Are you more of a luxury traveler or a budget traveler? Modern-day hospitality is not immune to the rapidly evolving trends that are being witnessed across multiple sectors. In fact, it’s safe to say that traveler preferences are shifting swiftly, thereby making distinctions between the concepts of budget and luxury in a renewed way.
While we’re not implying any blurring of boundaries between these two segments, there’s been a major focus shift to a more nuanced and mindful appreciation of what exactly constitutes value. Let’s look at some of these shifting preferences in more detail below.
New-Age Traveler Preferences: How They’re Evolving
Traveler preferences are gradually shifting towards a more nuanced and comprehensive understanding of value, driven by an increasing desire for personalization and experiences. For instance, business and leisure travelers alike are choosing flexible accommodation options such as serviced apartments in Paris that combine comfort, privacy, and curated local experiences. This is something that’s visible not just in the luxury segment, but also for budget travel and accommodations. Would you agree?
Some say budget travel is mostly driven by a value for money and efficiency perspective even today, while luxury still prefers personalized service and exclusivity.
Yet, the common thread between the two segments is a growing traveler shift towards more unique and meaningful experiences, backed by sustainability and technology. Younger generations are also more influenced digitally, and are increasingly looking for value propositions with decent standards. At the same time, millennials are investing more in luxury travel for authentic and life-changing experiences, along with personal growth.
What’s Behind the Change?
There are multiple factors driving the shift, including the following:
- Generational changes– Millennials mostly look for experiences and self-expression. This drives the luxury travel segment. At the same time, Gen Z travelers look for more value, digital integration, and social awareness. They are more open to budget travel experiences.
- Pandemic Impact– The pandemic led to higher focus on safety, privacy, and contactless travel. At the same time, it also generated demand for personalized and exclusive experiences. This has led to more demand for private apartments and villas along with bespoke luxury itineraries or clean, thoughtful, and private budget accommodations.
- Experiential Outlook– Travelers don’t see their accommodation as a mere hotel or place to put up anymore. They are looking at more immersive and wider experiences. Cities rich in culture and lifestyle — such as Amsterdam — have seen this trend firsthand, with travelers choosing serviced apartments in Amsterdam to experience local neighborhoods while enjoying home-like comforts. This includes wellness, unique activities, cultural immersion in the neighborhood, and more.
- Technological Integrations– Both budget and luxury travelers now anticipate high standards of tech-friendliness, including access to various digital services, security features, and maximum convenience.
How New-Age Properties Are Evolving with these Shifts
New-age properties are also evolving rapidly in sync with these industry-wide shifts. Here are some interesting trends that you should note:
- Serviced apartments and hotels are realizing that contemporary luxury is more than sheer opulence. It now includes things like cultural and local immersion, eco-friendliness, authenticity, personalized experiences, and a focus on wellness.
- Budget properties are evolving by offering higher personalization, homely experiences, better security, clean environments, and high-speed internet. There is more focus on satisfying the core or basic needs of guests at lower rates.
- Deluxe and Premium Segments– The market has expanded to accommodate premium stays and also deluxe choices which balance quality and affordability. Hence, a wider range of customers can be accommodated in this case.
- Aspirational Travel Focus– Many luxury travel brands and accommodation providers are targeting the aspirational traveler category. They are offering collaborations or entry-level accommodations that offer access to unique luxury-like experiences within the price of a premium segment. Are you interested? You could be at the right price point. That’s where you’ll understand where we’re going with this!
- Luxury Travel Preferences– More luxury travelers want wellness retreats for mental health and relaxation, while prioritizing serviced apartments, private villas, etc. They also want curated itineraries and services like maids, nannies, etc.
- Cultural Immersion– More people now desire local immersion instead of being isolated in a luxury hotel. Do you want to live like a local in a good neighborhood, talk to people, even invite people over, cook meals, and discover hidden gems in your chosen destinations? It’s all possible now!
The Future Looks Rosy for Serviced Accommodation
The future certainly looks bright for serviced accommodation brands and providers. People today want more privacy and space, which explains the rising demand for apartment rentals and villas. Yet, they also want services and personalized offerings with it in the luxury category. At the same time, budget travelers also desire more value for each booking, something that apartments are best-positioned to ensure. Let’s see how the luxury and budget categories evolve and come closer in the future.
