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How Brands Can Elevate Luxury, Travel Retail Experiences

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The travel retail market is predicted to reach $150.38 billion in 2028.

That figure seems almost unfathomable until we compare the growth to what we saw in the travel retail space from 2023 to 2024: a 14.1% increase, $79.2 billion to $90.4 billion, respectively. Even in the recovery stages from COVID-related travel restrictions — and Chinese travelers not traveling as frequently as they once did — the travel industry is primed for a growth spurt.

Experts attribute the exponential surge to the rising demand for personalized, luxury shopping experiences — customers looking to “make memories for years to come,” according to Israel Assa , Global President, Travel Retail of Estee Lauder Companies.

Despite growing global interest in travel retail, brands face frustrations with high employee turnover , a disconnect from frontline teams , and breakneck competition .

Employee Retention on the “Sixth Continent”

L’Oreal calls the travel retail environment the Sixth Continent in part due to its monumental annual sales, but mostly for the diverse customer base that has its own set of styles, budgets, and needs.

Located in airport terminals, border shops, and cruise and ferry landings, the industry has seen a recent surge in international travel and subsequent international shoppers. Thus, frontline travel retail employees are expected to meet a wide array of customer expectations. With billions of international travelers that pass through these spaces each year, luxury brands must equip employees with the tools necessary to create memorable, succinct brand experiences.

High employee turnover is a given, of course, not just in travel retail spaces. However, with high-end stores in remote, international locations, it’s vital to have consistent onboarding and training strategies in place. With these characteristically small teams, major turnover can feel catastrophic. 

The brand experience is set by headquarters, but executed by your frontline travel retail employees. Empower them to confidently create consistent and professional interactions with each customer. Setting learning incentives in place allows frontline workers to take ownership of their employment opportunity with your brand.

The Data Disconnect

Large international brands are utilizing the travel retail sector to strategically introduce product launches, promotional marketing, and exclusive experiences. Often, these products may not yet be available in local stores.

“With the development of low-cost airlines and the growing purchasing power of the world’s middle classes, more and more people are traveling by plane, and over the past 40 years, retail areas have grown along with the airports,” writes the L’Oreal Groupe . “The success of these airport outlets is such that L’Oréal sells a number of products exclusively in ‘aeromalls’.”

It’s imperative that employees have access to updated data to support the ever-changing products, goals, and quotas set by headquarters. 

However, with luxury brands occupying travel retail space in over 150 countries, the physical location environments vary drastically. Challenges can look like POS disconnections to network, spotty WiFi, and outdated data.

Both the frontline employee and the brand suffer when they don’t have consistent access to data. Consider streamlining your data and analytics to a platform that has reliable “offline” features, like SimpliField.

Relying on Field Teams

International brands in the wholesale travel retail space also have hundreds of individuals working on flexible field teams to bolster ongoing work.

Field teams performing store visits on these duty free stores  are tasked with specific action items to increase operational excellence and proper merchandising.

With these routine checks happening on a cyclical basis, it's imperative that field teams make the most of their visits by consolidating valuable feedback for HQ. Ensure they're equipped with the tools to do this quickly and efficiently.

Miles of Competition

The window of time between travelers going through TSA and boarding their next flight is familiarly known in airports as “Golden Hour.” 

Store after store is packed into limited real estate of airport walkways. Luxury stores compete to engage with new and seasoned customers to deliver a unique brand experience. It’s congested, it’s stressful, and it’s imperative to stand out.

49.6% of all travel retail market share is claimed by fragrance and cosmetics. Especially in the beauty sector, it’s difficult to make a lasting, positive impression.

Leading beauty and cosmetic brands have embraced this challenge — introducing innovative ways to catch the eye of new customers with fresh advertising and unique purchase experiences. We’ve seen a significant rise in contactless stores and vending kiosks, delivery robots and automation, and immersive shopping.

With the goal of aligning the luxury experience with the travel experience, brands must master frontline employees completing daily tasks with excellence while adding attention-earning elements.

Key Takeaways

• Streamline frontline task management and communication. This improves operational excellence and overall brand consistency for the growing travel retail customer base.
• Empower new hires and long term employees to align each customer interaction with brand standards. Cater to dwindling attention spans by training your teams with bite-sized content, e.g. videos, surveys, documents, and checklists.
• Switch your employee communication and data platform to one with offline capabilities. HQ-frontline disconnect in travel retail teams can cause missed sales, missed expectations, and ongoing frustration. 

SimpliField, Designed to Bridge the Disconnect

SimpliField’s platform was honed to meet the needs of luxury teams around the world — allowing brands to operate with visibility and excellence. Our platform gives headquarters and frontline teams the ability to communicate easily, even amongst challenges like network issues, employee turnover, and keeping brand consistency. Let us show you how simple it is to integrate SimpliField into your workflow. SimpliField is the best tool to help your frontline employees save time and spend it more on customers.

Book a demo today , or learn more about our capabilities .

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Travel Retail: a new showcase for Luxury

Registering global growth of 8% a year, travel retail is taking off. The promising channel encompasses airport stores and downtown galleries that offer tourists duty free shopping. Séverine Lanthier, Travel Retail Director at Kering and Gucci, talks about the Group’s plans to tap the potential of this strategic market.

What are the big trends on the travel retail market?

The market is obviously linked to trends in air traffic, which is steadily rising. In 2017, over 3.5 billion people worldwide travelled by plane, 7% more than in 2016, with an 8.5% increase in international travelers. As their numbers grow, these travelers are also consuming more. At the global level, airport trade is growing at an average of 7% annually. Although this statistic admittedly includes all product categories in fragrances and cosmetics, alcohol, tobacco and so on, the luxury segment alone is expanding by about 6%. This trend looks set to become more pronounced given the overall increase in demand for these products. With millennials now making up half of all airport consumers, traveler profiles are changing too, which is leading to new practices and expectations.

What are travelers’ consumption habits and how are they changing?

Travelers don’t have much time. In downtown duty-free shops, customers on an organized tour might have no more than 45 minutes to spend. The same is true in airports: assuming that the average passenger arrives an hour and a half before their flight takes off, once the formalities are taken care of, they have a maximum of 30 minutes to shop. These consumers also have very specific needs. They want things that are easy to transport, especially if they are taking their purchase in the cabin. They may be looking for gifts and often buy on a whim. Brands are adapting to this, offering fragrances in 100 ml bottles, for example, which fit more easily in a travel bag. Today, luxury is still last in the list of priorities, but the gap is closing. Travelers want first and foremost to catch their flight, then possibly to pick up cheap tobacco, alcohol or cosmetics products. Premium products rank further down the order of importance. Easily transportable and sure to be a hit when offered as a gift, high-end accessories are products that work beautifully with travel retail. In the past, luxury brands approached the travel retail segment by offering entry-level goods to cater to consumers looking to get cut-price name brand products. Now, though, customers are keen to get the best of the luxury experience, even when travelling, including a sophisticated environment, an impeccable welcome, a broad array of products and customizable goods. As a result, airports are transforming themselves into luxury malls.

How has Kering organized itself to address this market?

Kering set up a specific Group-level organization in late 2016, although naturally our Houses already had their own structures. We work with all the Group brands. The goal is to be able to speak to the Houses but also to the main travel retail players, which are not necessarily familiar with luxury issues. By bringing our brands under the Kering umbrella, we were able to streamline negotiations with airport partners. This paved the way for us to open new travel retail boutiques in London, Bangkok and Rome. And there are still lots of possibilities!

How do you work with the Houses?

We help the brands to craft and deploy their travel retail strategy, although we leave them in charge of implementation. Each House has its own identity and vision, reflected in its approach to travel retail. Some want to use it as a global showcase to reach out to millions of new consumers. Others have come up with specific solutions for products and their accompanying campaigns. The idea is to create the maximum number of possible interactions with potential consumers in the airport by offering them a different kind of experience, such as pop-up stores for product launches. Kering Eyewear has developed a new collection of Gucci sunglasses exclusively for travel retail.

