued supply chain disruptions due to the pandemic, and the ability of wealthy travelers to pay rising prices.
“They want something special…and these companies are going to take advantage of that in any way they can,” Henry Harteveldt, president of Atmosphere Research Group, told CNBC Travel. .
According to Virtuoso representatives, the upcoming July will earn the highest interest rate, an 85% increase from July 2019. Hotels aren't the only ones reporting price hikes. The cost and demand for rail travel and other premium experiences are also rising.
In fact, prices for Accor's upcoming “La Dolce Vita Orient Express” itineraries have increased by 75% in just 16 months, the newspaper reported. For context, the price for an overnight trip starting in Italy in spring 2025 has jumped from 2,000 euros (about $2,168) to a whopping 3,500 euros (about $3,776) per person as of last month. Similarly, CNBC Travel found that Belmond's Venice Simplon Orient Express price rose to £7,060 ($8,925) in March.
Still, the wealthy aren't letting costs get in the way of their plans. “The luxury boom continues even as economic activity remains flat in some major developed markets,” Dave Goodger, managing director of Tourism Economics, told CNBC Travel. “This is because some travelers have purchased for more luxurious experiences. This is also because income and wealth levels, including accumulated savings, continue to be healthy among higher net worth households. It reflects the facts.”
According to Virtuoso's 2024 Luxe Report, more than half of advisors surveyed by the platform expect travel demand and value per trip to continue to grow this year. So where do wealthy travelers go? After all, it turns out they're all about exploring far-flung destinations and lesser-visited places like Japan, Iceland, Norway, Croatia, Antarctica, and Portugal, to name a few. I did. Of course, as Paris prepares to host the Summer Olympics, the City of Lights is also at the top of many people's lists.
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Abby Montanez
Abigail Montanez is a Robb Report staff writer. She has been involved in both print and digital publishing for over five years, covering all areas including real estate, entertainment, food and travel, and more.
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