The Luxury Generations think-piece finds that those born between 1980 and 1994 (Millennials), who currently represent over a tenth of global luxury expenditure, are predicted to outspend affluent Baby Boomers (those born between 1946 and 1964) within the next 15 years.
Affluent Millennials (also known as Generation Y) should be ‘cultivated and engaged’ by the tourism industry as they become the world’s biggest spenders by 2030, says a new VisitScotland paper.
The Luxury Generations think-piece finds that those born between 1980 and 1994 (Millennials), who currently represent over a tenth of global luxury expenditure, are predicted to outspend affluent Baby Boomers (those born between 1946 and 1964) within the next 15 years.
It reveals that as the global economy recovers, the global luxury industry is growing accordingly. It is expected that approximately $110 billion will be spent on luxury travel by High Net-Worth* individuals and their expenditure is forecast to rise by approximately 15% per annum.
A large number of these affluents are based in some of Scotland’s target markets of North America (United States and Canada), Europe (UK, Germany, France), Asia (China, Japan) and Australia.
Authors of the paper, the national tourism organisation’s Insight Department, suggest that the tourism industry should start “cultivating and engaging with Millennials” who are predicted to replace the 50+ demographic as the number one generation in spending power.
According to the report, affluent Millennials view travel as their birthright – taking the most trips of any age group – with travel expenditure increasing by approximately 20% every year as they get older.
For Baby Boomers, travel ranks among their top activities with spend increasing significantly after age 65. Boomers’ travel nowadays also incorporates the entire family.
Chris Greenwood, Senior Tourism Insight Manager at VisitScotland, said: “This Luxury Generations paper gives food for thought on what changes the Scottish tourism industry can expect in luxury consumer travel over the next fifteen years.
“Affluent consumers are an important contribution to the visitor economy, with many of them found in Scotland’s key international target markets. By analysing consumer behavior, the industry can better prepare itself to develop an engaging product which will continue to entice the high-end traveller to Scotland.”
*High Net-Worth generally describes individuals with an annual disposable household income of US$100,000 and
above.
Luxury Generations – Y We Travel
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
