The upcoming luxury travel landscape is poised to deliver even more extravagant experiences, albeit with a heftier price tag. Despite lower inflation rates, the luxury travel industry has witnessed a significant surge in costs post-Covid, with average daily rates soaring to unprecedented levels. Data from Virtuoso indicates that rates have spiked by a staggering 70 percent compared to 2019, showcasing an ongoing trend of escalating expenses within the sector. Contributing factors include a surge in labor costs, supply chain disruptions, and the willingness of affluent travelers to pay premium prices for exclusive experiences.
According to Henry Harteveldt, president of Atmosphere Research Group, luxury travel companies are keen to capitalize on the demand for exclusive experiences. This drive for exclusivity has driven prices to new heights, with July 2025 slated to feature the highest rates, marking an 85 percent increase from July 2019. The surge in costs isn’t confined to hotels alone; train trips and other elevated experiences have also witnessed a sharp escalation in both pricing and demand.
For instance, Accor’s La Dolce Vita Orient-Express itinerary saw prices surge by 75 percent within just 16 months, with rates for the one-night journey skyrocketing from 2,000 euros to 3,500 euros per person. Similarly, Belmond’s Venice Simplon-Orient-Express reported rates reaching £7,060 ($8,925) in March, reflecting a significant increase in luxury travel costs. Despite these soaring expenses, affluent individuals remain undeterred, with many prioritizing luxury experiences and being willing to pay a premium for them.
Dave Goodger, managing director at Tourism Economics, notes that the luxury travel boom persists despite economic challenges in some markets, driven by a desire among travelers to indulge in upscale experiences. Additionally, healthy income and wealth levels among higher net worth households have further fueled the demand for luxury travel. Virtuoso’s 2024 Luxe Report indicates that travel advisors anticipate continued growth in travel demand and expenditure this year, with affluent travelers showing a preference for exploring far-flung destinations and less-visited locales such as Japan, Iceland, Norway, and Croatia.