Are you also seeing a new approach by the airports?

Airport shopping environments have undergone a radical change in the last decade. The new Asian hubs, for example, are designed to be travel retail friendly. Conversely, some facilities have not yet evolved, leaving huge development potential, while others will prove hard to upgrade – such as Roissy Charles de Gaulle Airport’s Terminal 1, which is protected. Another noteworthy point is that consumers no longer come to duty free areas only to catch a plane: these stores have evolved from transitional zones into shopping destinations in their own right. The airport environment is a game changer: millennials find it easier to connect with luxury products in a duty-free store than in a traditional boutique because the doors are always open to them. Since retail is becoming revenue source that is almost as profitable as the airline business, airports are adjusting their strategies and beginning a paradigm shift.

What are your medium- and long-term goals for travel retail?

We have big goals. There are lots of development possibilities, for one simple reason: travelers will always have to go in person to catch their plane. Digital is the next step but remains very underdeveloped in travel retail . I believe that airport stores will be the last bastions of brick and mortar.

“Travel retail in 21st century? Chinese, Millennials and Digital”

Boosted by the growth in passenger volumes, improvements in the retail space and an increasing role for digitalization, travel retail offers a wealth of business opportunities – especially if you can attract Chinese and Millennial buyers, says Martin Moodie, founder of The Moodie Davitt Report, travel retail’s leading B2B media.

“A special opportunity for brands and their audiences”

For Isabelle Fourmentin, CEO of JCDecaux Airport Paris (a joint venture owned by JCDecaux and Paris Aéroport) travel retail is a special opportunity for brands to engage with their audiences. To seize it, brands need to focus their communication on the in-store experience. Here are the major trends at work in a distribution channel that is enjoying very rapid growth.

Travel retail: where Luxury spreads its wings

Aeroporti di Roma (AdR) has developed a new retail strategy for its flagship airport at Fiumicino, providing infrastructure and operational support for its shopping areas. Gianluca Littarru, AdR’s General Manager, explains the changes and the central role being played by Luxury Retail in this new airport environment. The focus is on giving high-spending passengers the time and opportunity to do their shopping in a dedicated Luxury space.

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• Consumers in the U.S. are reducing their spending on non-essential goods, and this is weighing on luxury sales.
• However, China’s reopening is a tailwind for the sector, especially as Chinese consumers are a major driver of luxury spending.
• Upscale brands — along with hard luxury goods such as watches and jewelry — are expected to be most resilient amid this uncertain macro environment, depending on specific brand momentum. 

During the current cost-of-living crisis , consumers are cutting back on spending — but demand for luxury goods remains high. In the fourth quarter of 2022, the luxury market grew 7% organically year-over-year, figures from J.P. Morgan Research show.

“Investors are seemingly turning more constructive on the luxury sector,” observed Chiara Battistini, Head of European Luxury and Sporting Goods at J.P. Morgan. “But while the sector is more resilient, we also note that it has never been immune to macro dynamics and has historically been late cyclical.”

Looking ahead, will ongoing macro uncertainty take a toll on the luxury industry? And will China’s reopening boost the sector’s fortunes? 

While the luxury sector is more resilient, we also note that it has never been immune to macro dynamics and has historically been late cyclical.

Chiara Battistini

Head of European Luxury and Sporting Goods, J.P. Morgan

TITLE: Luxury Outlook– Descriptive Transcript

This video opens with text over a close up of an intricate watch face:

Text on screen:

What's next for the luxury market?

More text appears below a row of diamond rings in a display case:

U.S. consumers are reducing their spending on non-essential goods, and this is weighing on luxury sales.

Text continues over an image of a piggy bank:

This is partly because consumers are using up the excess savings they accrued during the pandemic.

A hammer crashes down on the piggy bank, and it shatters in slow motion, spilling out coins. More text appears below a cityscape:

However, China's reopening is a tailwind for the sector, especially as Chinese consumers are a major driver of luxury spending.

Text continues under three levels of mall escalators:

Overall, upscale brands will likely be most resilient amid this uncertain macro environment, depending on specific brand momentum.

J.P. Morgan.

jpmorgan.com/research.

[END OF VIDEO]

U.S. and Europe: Luxury shoppers are tightening their purse strings

“The strength and resilience of the Western consumer in 2022 has been impressive. However, fourth-quarter sales numbers have shown signs of ongoing normalization,” said Battistini. 

In the third edition of J.P. Morgan’s Cost of Living survey, which polled 5,000 consumers across the U.S. and Europe in March 2023, nearly 75% of U.S. consumers said they expect to reduce spending on non-essential goods by at least 6%. European consumers feel less worried about their financial circumstances compared with six months ago, but again, almost 75% expect to decrease discretionary spending by over 6%.

This is partly because consumers are using up the excess savings they accrued during the pandemic. According to J.P. Morgan Research, excess savings in the U.S. peaked at around $2.1 trillion in the second quarter of 2021, decreasing to an estimated $800 billion in the fourth quarter of 2022. This savings cushion is forecast to be fully depleted by the third quarter of 2023. 

U.S. consumers are depleting their excess savings

Relative to the fourth quarter of 2019, the level of excess savings held by U.S. consumers peaked at almost $2.4 trillion in mid-2021, declining to about $1.7 trillion in the fourth quarter of 2022. It is projected to continue decreasing over time. 

Waning consumer confidence is in turn weighing on sales across most luxury brands covered by J.P. Morgan Research. “Corporates in the U.S. have flagged this is mainly due to American tourists buying more in Europe, but we note that sales growth across both markets is still slowing,” said Battistini. Indeed, the regions’ combined organic sales growth fell to 11% year-over-year in the fourth quarter of 2022, down from 17% in the third quarter.

“Assuming further trend moderations in these two key regions, we would reduce the upside risk to estimates of our regional analysis to 3% on sales and 6–7% on profits,” said Battistini. 

China: Shoppers are back and spending on luxury goods 

On the other hand, China’s recent reopening is expected to be a tailwind for the sector, especially as Chinese consumers are a major driver of luxury spending. During the 2021 financial year, luxury goods companies generated around 30% of their total sales in Greater China. However, business took a hit during COVID-19, with most brands posting around a 10% decline in sales for the 2022 financial year.

Like consumers elsewhere, Chinese shoppers have accumulated excess savings over the past three years. J.P. Morgan Research estimates that the average saving rate in China was 33.5% in 2022, up from 29.9% in 2019. This, along with pent-up demand, is fueling post-pandemic revenge spending.

Indeed, domestic luxury sales are booming. In January and February 2023, total retail sales in China were up 17% on a four-year stack. There was sequential improvement across all segments tracked by J.P. Morgan Research, including gold and jewelry (+48%), cosmetics (+34%) and apparel (+13%). Demand for luxury timepieces is rising, too: Swiss watch exports to China accelerated to +68% on a four-year stack in February 2023. 

What are Chinese shoppers buying?

In January and February 2023, total retail sales in China were up 17% on a four-year stack. There was sequential improvement across all segments tracked by J.P. Morgan Research, including gold and jewelry (+48%), cosmetics (+34%) apparel (+13%) and automobiles (+5%).

In addition, Chinese consumers are traveling again, which could boost overseas spend on luxury goods. In March 2023, outbound flights to Italy and Korea reached 65.4% and 34.9% of 2019 average levels respectively. However, it remains to be seen if this will drive the luxury sector’s growth, especially as goods in this category have recently become more affordable in China thanks to reduced import duties.

