Luxury holidays costing more than £78,000 have surged by 68% in the past two years, according to new data from high-end villa rental agency Top Villas, offering a glimpse into the travel preferences of the ultra-wealthy.
The average booking value has reached £120,000, covering both accommodation and premium services, as affluent travellers increasingly seek personalised experiences.
"This illustrates a remarkable shift in the popularity of luxury stays and six-figure getaways, with significantly more travellers willing to spare no expense when it comes to having extraordinary and exclusive holidays, now more than ever," says James Mannings, CEO and co-founder of Top Villas.
The surge reflects changing preferences among wealthy travellers, who Mannings says are constantly raising the bar: "People now want the best of the best. It's about going the extra mile to make each holiday truly special, and travellers are seeking new ways to enhance their trips with exciting experiences and services, and are opting for ultra-luxe destinations and extravagant stays, with each of their getaways topping the last."
Must-have amenities for these luxury stays typically include fully-staffed accommodation with private chefs, housekeepers, and personal butlers. "Having a team of people around the clock who can take the weight of having to complete mundane, day-to-day tasks off of your shoulders means that your valuable time is not eaten up during a getaway," Mannings explains.
The trend extends to wellness services, with private fitness instructors and in-house spa treatments becoming standard requests. Pool attendants are increasingly being integrated into home staff teams, while exclusive experiences have seen a 100% increase in demand over the past two years.
These bespoke experiences range from securing coveted restaurant reservations to arranging private yacht charters and dining experiences with renowned chefs. Mannings cites securing New Year's Eve bookings at Miami's exclusive KiKi on the River as an example of their concierge capabilities.
VIP experiences are also seeing significant growth, with Disney World tours proving particularly popular. "We've seen a 40% increase in bookings for these VIP passes this year compared to 2023, and these tours can cost upwards US$6,500 per day," says Mannings.
Some requests venture into more unusual territory. The company has organised everything from private firework cruises to petting zoos for younger guests, and arranged thousands of fresh flowers for in-villa marriage proposals.
Security services have emerged as another essential requirement, with wealthy travellers increasingly requesting both property guards and personal chauffeurs to ensure privacy and safety throughout their stay.
"Luxury clients want to have maximum peace of mind during their getaways knowing that they're safe," Mannings notes, adding that guards often chaperone guests to various locations, "whether that be amusement parks, shopping malls, or beaches."
The company, which operates in more than 150 destinations worldwide, attributes the surge in ultra-luxury bookings to travellers seeking increasingly distinctive and exclusive holiday experiences.
New York leads the Wealth-X Global Luxury City Index with more wealthy individuals than any other city in the world – and the highest number of five-star hotels and luxury casinos.
These findings form part of the Wealth-X Global Luxury Outlook 2020: A World of Changing Preferences report, which explores the relationship between wealth growth and the development of the luxury goods and services industry, and how this relationship is changing in the face of Covid-19 (think increased premiums on privacy and flexibility, such as the growing trend for private jet travel).
Thanks to New York's strong luxury retail footprint and abundance of luxury lifestyle opportunities, its wealthy population is forecast to grow steadily over the next five years, in spite of political and economic uncertainty in the US.
However, it's Asia that dominates the full index (below) with eight of the top 15 cities located within the region, including Tokyo in second place, followed by Hong Kong.
The huge expansion of the luxury sector in China and other emerging markets over the past decade shows the inextricable relationship between the demand for luxury items and the trajectory of wealth.
In fact, the Asia region is now home to more wealthy individuals than Europe, though North America (led by the US) still remains the dominant region for global wealth, accounting for almost 40 per cent of all very high-net worth individuals (VHNWI, valued at US$5 million to US$30 million) and ultra high-net worth individuals (UHNWI valued at US$30+ million).
In order to understand how ultra-wealthy populations view and consume luxury around the world, the Global Luxury City Index examines "high" and "medium" affinity for luxury across two tiers of wealth: US$30 million to US$100 million in net worth and US$100+ million.
It also provides a detailed analysis of the wealthy population’s affinity for luxury based on ownership of "major" luxury assets, such as a private jet, yacht or art collection, and/or ownership of "other" luxury assets, such as real-estate, antiques and prestige cars.
The insight into how the level of propensity to own luxury assets varies among cities and is graded according to certain key characteristics such as wealth source, gender and age.
The biggest luxury spenders? Ultra-wealthy people between the ages of 50 and 70, who also account for the largest group size.
Another interesting variable addressed in the report is whether the source of a person’s wealth affects their affinity for luxury.
Indeed, UHNW individuals with inherited wealth are more likely to show a high affinity for luxury. This could reflect two forces at work. First, many of those with self-made wealth may still be devoting much of their time to running their businesses, and second, inheritance tends to be a more common source of wealth among women who show a greater propensity for a high affinity for luxury than men.
