On Location: “Silver bullet” wellness & “coolcations”: Virtuoso shares 2024’s travel trends

Virtuoso put a spotlight on the latest trends in luxury travel at its conference in Las Vegas on Monday (Aug 12), sharing key insights based on data collected from its network of some 20,000 travel advisors spanning 58 countries.

“We have demand for travel that is incredibly high, and we have travellers who can afford it or who will afford it,” said Misty Belles, vice-president of global public relations at Virtuoso, addressing a conference room full of journalists at the Aria hotel, where PAX is reporting on location this week.

It’s been said that the pandemic showed the value of travel advisors. Now that travel has roared back, the demand for a professional who can get their clients access to experiences remains, Belles said. Especially in today’s age of artificial intelligence (AI).

READ MORE: On Location - Record growth & the “Swift lift” – the latest in luxury travel shines at Virtuoso Travel Week in Vegas

“As AI becomes more ubiquitous, having that trusted relationship with an actual human becomes more valuable than ever,” Belles said, noting that Virtuoso has seen a 76 per cent increase in the number of people looking for an advisor through its website this year.

2023 vs. 2024

Belles went on to outline travel trends that Virtuoso is tracking this year. Traveller behaviors and intentions have shifted.

While 2023 was about visiting hot spots, this year sees a rise in “coolcations.” Last year was about travellers returning to Japan, now it’s about returning to greater Asia. Self-care was a behavioural trend in 2023. That has now changed to “self-preservation" (because everything is coming at everyone all at once, a reoccurring theme at this year's Virtuoso Travel Week).

The popular term “revenge travel” is out. Now, it’s about “revelry travel” – the act of people travelling “in a much more joyful way,” Belles said.

Finally, last year’s intention to “travel at any cost” has shifted to “travel at all cost,” which suggests affluent travellers are determined to have the experience they want, regardless of the price.

This trend may explain why Virtuoso advisors are doing so well.

Virtuoso’s team shared a sales update at Virtuoso Travel Week’s opening session on Sunday (Aug. 11), saying that its numbers are pacing 213 per cent over 2019 levels (higher than the leisure travel industry at large, which sits at 126 per cent over 2019, according to data from Tourism Economics).

From cruises to tours, all sectors appear to be selling. Virtuoso’s hotel sales are a little lower than they were coming out of COVID, but the average daily rates (ADRs) remain the same for the first half of this year.

Strong festive season ahead

Virtuoso’s festive season ADRs are expected to hit a new record, however, with projections estimating a global network average of $2,000.

Will festive travel pricing go down in 2024? Virtuoso says rates remain high at favourite festive destinations.

Virtuoso-approved hotels in the Caribbean and Mexico, for example, are seeing nightly rate increases for the holiday season. Hawai’i is one destination where rates have dropped slightly as other global destinations capture the market’s interest.

Morocco, where hotel rates are up 59 per cent, is doing “incredibly well,” Belles said. “Our average daily rate there is more than $4,600 a night.” Indonesia, too, is seeing an increase in ADRs.

With the U.S. election coming up, it’s expected that travel will decrease, Belles shared.

“It does just a little bit. [Travel] doesn’t go away. It just means the growth isn’t as strong,” she said.

Where are people going?

Belles went on to share a snapshot of where luxury travellers are going this year.

Virtuoso’s data almost always puts the United States at number one, followed by Italy.

What’s interesting, though, are the destinations that aren’t on this year’s list. Last year, Virtuoso named Greece, Ireland and South Africa as trending destinations for the affluent. This year, those places have been replaced by St. Barts, Portugal and Japan.

Canada, too, is also having a moment, seeing a 168 per cent increase in bookings over last year, Virtuoso reports.

Fall travel trends

Looking at this year’s fall travel season, which is also experiencing increases over 2023, Canadian luxury travellers will be heading to the U.S., Italy, France, Japan and places within Canada, Virtuoso reports.

Paris is always a top city for fall travel – at Virtuoso, bookings are up 90 per cent in terms of bookings, while the rates are up by 12 per cent. Other top cities for fall travel include London, New York, Rome and Tokyo, Virtuoso says.

But luxury travel isn’t always about paying the highest price. Virtuoso has also identified “value cities” where hotel rates have gone down.

This list includes Taormina, where rates have dropped by about 22 per cent “because all the White Lotus fans are now looking at Thailand,” Belles said.

(Sicily’s Taormina, notably, was the setting for Season 2 of the popular TV series, which will set in Thailand for season 3).

Napa’s rates have come down by 19 per cent, while Amsterdam rates have dropped by 11 per cent, Virtuoso says.

The top destinations for the festive season include Mexico, Hawai’i, Anguilla, Costa Rica and St. Barts, the numbers show.

And there are destinations on the rise this winter, such as Saint Lucia, which is seeing a whopping 305 per cent increase, the Dominican Republic (up 105 per cent) and Grenada (up 84 per cent).