“In our view, the piece of the puzzle that is most difficult to square is how much the return of travel will contribute incrementally to growth, versus cannibalizing the existing sales already taking place domestically,” said Battistini. “We think this should provide more sizeable support to 2024 rather than 2023, given visa requirements and the fact that flight numbers are still relatively subdued.”

Overall, the return of the Chinese consumer looks set to be a huge boon for the luxury industry. “We think that if pent-up demand comes through fully in 2023, luxury companies could post around 35­–40% sales growth in China this year,” said Battistini. 

Luxury brands: A return on investment?

“ While China’s reopening should benefit the whole sector, we expect the magnitude to vary depending on specific brand momentum, with consumers gravitating first and most to brands and products they want to buy and wear,” noted Battistini.

Against a deteriorating macro backdrop, upscale brands stand to emerge as winners. “If the consumer becomes sensitive to inflation, we would expect higher-ticket items and coveted brands in leather goods to be more protected. Consumers might also favor purchasing hard luxury items such as watches and jewelry, which potentially represent a more attractive investment,” said Battistini. This is reflected in rising Swiss watch exports, which were up 12% year-over-year in February 2023 in value terms, according to J.P. Morgan Research.

That said, luxury brands across the board will likely ramp up their marketing efforts to boost sales amid challenging market conditions. “We saw an increase in operating expenses in the second half of 2022, mostly due to higher marketing spend to maintain and further drive brand momentum,” noted Battistini. “This raises a question mark about the investments needed to excite and engage consumers, who are becoming ever more demanding.” 

This communication is provided for information purposes only. Please read J.P. Morgan research reports related to its contents for more information, including important disclosures. JPMorgan Chase & Co. or its affiliates and/or subsidiaries (collectively, J.P. Morgan) normally make a market and trade as principal in securities, other financial products and other asset classes that may be discussed in this communication.

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The Anatomy of Travel Retail

LONDON, United Kingdom — Travel retail typically plays second fiddle in brand communications, which emphasise flagship mono-brand stores. But, people travelling account for 40 percent of global spending on personal luxury goods, with 12 to 13 percent captured by the specialised and globally dispersed travel retail channel.

Airport malls account for almost 60 percent of the travel retail market, but the travel retail channel also includes ferries and cruises, border shops and downtown duty and tax-free shops.

These channels each have their own characteristics. Airport operators typically charge rent as a percentage of sales, which limits the potential upside for retailers as it reduces their operating leverage. Additionally, airport locations normally come with guaranteed minima attached. These can be expressed as absolute dollar amounts, in which case the retailer bears a traffic, consumer mix and execution risk. More frequently however, the dollar amounts are linked to traffic volume, in which case the retailer carries the consumer mix and execution risk only.

By contrast, the economics of downtown travel retail are similar to those of traditional luxury retail operations under fixed rental cost agreements. These stores typically have higher potential for operating leverage. Downtown and border shops compete directly with tax refund and display the same fundamental dynamics; fast growth with the continuing rise in traveller numbers, susceptibility to travel disruption and dependence on key brands. However, downtown tax free stores follow the business logic and constraints of the traditional high street, where tax refunds are available.

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Tax and duty free stores have a clear price advantage over the domestic market. They also face limited direct competition from other retailers, especially on core categories — airports with two or more operators for a single category are a minority. However, space growth is constrained by the need to win and retain concessions.

Diverse approaches to a complex channel

LVMH is the only luxury goods player with significant direct operations in travel retail, through its selective retail division. The division, comprising of duty free operator DFS and beauty products chain Sephora, booked sales of €9.5 billion (about $10.38 billion) and operating earnings of €882 million (almost $964 million) in 2014. Of this, DFS contributed an estimated 42 percent of sales and 38 percent of profits.

Salvatore Ferragamo is by far the most exposed brand to travel retail, with 138 duty free locations, more than twice as many as the number two, Hermès. It also operates nearly 27 percent of travel retail mono-brand points-of-sale (POS). Hermès and Bulgari follow with 60 and 51 travel retail locations respectively, each with about 19 percent of travel retail mono-brand POS. The list continues with Gucci , Swatch and Cartier.

The brand order is very different in terms of travel retail POS as a percentage of total POS: Shanghai Tang (30 percent), Givenchy (16 percent), Chloé (14 percent), Bottega Veneta (10 percent). But the picture could change as more and more travel retail POS are opened. In the past two years, Swatch has opened 26, Hermès and Givenchy have opened 13, Chloé 11, Bottega Veneta 10, Bulgari 10 and Cartier nine.

Hermès is the most exposed of the high-end brands, by a big margin, with 49 airport locations (Bottega Veneta 19, Chanel seven, Dior three).

Among the mega-brands, Louis Vuitton has the lowest exposure to travel retail, with only two airport locations (Gucci 31, Burberry 22, Prada nine). However, the brand operates 15 downtown locations, piggybacking on DFS Galleria (Gucci 15, Prada 15). This could give Louis Vuitton better marginal headroom for space growth, should it decide to expand more meaningfully into accessible categories — fashion jewellery, eyewear, fragrances and cosmetics, and silk scarves.

Will travel, will spend

The overall market is growing fast, by an aggregate 8.4 percent a year in the past 10 years. This is several percentage points faster than the broader personal luxury goods market and nearly three times as fast as GDP. If we include spirits, cigarettes and electronics, the travel retail market has doubled in value during the period, to about $63 billion.

Asia-Pacific is the largest and fastest growing region for travel retail ($24 billion, 13.8 percent compound growth between 2004 and 2014), with sales largely through airports, and downtown and border shops. Seven of the top eight downtown duty free locations are in Asia. Europe is the second-biggest region ($21 billion), but has the lowest growth (4.4 percent in 2004–14) and is focused on airports ($14.2 billion). The Americas region is worth about $11.5 ($6.3 billion in border shops, $4.6 billion in airports) and is growing by 7.1 percent a year. The Middle Easter and Africa market is about $6.7 billion, focused mainly on airports ($5 billion), with a compound annual growth rate of 12.4 percent for 2004–14.

As may be expected, the biggest country is Greater China (Mainland, Hong Kong, Macau, plus Taiwan), at about $10 billion, followed by South Korea ($8 billion). The third market is USA ($3.8 billion) followed by big western European countries (UK $3.7 billion, Germany $2.9 billion), the UAE ($2.7 billion) and Turkey ($2.2 billion).

However, the travel retail market is by nature sensitive both to foreign exchange rates and to exogenous shocks; terrorism, health scares, financial crises and so on. For example, the weakness of the yen and the euro have encouraged a sharp increase in spend in Japan and the Eurozone, primarily by Chinese consumers — and by Chinese professionals arbitraging price differences by buying in Europe to sell then in China through specialist websites. By the same token, Japanese consumers have withdrawn from international markets. Meanwhile, the stronger United States dollar is feeding hopes of a revival in international American spend worldwide. Currency fluctuations have also been partly responsible for a nominal slowdown in market growth in the last three years.

Conversely, regional diversity helps cushion the impact of external shocks. The buoyancy of Asian and Chinese demand has been further support. By the end of 2010, the travel retail market had fully recovered from the 2009 financial crisis and even exceeded the 2008 level — a strong performance in Asia-Pacific and the Middle East more than offset a slower recovery in Europe and Latin America.

The regional figures also underline the growing importance of emerging-market travellers. They are expected to be one of the main forces behind the forecasted doubling of air traffic in the next 15 years, including sharp increases in domestic air traffic in developing Asia and Latin America. This offers a potentially rich target for travel retail.

The result is a positive double-whammy outlook for travel retail, as emerging market nationalities are also the biggest spenders per passenger. Travel retail should therefore continue to grow faster than the personal luxury goods market.

Luca Solca is the head of luxury goods at BNP Exane Paribas.

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Luxury travel and tourism worldwide - statistics & facts

What are the leading luxury hotel brands in the world, how is the luxury cruise market faring, what are the preferences of affluent travelers, key insights.