While the global luxury market has ballooned in size and diversity over the past 15 years – expanding from an estimated €147 billion in 2005 to €1.3 trillion in 2019 – the coronavirus pandemic has brought years of industry growth to a halt.
The ultra wealthy have continued to spend on luxury during 2020, however, they have been doing so differently. Luxury services are increasingly being offered to the wealthy in their own homes, real-estate agents are seeing demand spiral for high-end properties that are closer to nature and offer security and safety, and interest has grown in securing additional passports for – or residency of – countries considered more secure.
Sienna Charles CEO Jaclyn Sienna India, says: “The wealthy’s mindset around what luxury is has changed – their priorities have shifted towards their families. Luxury now includes a second passport, access to healthcare and the freedom to go when and where they feel safe and secure.”
In the process of adjusting to this new normal, the wealthy’s preferences and demands are altering in ways that will influence on the luxury industry for many years to come.
[dropcap size=big]T[/dropcap]he 2015 Wealth Report from global property consultancy Knight Frank gives an in-depth look into who the super rich really are – and what they are spending their money on.
Last year, at the top of the wealth pyramid, 53 new dollar-billionaires were created, making 1,844 in total – a relatively tiny club compared with 17,808,831 dollar-millionaires across the planet.
About 15 people a day joined the ranks of the "ultra-high-net-worth individuals (UHNWIs worth over US$30 million), totalling 172,850. The number of "centa-millionaires" (those with assets worth more than US$100 million) was 38,280.
The number of super rich people adds up to just over 18 million – with a joint wealth of US$20.8 trillion. Out of a global population of more than seven billion, that's a handful of people with a serious amount of wealth.
The Wealth Report’s annual Attitudes Survey is based on insights from almost 500 private bankers and wealth advisors, and reflects the attitudes of their ultra-wealthy clients.
It revealed that 2014 was "a good year" for the wealthy. "The vast majority saw their net worth increase, and most of the respondents said this trend would continue in 2015".
However, 21 per cent of respondents expected their clients’ philanthropic activities to increase; in this year’s survey the figure was 22 per cent, with three-quarters predicting they would remain the same.
When asked if younger UHNWIs have a different attitude to wealth than their parents’ generation, 45 per cent said they were more philanthropic. Andrew Porter, director of research for Camden Wealth, said: "Millennials take seriously the notion of stewardship and social responsibility."
At the same time, two-thirds agreed they spent more on luxury goods. According to Ledbury Research, developing trends in the top-end goods sector show rising interest in wearable tech (Ralph Lauren, for example, is developing smart Polo Tech clothing that syncs with smartphones).
The second-hand luxury market is also booming, as are coloured diamonds and women's watches, while Scotch whisky (especially in Asia) and super-yachts are experiencing an uptick.
The report also noted what the most popular investments are: "Art is the luxury asset where interest is rising the most – perhaps unsurprising given its accessibility – followed by watches, wine and classic cars."
Saeed Patel, investment analyst for Schroders, said: "The scarcity of luxury assets and their historic ability to hedge against inflation make them an appealing investment proposition – it is always possible to commission a new yacht, but nobody can paint another Monet or build a classic Ferrari."
The use of private jets is "growing steadily", with demand rising most quickly in Asia – 38 per cent of respondents said their clients were increasingly using them for business and leisure. In 2013, the most popular private jet routes were Moscow-Nice, Miami-New York, and New York-LA.
Meanwhile, 37 per cent of respondents said their clients "increased their exposure to property as an investment" in 2014, and 35 per cent "expect that trend to continue in 2015".
When it comes to homes (often second, third or even fourth), demand from Asian UHNWIs for vineyards "remains keen". In Africa (29 per cent) and the Middle East (40 per cent in the UAE) equestrian residencies are more popular, while a ski chalet is most desirable to Europeans (35 per cent) and North Americans (50 per cent).
Globally, tax was highlighted as the main reason UHNWIs would consider moving to a different country, but in Russia, education and political issues were reported as two of the biggest drivers.
Over the next ten years, the number of ultra-high net-worth individuals (UHNWIs) will increase by 34 per cent to almost 231,000, particularly in Africa where the population will increase 59 per cent.
The number of ultra-wealthy people are set to grow 114 per cent in Kazakhstan over the next decade, but out of almost 100 countries, Vietnam's UHNWI population is forecast to increase by a whopping 159 per cent.
By 2024, China is predicted to be the largest economy in the world, boasting almost 15,700 UHNWIs and 338 billionaires.
The ten most important cities to UHNWIs in 2015 are:
However, by 2025, it's expected that New York will take the top spot. In the future, the cities that could rise in importance as places for the wealthy to live are Belgrade, Panama City, Addis Ababa and Yangon.