Hot vs. cold

One trend Virtuoso has been tracking is the shift to cooler climates during off-season periods.

Bookings to “cool destinations” for the June, July and August period are up by 44 per cent this summer, while warm destinations are seeing a slight decrease of .5 per cent.

Destinations like Canada (up 40 per cent), Finland (up 150 per cent), Sweden (up 17 per cent), Sweden (up 17 per cent), Norway (up 89 per cent) and Iceland (up 62 per cent) are all benefitting from the “coolcation” trend.

Popular warm destinations for summer, like France, Italy and Greece, are all down in Virtuoso’s network, Belles noted. However, those destinations still outsell cooler destinations overall.

Maui’s festive rebound

Maui, which suffered from deadly wildfires in August last year, was also highlighted at Monday’s press conference.

For the first half of this year, Virtuoso saw the Hawaiian island slightly rebound in bookings, noting a four per cent increase for the January to June 2024 period versus 2023.

While some fire-affected areas remain closed to the public, several restaurants, businesses and activities around Lahaina are open and welcoming visitors.

The recovery numbers in Lahaina trails Wailea by seven per cent, Virtuoso says. Maui’s festive season is looking positive, however, with Virtuoso reporting a 66 per cent increase in bookings over 2023.

Alternates to the alternates

Virtuoso’s data looks at sustainability and how world events can impact travel decisions.

In a 2024 survey conducted by the consortium, 50 per cent of Virtuoso travellers said global developments have encouraged them to travel more responsibly, citing geopolitical conflicts, overtourism and the effects of climate change.

Alternative destinations are also being advised. Instead of sending clients to popular Italy, Virtuoso advisors have been recommending Slovenia, Portugal and Croatia.

But even some of these destinations have become popular, which has led to alternates to the alternates.

Instead of Croatia, for example, advisors have recommended Montenegro, a Balkan country on the Adriatic coastline. And instead of Costa Rica, the suggestion has been to visit Guatemala.

“Silver bullet” wellness

As for wellness, Virtuoso is tracking “silver bullet wellness,” a sub-trend for specific “cures,” such as relaxations/disconnection, mental resets and the desire to disconnect from technology.

Newly-embraced behaviors, experienced on a trip, that travellers want to take home with them, Belles explained.  

Virtuoso is also looking at “mood boarding,” which identifies how people want to feel while they travel versus what they want to do while they’re there.

Some key emotional drivers include curiosity and exploration, awe and wonder of nature, joy and happiness and anticipation and excitement.

Female solo travel

“Wander women” – female solo travellers – is also trending high in Virtuoso’s network.

The consortium reports that 71 per cent of its solo travellers are women. Within this group, 47 per cent are divorced, separated or widowed; 40 per cent seek a sense of belonging; while 27 per cent are going on expeditions.

“Legacy” travel & beta babies

One group to watch in the years ahead are “legacy” travellers. Next year, it’s possible that seven different generations will be travelling at the same time, Belles explained.

“It’s going to happen in 2025 when Gen Z starts to have babies,” she said. “If we say that Gen Z was born with a passport in hand, these are the babies who are going to be born on a plane and going somewhere.”

Virtuoso’s data shows that 34 per cent of Gen Xers plan to travel with their adult Gen-Z children in the next year. Gen Zs are also planning trips with their children under 18.

Virtuoso also Gen Z parents are more likely to rely on a travel advisor than then Gen Y counterparts.

Taylor Swift vs Olympics

One trend Virtuoso has highlighted is the “Swift lift,” which refers to the economic boost communities experience whenever singer Taylor Swift’s popular “Eras Tour” rolls through town.

According to Virtuoso, Taylor Swift’s concert tour has resulted in a 51 per cent ADR increase and a 139 per cent increase in booking volume.

Belles compared Taylor Swift’s Paris concerts to the Summer Olympics, noting that the pop star dominated the total number of bookings to the City of Light, but the ADR was driven by the Olympics.

All eyes on ultraluxe travel

Ultraluxe travel is also having a moment. Virtuoso says 89 per cent of its advisors have seen an uptick in requests for exclusive services (like VIP transportation) and/or private experiences.

The leadings types of ultraluxe travel at Virtuoso include expedition cruises, exotic locations (such as Fiji, the Maldives and Thailand) and African safaris.

Celebrations, passion-point experiences (sports, concerts, festivals) and wanderlust ‘trips of a lifetime” are driving this segment.

Luxury cruising

In the world of luxury cruising, a segment that shows no signs of slowing down, yacht cruising is up 52 per cent, river cruising is up 29 per cent, expedition is up 19 per cent and ocean cruising is up 15 per cent, Virtuoso reports.

Artificial intelligence: opportunity or threat?

Finally, Virtuoso surveyed its agency owners and managers to get their opinion on artificial intelligence and its role in travel, asking them whether they view the new tech as an opportunity or threat.

In most regions around the world, including Canada, the majority of Virtuoso advisors cited AI as an opportunity that should be embraced.

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