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Value of various global luxury markets 2022, by market type

Growth rates of the luxury cruise market value worldwide 2023

Affluent consumers' preferred holiday activities worldwide Q4 2023

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Luxury Goods

Highest-rated luxury hotel brands in North America 2023

Full-Service Retaurants

Selected countries with the most Michelin-starred restaurants worldwide 2023

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• Premium Statistic Luxury travel market size worldwide 2022-2032
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• Premium Statistic Growth rates of the luxury cruise market value worldwide 2023
• Premium Statistic Fashion and luxury goods M&A deals worldwide in 2022, by product category
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Luxury travel market size worldwide 2022-2032

Estimated size of the luxury travel market worldwide in 2022, with a forecast for 2032 (in billion U.S. dollars)

Value of various global luxury markets in 2022, by market type (in billion euros)

Growth rates of the luxury hospitality market value worldwide 2022

Growth rates of the luxury hospitality market value worldwide in 2022

Growth rates of the luxury cruise market value worldwide in 2023

Fashion and luxury goods M&A deals worldwide in 2022, by product category

Number of merger and acquisition deals in the fashion and luxury goods sector worldwide in 2022, by sector

Fashion and luxury goods: average M&A deal value worldwide 2022, by product category

Average merger and acquisition deal value in the fashion and luxury goods sector worldwide in 2022, by sector (in million U.S. dollars)

Luxury accommodation market

• Premium Statistic Global luxury hotel supply 1983-2023
• Premium Statistic Supply of ultra-luxury hotels worldwide 1983-2023
• Premium Statistic Share of luxury hotel supply worldwide 2023, by brand
• Premium Statistic Share of luxury hotel supply in the Americas 2023, by brand
• Premium Statistic Highest-rated luxury hotel brands in North America 2023
• Premium Statistic Luxury hotels: average M&A deal value worldwide 2022

Global luxury hotel supply 1983-2023

Luxury hotel supply worldwide from 1983 to 2023, with a forecast for 2033 (in 1,000s)

Supply of ultra-luxury hotels worldwide 1983-2023

Ultra-luxury hotel supply worldwide from 1983 to 2023 (in 1,000s)

Share of luxury hotel supply worldwide 2023, by brand

Distribution of the luxury hotel supply worldwide as of February 2023, by brand

Share of luxury hotel supply in the Americas 2023, by brand

Distribution of the luxury hotel supply in the Americas as of February 2023, by brand

Highest-rated luxury hotel brands in North America as of May 2023

Luxury hotels: average M&A deal value worldwide 2022

Average merger and acquisition deal value in the luxury hotel market worldwide from 2016 to 2022 (in million U.S. dollars)

Company focus: Inspirato

• Premium Statistic Number of active Inspirato subscribers worldwide 2017-2022
• Premium Statistic Total revenue of Inspirato worldwide 2012-2022
• Premium Statistic Quarterly number of nights booked through Inspirato worldwide 2020-2023

Number of active Inspirato subscribers worldwide 2017-2022

Total number of active Inspirato subscribers worldwide from 2017 to 2022 (in 1,000s)

Total revenue of Inspirato worldwide 2012-2022

Total revenue of Inspirato worldwide from 2012 to 2022 (in million U.S. dollars)

Quarterly number of nights booked through Inspirato worldwide 2020-2023

Total number of nights booked through Inspirato worldwide from 1st quarter 2020 to 1st quarter 2023

Luxury cruise market

• Premium Statistic Luxury cruises: average M&A deal value worldwide 2022
• Premium Statistic Passenger capacity of luxury cruise brands worldwide 2022
• Premium Statistic Number of ships operated by luxury cruise brands worldwide 2022
• Basic Statistic Most expensive luxury cruise trips on Tripadvisor worldwide 2023

Luxury cruises: average M&A deal value worldwide 2022

Average merger and acquisition deal value in the luxury cruise market worldwide from 2016 to 2022 (in million U.S. dollars)

Passenger capacity of luxury cruise brands worldwide 2022

Passenger capacity of selected luxury cruise brands worldwide in 2022

Number of ships operated by luxury cruise brands worldwide 2022

Number of ships operated by selected luxury cruise brands worldwide in 2022

Most expensive luxury cruise trips on Tripadvisor worldwide 2023

Most expensive luxury cruise trips listed on Tripadvisor worldwide as of August 2023 (in U.S. dollars)

Affluent travelers

• Premium Statistic Share of affluent consumers buying travel products worldwide Q4 2023, by age
• Premium Statistic Affluent consumers expecting to take a vacation worldwide H2 2022, by type
• Premium Statistic Preferred types of holiday in the Americas for affluent consumers worldwide Q4 2023
• Premium Statistic Preferred types of holiday in Europe among affluent consumers worldwide Q4 2023
• Premium Statistic Affluent consumers' preferred holiday activities worldwide Q4 2023
• Premium Statistic Interest of affluent consumers in travel and luxury brand partnerships worldwide 2022
• Premium Statistic Interest of affluent consumers in technology to improve holidays worldwide H2 2022

Share of affluent consumers buying travel products worldwide Q4 2023, by age

Share of affluent consumers that purchased travel products worldwide as of 4th quarter 2023, by age

Affluent consumers expecting to take a vacation worldwide H2 2022, by type

Share of affluent consumers that expected to take a holiday within the next year in selected regions worldwide as of 2nd half 2022, by type of vacation

Preferred types of holiday in the Americas for affluent consumers worldwide Q4 2023

Share of global affluent consumers willing to take a holiday in the Americas as of 4th quarter 2023, by type

Preferred types of holiday in Europe among affluent consumers worldwide Q4 2023

Share of global affluent consumers willing to take a holiday in Europe as of 4th quarter 2023, by type

Affluent consumers' preferred holiday activities worldwide Q4 2023

Main holiday activities done by affluent consumers worldwide as of 4th quarter 2023

Interest of affluent consumers in travel and luxury brand partnerships worldwide 2022

Share of affluent consumers that were interested in travel brands partnering with other luxury brands in selected regions worldwide as of 2nd half 2022

Interest of affluent consumers in technology to improve holidays worldwide H2 2022

Share of affluent consumers that were interested in the use of technology to improve their holidays in selected regions worldwide as of 2nd quarter 2022

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EssilorLuxottica reveals trends shaping luxury travel retail; shares 2024 plans

By Faye Bartle | Thursday, 23 November 2023 16:31

Gianmarco Montesano, Regional Director TRAP, EssilorLuxottica in Cannes, 2023.

A growing emphasis on sustainability, engaging customers through experiences and a ‘constant reach’ for new innovations are key trends predicted to shape the luxury travel retail industry over the coming years, according to EssilorLuxottica.

“In a competitive industry, it is crucial for brand-owners to stay up-to-date on the latest trends to maintain their edge,” said Gianmarco Montesano, Regional Director Travel Retail Asia Pacific, EssilorLuxottica, who met with TRBusiness on the company’s attention-grabbing stand at the TFWA World Exhibition in Cannes.

“Sustainability has become a prevailing trend in the travel retail sunglass category, with consumers increasingly seeking eco-friendly and ethically sourced eyewear options, driving the industry towards more sustainable practices and materials,” he said.

“The travelling customer values engaging experiences as much as the products they are buying, recognising that memorable interactions and immersive encounters not only enhance their shopping journey but also contribute significantly to the overall value they derive from a purchase.

He added: “Innovation stands as a burgeoning trend in the travel retail sunglass category, with manufacturers and retailers continually pushing boundaries to introduce cutting-edge designs, advanced lens technologies and sustainable materials, offering travellers unparalleled choices and enhancing their eyewear shopping experience.”

These leading trends are driving the strategies implemented by brands in the EssilorLuxottica portfolio.

