Is Luxury Travel Dead?
March 26, 2010 in George's Observations by George

I read this week that the Four Seasons Maui is now in default. Wow. This popular Maui resort has a very loyal following. Yet, even with the big name a great reputation and the beautiful beaches of Maui, it was unable to avoid bankruptcy. Does this event and other high-end hotel defaults indicate that luxury travel is dead?
Dead no, but changing yes. People want nice, but are looking for value. The Four Seasons Maui averages $425 per night plus taxes. You can feed a family of four for almost a month for the same amount as one night at the Four Seasons Maui. Stay for seven nights and throw in airfare for four at $500 a ticket and you have spent over $5k before buying food and optional tours.
People will always want the nicest they can afford. However, there has been a paradigm shift in how people view opulence and luxury.
- Deluxe is in.
- Opulence is out.
- Best value is in.
- Extravagance is out.
Big spenders? Not anymore. Consider that the average amount of money people gambled with in Las Vegas was a mere $580.
Purveyors of leisure escapes that recognize value for the dollar is the key to success will prosper. People who cling to the belief that people will blow money on opulence will continue to dwindle.
George
