CANNES, France -- After several banner years, is luxury travel's boom finally at the tail end?
Not likely, according to speakers at this year's ILTM Cannes, who pointed to several favorable trends that are expected to fuel further growth.
The sector's resilience is particularly noteworthy given the array of global headwinds it faces. During the Opening Forum on Dec. 2, Merryn Somerset Webb, U.K. editor at large at Bloomberg Wealth, outlined several global long-term challenges, including geopolitical uncertainty, aging populations and falling fertility rates, rising defense spending, deglobalization and mounting government deficits.
"If you're not feeling unsettled, you're not paying attention," she told the audience.
Yet, those challenges appear to be offset by some powerful tailwinds, including dramatic shifts in post-pandemic consumer behavior and a looming wealth transfer of unprecedented scale.
"The greatest transfer of wealth in known history is underway as baby boomers are about to leave behind $72 trillion," Webb said.
This wealth is expected to flow to younger generations, who have already demonstrated a clear preference for spending on luxury experiences over material goods.
"It's all about valuing experiences over stuff, and it's all about young people suddenly feeling that they can pay a premium to travel," Webb added, predicting that "global travel, at least in aggregate, is expected to grow at double the rate of GDP," or around 8% to 9% over the next 10 years.
How luxury hotels see things
Major hotel companies are already positioning themselves to capitalize on these trends.
Alex Schellenberger, senior vice president of brand for Mandarin Oriental Hotel Group, echoed Webb's view on the wealth transfer's impact, telling the media here that Mandarin Oriental is keeping a close eye on this emerging customer segment that it's dubbed "Trust Fund Young-Gen."
"It's all about how we win with that younger demographic," Schellenberger said. "Those people are mostly into money-can't-buy experiences. It's not enough to just have the best designed room and the best facilities."
At Marriott International, shifting demographics are similarly reshaping the company's luxury strategy. Tina Edmundson, president of luxury for Marriott International, told reporters that millennials and Gen Zers currently make up 45% of luxury sales, with that number expected to grow to 80% by 2030.
With both these generations reporting outsize interest in adventure travel and connecting with the great outdoors, Edmundson said the company has ramped up its focus on tented lodges and camps, particularly in Africa.
Marriott is prioritizing brand collaborations to engage these younger luxury travelers. Edmundson cited recent examples like complimentary helicopter transfers via Blade for suite bookings at certain New York properties and shopping experiences in partnership with Saks Fifth Avenue.
"Collaborations, we find, are extremely effective in capturing younger audiences," she said.
Marriott is also expanding its view of who constitutes a luxury consumer.
"While many luxury brands have focused on serving the high net worth customers, there's really this large and expanding base of aspiring luxury travelers, and they are increasingly willing to spend a larger share of their wallet on upscale travel options," said Edmundson, who cited a McKinsey report stating that 35% of luxury travelers have a net worth under $1 million.
"Many of these travelers are 40 years old or less," she said. "They don't own their own homes, but they are willing to spend like millionaires."
The luxury travel sector's momentum was also evident when discussing recent sales metrics. Matthew Upchurch, CEO of Virtuoso, said that the network's $35 billion in annual sales is up 14% from last year's record performance.
The growth is particularly pronounced at the ultrahigh end, with Upchurch adding that bookings for trips costing $50,000 or more are up 42%.
Likewise, Lauren Alba, vice president of global marketing and communications for The Leading Hotels of the World, said Leading Hotels has seen 45 consecutive months of revenue growth across its portfolio, with bookings for 2025 coming in 15% higher than the same time period heading into 2024.
"We actually accelerated our performance in the third and fourth quarter of 2024, which is not the norm," Alba added.
Luxury's bull run comes as ILTM Cannes said it drew a record crowd of roughly 10,000 attendees, making it the largest show in the event's 23-year history, with attendance up almost 12% from 2023.
"In my lifetime, in this industry, every single major disruption seems to make travel stronger," Upchurch said. "The value of travel in people's lives has actually been strengthened by the fact that we go through these topsy-turvy experiences."