Elements of this were reflected in the company’s stand in Cannes – a vibrant blend of luxury, tech and first-class entertainment, from the Smart Shopper technology to the Ray-Ban virtual Formula One driving experience.

The EssilorLuxottica stand in Cannes has a catwalk-inspired main entrance, reflecting the company’s ‘world of luxury eyewear’.

“We had a productive week of meetings with industry partners to drive conversations around how we can collectively elevate the eyewear category,” said Montesano.

“Innovation is at the heart of our discussions with retailers as we explore new opportunities to deliver exciting eyewear collections and activations for our travelling consumers.

“We didn’t want to simply tell people about what we represent – we wanted to show them.

“Our catwalk-inspired main entrance reflected the world of luxury eyewear that EssilorLuxottica represents. We spotlighted the launch of Swarovski eyewear in travel retail with a statement wall, unveiling an exquisite collection of stylish products. We also encouraged visitors to engage with our F1 simulator, further amplifying our dedication to delivering elevated experiences.”

The Ray-Ban Meta smart glasses collection offers the first-ever eyewear with live streaming and Meta AI built-in.

He continued: “And of course, the new Ray-Ban Meta smart glasses collection spotlighted in our booth with a dedicated space, speaks to how EssilorLuxottica is building the future of eyewear through constant innovation.

“The collection offers the first ever eyewear with live streaming and Meta AI built-in – available in the US only – a higher quality camera, and improved audio and microphone systems paired with a redesigned, more intuitive app and charging case.”

Giving consumers the luxury of choice

As mentioned above, visitors to the EssilorLuxottica stand in Cannes could also test out the Smart Shopper application.

This gives people the chance, via augmented reality technologies, to virtually try on any sunglasses model, in any variant ( thanks to the proprietary technologies of ‘virtual mirroring’ in the tool ).

It has already been launched in several countries worldwide, helping to create a more engaging and immersive shopping experiences for consumers.

On top of its roster of hi-tech enhancements, the company has welcomed a number of new brand licences to its portfolio this year, including Swarovski, Ferrari, and Brunello Cucinelli.

“Through an exclusive license agreement, EssilorLuxottica will have the privilege of designing, manufacturing, and globally distributing Swarovski Eyewear,” elaborated Montesano.

“The inaugural collection, set for release in September 2023, will embody the exquisite craftsmanship and innovation synonymous with Swarovski.

“Drawing inspiration from their renowned jewellery collections, these designs will elevate our luxury eyewear range to new heights.”

Swarovski is among the new brand licences in EssilorLuxottica’s portfolio.

Further to this, Brunello Cucinelli and EssilorLuxottica are building on their ongoing partnership by entering into an exclusive 10-year license agreement, with the first collection under the renewed understanding to be introduced to the market by EssilorLuxottica in early 2024.

“Additionally, we are delighted to announce the renewal and expansion of the partnership with Ferrari S.p.A.,” added Montesano. “EssilorLuxottica will continue to design, produce and market eyewear products featuring the Scuderia Ferrari and Ray-Ban brands.

“The licensing activities also extend to the first collection of monobrand eyewear featuring the Prancing Horse trademark.

“Moreover, our partnership with Scuderia Ferrari will expand further, with the Ray-Ban logo prominently featured on the exterior of Formula 1 cars and the apparel of official drivers in Competizioni GT.

“This includes their participation in the World Endurance Championship with the Le Mans Hypercar and a Gran Turismo championship with GT3 cars, exemplifying our shared pursuit of excellence in both style and performance.”

A notable hit this year has been the Ray-Ban Reverse Collection ( featuring the brand’s first-ever inverted lens) , which has sparked a global buzz ( the collection was kick-started on the red-carpet at the Met Gala with musician Labrinth ).

“We gave consumers something fresh and dynamic whilst still maintaining our iconicity and the global sales so far are confirming the positive launch,” said Montesano.

Seeing positive signs in Asia

As Montesano stressed, the Asian market is “always a key focus” for EssilorLuxottica and is set to play an important role in the future global development of the company.

“The APAC region offers huge opportunity for the sunglass category for many reasons, it is home to some of the most populous countries in the world, offering access to billions of potential customers,” he said.

“Additionally, APAC countries have experienced rapid economic growth in recent years, leading to the emergence of a growing middle class.

“With rising disposable incomes, people in this region are increasingly willing to spend on fashion and lifestyle products, including sunglasses.

“With a vibrant fashion scenes and a strong emphasis on personal style and trends, this fashion-conscious culture drives the demand for luxury fashion items.”

Of course, dynamics have shifted post-Covid and although average passenger spend of those in the region is now up on 2019, EssilorLuxottica continues to draw upon the lessons learned during the bounce back.

Left: Communicating the tailored features of EssilorLuxottica’s Asia Design collection. Right: The Smart Shopper application.

“In post pandemic times, the travel retail industry has a steady focus on how the travel markets are recovering globally,” said Montesano. “When we look at the revival of travel retail across the APAC region, we see positive signs.

“According to travel retail research experts m1nd-set, there was a remarkable year-on-year growth of nearly 340% in Asia Pacific air traffic in 2022. Shoppers are also demonstrating a significant increase in spending compared to 2021.

“The study indicates that the average spend per passenger among Asia Pacific duty free shoppers in 2022 showed a 5% increase compared to 2019, and a substantial 38% increase compared to 2021.

“The past few years have taught us the crucial value of flexibility. The worldwide travel shutdown compelled travel retail brands to explore alternative channels to connect with their customers, including the adoption of digital practices. These valuable lessons can now be carried forward to open new opportunities for engagement.”

Jimmy Choo collaboration to launch in 2024

There’s plenty more to come from EssilorLuxottica in the New Year, including an exclusive agreement with Jimmy Choo for the design, manufacture, and distribution of Jimmy Choo eyewear.

In 2024, EssilorLuxottica is focusing on enhancing communication around its luxury brands in travel retail.

“Consumers can expect to shop the first collection from Q1 2024 which will be developed under the leadership of Jimmy Choo Creative Director Sandra Choi to channel the glamorous style and playful spirit of the luxury brand,” said Montesano.

Additionally, EssilorLuxottica is focusing on enhancing communication around its luxury brands in travel retail, while aiming to create immersive experiences that “showcase the craftsmanship and innovation” behind each product.

“We will also be communicating about a number of recent new licenses that will be rolling out over the next few months in travel retail,” revealed Montesano.

“Partnerships stand at the forefront of EssilorLuxottica’s strategy, as they strive to be a pioneering collaborator driving innovation in design and technology, and redefining entertainment in the eyewear industry.”

READ MORE: EssilorLuxottica celebrates centenary with Disney X Coach collection

READ MORE: EssilorLuxottica brings Polo Ralph Lauren World of Tennis to Heathrow

READ MORE: EssilorLuxottica and Jimmy Choo announce 10-year licensing deal

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Why Luxury Travel Brands Should Pay Attention to High-End Retail Trends

Laura Powell, Skift

October 17th, 2017 at 11:45 AM EDT

International spending on luxury goods often tracks movements in worldwide travel. A recent report sheds light on how travel and high-end shopping are intertwined.

Deloitte’s “Global Powers of Luxury Goods 2017” examines the world’s largest luxury goods companies based on consolidated sales. While travel purveyors are not included in the study, in this case by design, many of the findings of the report are relevant, particularly for industry players keen to woo free-spending international shoppers.

According to Deloitte, “Consumers in emerging markets continue to drive luxury market growth. In China, Russia and the United Arab Emirates, the percentage of consumers claiming to have increased their spending stood at 70 percent, compared to 53 percent in more mature markets (EU, US and Japan).”

