When deciding how, when and where to take a vacation, wealthier consumers are increasingly seeking an “experience,” rather than a particular location. And that bodes well for Las Vegas, one of the nation’s most popular destinations for high-end travelers.
These findings are among the highlights of the 10th edition of the “High Net Worth Report” released today by The Private Bank by Nevada State Bank. This month’s report focused on consumer travel trends. While travelers at all income levels – including higher-end consumers – reported spending less on vacations during the Great Recession, the recovery is witnessing both increased spending and changing spending patterns.
Like the balance of the economy, the luxury travel sector appears to be evolving. High-net worth clientele who previously cut back on travel have returned in force, but the bank’s report found they are thinking and spending differently. Likewise, luxury brands in the hospitality industry have been forced to re-evaluate how to attract high-end consumers.
Highlights from the report include the following:
- Higher-end travelers are becoming more “experience-oriented” rather than “destination-oriented.” An annual survey of elite travel agents indicated that multi-generational travel was the single largest trend reported last year. With time and disposable income on their hands, older travelers are increasingly taking their grown children and grandchildren along on their trips, necessitating that the travel experience appeal to people of different ages.
- River cruises and adventure trips have seen large upswings in popularity in recent years. A river cruise, in particular, tends to be a more expensive and exclusive type of vacation as the ships used on rivers carry fewer than 200 passengers on average. This segment of the cruise market has grown 10 percent annually for the past five years, with vacation packages typically costing between $2,000 and $4,000 per person.
- With a keen interest in pursuing the most unique experience possible, luxury travelers are gravitating back to travel agents to obtain personally tailored advice, making them less apt to use online booking tools. Some of this is attributable to the age demographics of the wealthy, but overall, the shift appears consistent with the broader trend towards seeking out inimitable journeys.
“Las Vegas happens to be the second most popular U.S. destination for high-net worth travelers. As many of our high-net worth households are involved either directly or indirectly with Nevada’s hospitality industry, these findings are of multi-faceted interest,” said Russell Price, executive vice president of The Private Bank by Nevada State Bank. “When seeking out a unique experience, the luxury consumer is expected to continue to demand more out of their travels than a five-star hotel room. Whether that translates to a concert or fight week in Las Vegas, a river cruise in Europe or an adventure trip through the Amazon, the high-end consumer increasingly desires an experience that will be memorable and life-affirming.”
The Private Bank publishes the “High Net Worth Report” monthly. Briefings are available on Nevada State Bank’s website at www.nsbank.com/HNWreport or by contacting The Private Bank directly at 702.855.4812.
About The Private Bank by Nevada State Bank (@NSBPrivateBank)
The Private Bank by Nevada State Bank provides a full range of personalized financial servicesfor high net worth and high-income clients, including deposit and lending services and wealth management planning. The Private Bank by Nevada State Bank is an unincorporated division of Nevada State Bank that provides specialized banking services to significant net-worth clients. Nevada State Bank is a full-service retail bank that has been chartered by the state of Nevada and is insured by the FDIC.
About Nevada State Bank (@NevadaStateBank)
Nevada State Bank, with assets of more than $4.0 billion, is the largest state-chartered bank in Nevada. A full-service bank with 50 branches statewide, Nevada State Bank offers a complete range of consumer, private and business banking services. It is a subsidiary of Salt Lake City-based Zions Bancorporation (Nasdaq: ZION), one of the nation’s premier financial services companies. With affiliates in 10 Western and Southwestern states, 140-year old Zions Bancorporation has assets of $54.9 billion. For more information on Nevada State Bank call 702.383.0009 or access www.nsbank.com.