Many of those consumers in emerging markets are doing the bulk of their luxury spending while on the road. On average, almost half of luxury purchases are made by consumers who are traveling, either in a foreign country (31 percent) or while at the airport (16 percent). However, “the proportion rises to 60 percent for consumers from emerging markets, who may not have access to the same range of products found in mature markets.”

Next, looking at buying behavior by generation, the older one is, the greater the propensity to buy luxury goods at home. So, destinations looking to appeal to high-end international tourists might want to focus on local luxury shopper opportunities for millennials from emerging markets.

Although the report focuses on the luxury retail sector, many trends parallel what’s happening in the travel industry. For example, Deloitte notes that the luxury market for goods has moved “from an emphasis on the physical to a focus on experiential and how luxury makes you feel. Status has now become less about ‘what I have’ and more about ‘who I am’; more ethical, tasteful and discerning.” This ties right in with travel trends recently covered by Skift New Luxury reporting.

The report also considers the global economic outlook, which it says continues to be challenging for luxury brands due to slow growth in mature markets, protectionist backlash against globalization, and troubled credit in some markets. The U.S. still leads the luxury market, although spending has slowed due to the strong dollar and the resulting slowdown in foreign tourists. China may soon overtake the U.S., but for now, the report notes that economic uncertainty there is dampening consumer confidence.

For those curious as to which company came in as Deloitte’s #1 luxury brand, it was LVMH Moët Hennessy Louis Vuitton SE. That’s the parent company of Louis Vuitton, which came in at #19 on Interbrand’s 100 Best Global Brands .

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Photo credit: Louis Vuitton’s parent company tops Deloitte’s luxury brand rankings. 253821

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“The future is connected” — 2.0 & Partners on luxury’s changing role in travel retail

In this interview, 2.0 & Partners CEO Fabio Bernardini and Senior Executive Vice President Marco Passoni assess the luxury category’s role in driving a dynamic recovery for the channel. The partners also share their insights into how COVID-19 has forced the industry to evolve, where the biggest shifts lie, and how parties in the Trinity should adapt to meet them.

The focus, according to 2.0 & Partners is about delivering memorable experiences. “We cannot run our industry from generic boxes anymore,” they say. “Brands need space to create and thrive, otherwise they cannot deliver the returns which retailers need. Flexible options such as pop-ups and boutiques need to be created in locations where travellers can find an oasis of luxury, rather than searching desperately in a soulless multi-brand store.

“Co-operation, collaboration and creativity are key. The future is connected, both for our shoppers and for us.”

What is the major focus for 2.0 & Partners at the Virtual Travel Retail Expo? 

The Virtual Travel Expo is a vital opportunity to bring people together again. We have been isolated and separated for the past 18 months – and this is a people business. While travelling internationally remains an issue, the chance to bring many people and opinions together in one digital place is more important than ever.

The centrepiece for us at the Expo will be our new e.Alert service. Keeping the industry connected and informed is vital as we look to rebuild. Our new service will help our clients, brands and operators who want to work with us stay informed about the opportunities and locations which could benefit them. It will be a chance for us to share our experience, knowledge and understanding with the wider industry on a regular basis.

How do you see assess the future for luxury in the channel today? Are you optimistic for its future? What needs to change or evolve to ensure luxury can play its full part in driving a dynamic travel retail channel?

Luxury has never been more important. You only must look at the industry today to see the huge role that luxury will play going to play going forward – and is already playing now. Shoppers want experience, they want excellence and they want the best they can get for their money. These are the hallmarks of luxury.

Luxury brands can deliver experiential shopping like no one else; they are experts in crafting and delivering brand stories. To make the most of that, the travel retail industry must think beyond simple boxes and multi-brand stores to create flexible and dedicated spaces where brands can cultivate experiences and breathe life into their offer.

On the other hand, brands must also be mindful of the unique possibilities and challenges of the airport space and ensure that their offer is crafted specifically to the time and space constraints, and be fully integrated into a holistic, omnichannel shopping journey.

2.0 & Partners services brands, airports and operators helping each member of the Trinity maximise their travel retail offer. How has the COVID-19 crisis altered your approach for each of these client types?

The pandemic has changed the industry and how we all do business. For brands, everything must now be connected as part of an omnichannel journey. Brands are no longer just showcasing product and the challenge is to create an online experience which shoppers can also enjoy in a physical setting. This must also be done while recognising the constraints which come with airport shopping. The focus now is on delivering a memorable experience, rather than coldly pushing sales.

For airports and operators, questions arise about the use of space and the nature of contracts going forward. We cannot run our industry from generic boxes anymore. Brands need space to create and thrive, otherwise they cannot deliver the returns which retailers need. Flexible options such as pop-ups and boutiques need to be created in locations where travellers can find an oasis of luxury, rather than searching desperately in a soulless multi-brand store.

Finally, all this change means that we need to re-evaluate contracts and how they are negotiated. If shops are adapting to an omnichannel world where sales can happen online and offline, then minimum guarantees and the like need rethinking. Co-operation, collaboration and creativity are key.

2.0 & Partners operates under five key principles: Experience first, Airside every day, Lead the way, Right for the long-haul and Do what we love. How are these principles informing your post-pandemic recovery strategy?

Even with the restrictions, our team has spent a lot of time airside and travelling as much as we can. We have seen the changes in shopper behaviour first-hand and that experience comes back to our clients. Beyond that, we immerse ourselves in every aspect of this industry. We know that there are no easy fixes and short-term solutions. We have seen and understand the benefits of long-term partnerships which pay dividends for both parties and that insight is what we share with our clients.

How would you like to see industry partnerships evolve as we enter a new era for travel and travel retail?

As mentioned, contracts and use of space need reviewing. But the industry must learn to work together better in every way. The travel retail market is unique and special. It is a platform where brands, that would never come into contact anywhere else, can sit side by side. It is a world where shoppers can discover a wonder a product they’ve never seen before or enjoy an experience they’ve only dreamed of. This must be leveraged to create unique collaborations, products and experiences that will enchant shoppers, providing something that digital cannot. This requires open and honest collaboration. The future is connected, both for our shoppers and for us.

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Inside travel retail’s hidden gem: Cruise ships

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Chanel’s latest beauty pop-up isn’t on the Champs-Élysées or in Soho. It’s aboard the Virgin Voyages Valiant Lady cruise liner, which set sail from Miami in October. Dedicated primarily to the Les Eaux fragrance range, the pop-up also carries Chanel skincare and makeup.

An often overlooked sector of the travel retail market, cruise ships are reemerging as a unique and lucrative platform for beauty brands, thanks to the combination of dynamic retail space, tax-free shopping and wealthy customers with time to kill.

“The difference with cruise ships versus airports is on a cruise liner, people are in that space for at least six days, sometimes even longer than two weeks,” explains Judah Abraham, senior director of business development at wholesale distributor Cosmopolitan Cosmetics. “You have the same customers coming in multiple times to the retail space rather than just passing through on the way to their flight.” In 2000, LVMH acquired onboard retail company Starboard Cruises, which operate 700 stores on 100 ships. Starboard offers standalone boutique stores for LVMH brands, including Bulgari and Hublot, and distributes luxury lines, such as La Prairie and Lancôme.

The cooling-off period that beauty consumers sometimes have with bigger ticket purchases such as fragrances is also truncated: on board, customers can try out a perfume and see how it lasts on their skin before coming back to purchase the next day. Repeat business is also likely — 80 per cent of people who go on a cruise say they intend to go on another, a figure that rises to 85 per cent among millennials.

Chanel's latest beauty pop-up aboard the Virgin Voyages Valiant Lady cruise liner, which set sail from Miami in October.

Like many travel industries, cruising was hard-hit by the pandemic, with the Cruise Lines International Association (CLIA) reporting that embarkations dropped by 81 per cent in 2020 from the previous year and 70 per cent of related business reporting layoffs or furloughing during the pandemic. However, the industry is proving resilient in the long-term: in the CLIA upside predictions, passenger volume is expected to recover to 101 per cent of 2019 levels by the end of 2022 and 12 per cent higher than 2019 by 2026. Approximately 60 per cent of related businesses and organisations are now hiring.

The cruise liner retail market was valued at $436.8 million in 2020 and is projected to reach $2.9 billion by 2028, according to Allied Market Research. Big-name brands such as Benefit Cosmetics, Clarins and Dior all sell in the cruise retail space, as well as indie names like Foreo and Spectrum Collections. As well as Chanel, Virgin Voyages is championing smaller companies such as Comfort Zone, says associate vice president of onboard revenue Sally Barford. “We want the retail space to feel edited and curated,” she says.

The indie advantage

Cruise retailer Harding+ say beauty has grown by 30 per cent within its business, an uptick beauty category manager Caitlin Allen chalks up to growth in niche brands and changes in the cruise guest demographic, which are skewing younger according to recent booking data. The company added 22 new beauty brands to its partner list last year, including Augustinus Bader, By Terry and Anastasia Beverly Hills, Allen says. She adds that cruise guests are close to rebounding since the pandemic halted trips, with passenger numbers just 5 per cent below peak levels in 2019. With over 104 brands across 90 different onboard shops, Harding+, who worked with Chanel to create the Valiant Lady pop-up, is a $700 million business globally.

For indie brand Foreo, which makes beauty tools such as cleansing and skin-firming devices, cruise retail has proven a vital platform for consumer education as well as sales. Describing cruise retail as “core” to its 2023 growth strategy, head of sales Robert Stout says that travel retail currently makes up 10 per cent of Foreo’s business, and its 500 per cent increase year-to-date in sales is mainly driven by cruise retail. “We’ve found that cruise ships give us a really great way to spend more time with our customers,” says Stout. “We can offer them a really strong consultation and education experience to help them understand how a device fits into their routine and benefits them. That’s where we’ve seen significant growth.” Currently, on 10 ships, the company plans to increase their cruise distribution network from 2023.

Makeup brush company Spectrum Collections (left) and indie brand Foreo (right) see cruise and travel retail as an important part of their growth going forward.

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Makeup brush company Spectrum Collections describes travel retail as a “huge growth market”, and that it anticipates it to be 20 per cent of its wholesale business in 2022. Currently on a range of ships, including P&O, Virgin Voyages and Tui Marella, head of retail Kylee Timber says 2022 has brought about renewed interest in cruising and that they have seen a strong uptick in sales. Timber says the company will soon be partnering with Starboard Cruises.

Patricia Abergel, general manager of Americas export and travel retail at skincare brand Clarins, confirmed travel size products and sets exclusive to the cruise environment are amongst their best sellers on board, with gifting being a strong motivation for purchase. She describes Clarins's current cruise presence as “very limited” and said the company has plans to increase its distribution and visibility with new offers and products from fall 2022 onwards. “Fifty-two per cent of passengers are between 20 and 59 years old,” explains Abergel. “That’s a very target market for us.”

A more holistic appeal

As well as increased dwell time, cruises offer the potential for brands to connect with customers from all over the globe, allowing for wider reach from a single touchpoint. Harding+’s Allen also points out that cruise ships often have spa and wellness facilities that dovetail well with beauty shopping: “Brands can also use this cruise time to interact with guests, who are always happy to respond to surveys, giving them real-time opinion and guest data.”

Virgin Voyages retains Jennifer Lopez as their chief entertainment and lifestyle officer, offering her skincare line, JLo Beauty, on board the Scarlet Lady ship.

“We wanted to craft a more immersive retail experience,” says Virgin Voyage’s Barford. “A shopping centre on land would always have restaurants and other experiences, not just shops. We wanted to recreate that.” On board Scarlet Lady, Virgin Voyages have a freestanding Mac Cosmetics store next to a hairdressing salon, interspersed with restaurants and bars. “It’s more of a resort-like experience than a pure shopping one,” says Barford, adding that events at the Mac store are usually sold out by the first day. Virgin Voyages also offer pop-up spaces for brands, helping to build time-sensitive and ‘buy me now’ sales appeal.

Barford says emerging brands prove popular in their retail spaces, with customers keen to explore and discover. Harding+’s Allen notes that pop-ups and immersive experiences continually prove popular: “We recently launched an experience on board P&O Cruises with Prai Beauty offering neck treatments and face yoga. Our focus for 2023 and beyond is boosting interactivity, brand education and sampling to keep experiences and treatments fresh.” Virgin Voyages also retains Jennifer Lopez as their chief entertainment and lifestyle officer, offering her skincare line, JLo Beauty, on board the Scarlet Lady ship.

Turning around public perception

The cruise industry may not be perceived with the same level of exclusivity and cool factor as other holiday options, but some experts think the tide is turning. “Cruises perhaps have had something of an image problem,” notes Matt Moorut, director analyst at market research firm Gartner. “However, they are a very important space for beauty brands, including luxury ones. You have a revolving door of new people coming in throughout the journey, who are usually very affluent, and that makes these ships into quite a rarefied retail space.”

Cruise retailer Harding+ launched an experience onboard P&O Cruises with Prai Beauty offering neck treatments and face yoga.

Moorut notes that while higher-end brands may feel uneasy about cruise retail, shoppers are used to seeing luxury brands shoulder-to-shoulder with fast food restaurants and mass retailers in airports, so brand dilution perhaps need not be a concern. The stumbling blocks, according to Moorut and Cosmopolitan Cosmetic’s Abraham, are likely to be logistics and minimum order quantities.

“There is some level of complexity to the process, as well as some high upfront costs, the same with any physical retail space,” says Moorut. “The economies of scale in terms of the upfront cost and the logistics of appearing on multiple ships may be overwhelming for smaller brands,” he says, adding that pop-ups may prove easier for smaller brands. Abraham notes that brands will need to establish good relationships within the wholesale industry to help facilitate their logistics process, as well as be able to offer any cruise retail partners generous amounts of their better-selling products to ensure customers have enough choice.

Rebounding travel numbers and more flexible options from cruise retailers might be an opportunity too good to pass up. “The cruise operators are getting much smarter in terms of how they’re positioning their offerings, with the additions of spas, or other beauty services, or pop-ups,” adds Moorut.

Comments, questions or feedback? Email us at [email protected] .

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Luxury sales are flattening amid a self-inflicted creativity crisis and price hikes, study finds

FILE - A woman walks past the Gucci store window at the Via Montenapoleone fashion district, during the Milan’s fashion week in Milan, Italy, Friday, Sept. 25, 2020. The post-pandemic surge in global sales of luxury handbags, shoes and apparel is on pace to stall this year amid a creativity crisis and price hikes focused on the biggest spending customers. (AP Photo/Luca Bruno, File)

FILE - Creations for ‘Runway Reinvented’, part of the ‘We Are Made in Italy’ collecting fashion event are shown during the women’s Spring Summer 2023 fashion week, in Milan, Italy, Wednesday, Sept. 21, 2022. The post-pandemic surge in global sales of luxury handbags, shoes and apparel is on pace to stall this year amid a creativity crisis and price hikes focused on the biggest spending customers. (AP Photo/Alberto Pezzali, File)

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MILAN (AP) — The post-pandemic surge in global sales of luxury handbags, shoes and apparel is set to stall this year amid a creativity crisis and price hikes as brands shift focus to the biggest spending customers, a new study by the Bain consultancy said Tuesday.

Bain is forecasting flat worldwide luxury sales in 2024 following a slight first-quarter dip, according to the study commissioned by the Altagamma association. The consultancy cited political uncertainty during a presidential election year in the United States as well as economic uncertainty in China that has brought on a phenomenon of “luxury shaming.”

Beyond socioeconomic factors and rising geopolitical tensions, the slowdown is also partly “self-inflicted,’’ said Bain partner Claudia D’Arpizio.

She cited a “creativity crisis,’’ in the sector, as a number of major fashion houses are transitioning creative directors, and a new focus on the super-wealthy customers, at the expense of the aspirational middle class and Gen-Z youngsters who fueled growth before the pandemic.

“There is a lack of clarity for many of these brands. They are making attempts to regain focus. It is five, six brands under turn-around, big ones. This is not helping the overall excitement,’’ D’Arpizio told The Associated Press. “This is a supply-driven industry. When you have the brands really in tune with customer needs, it usually reacts quickly.’’

She said some “tweaks” are needed on strategy and price points, adding that “you can’t grow without the middle class and younger generations.”

Among major fashion houses, Gucci and Moschino have made runway debuts of their new creative directions, while the first Valentino collection by the new creative director hits the runway in September. Chanel has the position to fill after the incumbent resigned earlier this month.

While inflation is one element of price hikes, D’Arpizio said brands are also refocusing on the estimated 6 million to 8 million consumers at the top of the pyramid as they search for better profit margins. At the same time, there has been less rejuvenation in the offerings.

Steep price increases for items that don’t show significant innovation, and feel like something they have seen before, leaves customers “upset and puzzled.”

Flat global luxury sales forecasts follow a pent-up post-pandemic spending surge that pushed sales during the 2021-23 period up 24% over 2019 levels.

Last year, sales of personal luxury goods grew by 4% to 362 billion euros (about $388 billion) from 349 euros in 2022, due largely to a resurgence of U.S. and Asian tourism to Europe fueling purchases. Add in luxury travel, fine art, cars and yachts, the vast global luxury market expanded to 1.5 trillion euros last year — highlighting a trend toward experiences over tangible goods.

Japan is a bright spot as the return of foreign tourists with the yen at the lowest level to the U.S. dollar in 20 years, while Europe continues strong trends due to tourist spending and an increase in local consumption, especially in French and Italian cities.

China's rich ditch flashy luxury as global sales stall, says Bain

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A Supreme Court case upending how government regulators do their work thrusts Federal Reserve bank overseers into extended uncertainty and potential risk, although the ruling should not complicate the central bank’s ability to provide support to markets in times of stress.

I quit teaching to become a luxury-travel advisor. Since making the transition, I've learned a lot and grown professionally.

• Kaylee Stith left teaching to join The Travel Mechanic as a travel agent last year.
• Stith leveraged her organizational skills from teaching for her new role in travel advising.
• This article is part of " Trends to Bet Your Career On ," a series about trending professional opportunities.

Kaylee Stith is a travel agent at The Travel Mechanic , a luxury-travel agency in North Carolina. This as-told-to essay is based on a conversation with Stith, who left her full-time teaching job to become a luxury-travel agent last year. It has been edited for length and clarity.

Before I started travel advising, I worked as a middle-school special-education teacher in North Carolina.

I stumbled upon the travel-agent industry. I was following someone on Instagram who recently started her own Disney-specific travel agency. I love Disney, and when she announced that she was hiring an agent, I thought that would be a fun part-time job. I applied and made it through the first round. I didn't get hired, but I couldn't stop thinking about becoming a travel advisor.

After that, I started exploring on my own. I listened to podcasts about the industry and learned more from the American Society of Travel Advisors.

One day I was listening to " Trade Secrets ," a travel-agent podcast, when they interviewed Lauren Doyle, the president and owner of The Travel Mechanic, an agency based where I live in Raleigh, North Carolina. I filled out the form for prospective agents and interviewed, and I was offered a position on the team. I signed a contract on April 1, 2023, and left my full-time teaching role in June 2023.

Skills I transferred from my teaching career

Some of my skills transferred from teaching, like being organized and helping people. Because I came from a special-education setting, I was often the liaison between students and their teachers. Being a travel advisor is similar because you're connecting with your clients and interfacing with them.

But the transition was also a challenge, because I forgot what it feels like not to know what you're doing.

My dad is a commercial airline pilot, and I've been traveling my whole life and planning my own trips for a long time. I assumed I'd naturally slide into this role and automatically know how to do everything. But there's a lot to learn.

There were very practical things I had to learn, like how to use the customer-relationship-management system we put client information into, how to take payments, and how to make sure clients are signing off on the right terms and conditions — a lot of that was new to me.

How I make money as an advisor

I offer a complimentary consultation and discuss options with the client to ensure we're both a good fit. Then I charge a flat-rate planning fee. Some agents have a base amount, and depending on how complicated the trip is or how many people are going, they might charge more. Once the client pays the fee, I put their itinerary together.

I also make a commission on things like hotels and tour packages. Some suppliers will pay a decent commission; if you work on the higher end, you make a bigger commission. Commissions are usually paid out after the client has finished the trip.

Because I work with The Travel Mechanic, I get some leads, but I have to find most of them on my own. So a big part of this job is telling everyone I'm a travel agent. I'll mention it in conversations with people I meet because it's travel, it's fun, and people enjoy talking about that.

My clients have so far been in my circles. I've worked with several people from my church, friend groups, and family. Sometimes it's good to start with the people near you.

Have a niche when you're starting out

It's good to have a niche to present yourself as an expert in when starting out. My niches are Hawaii and the UK because they're what I know and love. My family loves Hawaii, and I've visited regularly since I was 9. I've also been to England many times. I studied abroad in college and lived in Bath for four months as a student.

The locations are similar in some ways because they're higher-ticket bucket-list destinations. They're also great destinations for first-time travelers who want to adventure out on a bigger trip but go somewhere that feels familiar.

Hawaii is still far away, but the driving and currency are familiar. Though England is also pretty far away, the language and culture are not that different from the US. Those are my two favorite destinations, and I do some Disney trips on the side.

Advice for prospective travel agents

Many people think this job is fun and relatively easy to get into. You don't need specific training, but it can be hard to get going. It's a marathon, not a sprint.

If you want to get into travel advising, I recommend starting part time or having another source of income before you get established and move to full time.

Also, do a lot of research. This will help you see if you're a good fit for the industry and find an agency you feel aligned with that will support you. If you're unsure where to start, visit Host Agency Reviews to research agencies near you.

While it's possible to go at it alone, starting with an agency is easier. Your commissions with an agency may be a bit lower, but an agency will offer advice and assist you when you're starting out with leads.

Lessons I've learned so far

I attended the annual Ensemble travel-agent conference in Las Vegas last year. I met with suppliers, tour operators, destination-management companies, and other agents. Everyone was welcoming and encouraging, which was a pleasant surprise. Because I'm an independent contractor, it'd be easy to think I'm competing with other people, but that isn't the case; there are enough clients to go around.

Also, I learned that it's OK that I'm not the perfect fit for everyone. I can be a perfectionist, but it's impossible to always get everything right. I had a potential client who contacted me about a honeymoon, and I felt like it was a great conversation, but she never got back to me. I couldn't stop thinking what did I do wrong? But I can't be the best fit for everyone. It's been a tough lesson, but I've learned and grown so much this past year.

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HK Mall Gets $1 Billion Upgrade With Help From Hermes, LVMH

• Hongkong Land partners with 10 brands to revamp Landmark
• Tenants like Chanel, Prada to have bigger, multi-story stores

Hongkong Land Holdings Ltd. and retail tenants including Hermes and Louis Vuitton will invest $1 billion to revamp the developer’s high-end mall in Hong Kong in a vote of confidence in the city’s luxury retail industry.

The plan to upgrade Landmark, Hongkong Land’s flagship retail space in Central, will create multi-story maison-style stores for 10 tenants, who will see their total shop space double, according to the landlord. It will include new restaurants.