Big luxury brands like Hermès (RMS.PA), Tapestry (TPR) and Ralph Lauren (RL) reported financial results this week that suggest the effects of the pandemic are behind them. Travel, another luxury sector, could soon see a boom.
Amanda Frazier, president of ratings for Forbes Travel Guide, joins Yahoo Finance Live to discuss the rise of luxury travel and experiences. “2024 is predicted to be as big of a boom as 2023,” Frazier said, predicting a similar outcome for premium travel.
Frazier points out that people who pay premiums generally want a “smooth trip,” an experience that allows travelers to plan less and do more. Frazier sees “a lot of activity” among luxury travelers in the southern U.S. due to increased domestic travel and the rise of luxury hotels in cities like Nashville and New Orleans.
Frazier noted that demand appears to be strong in the Middle East despite geopolitical tensions, with travelers frequenting Dubai. According to Forbes Travel Guide, the most “Instagrammable” hotel is the Waldorf Astoria Los Cabos Pedregal, which Frazier notes is a “beautiful destination.”
For more expert insights and the latest market trends, click here to watch the full episode of Yahoo Finance Live.
Editor's note: This article was written by Ike Ntekim
video transcript
[AUDIO LOGO]
Julie Hyman: This week, Hermès, Tapestry and Ralph Lauren all released their financial results, providing a positive outlook for the luxury goods sector. With the pandemic in the rearview mirror and China boosting demand, all companies are hoping for increased revenue. The other half spends money on things, but what about travel? Our next guest thinks we'll see an uptick there as well.
Enter Amanda Frazier, president of ratings for Forbes Travel Guide. By the way, Forbes announced his top 6 candidates for 2024. Thank you very much for your participation. So what trends are you seeing? How are wealthy people spending their money on travel?
Amanda Frazier: Hello. Thank you for calling me. A great way to start your weekend. As you know, this past 12 months has been a busy year for him to travel.
And we have a really busy year ahead of us. It is predicted that 2024 will be as good as 2023. And people will continue to pay premium prices when it comes to luxury goods. But what everyone is talking about is that the experience exceeds their expectations.
So our list aims to cut through the clutter of online opinions. And some of the trends we're seeing are really smooth travel. So I think there's going to be a lot of focus on accommodations that offer an all-inclusive experience – accommodations that can give you everything you need without having to think about any additional planning on top of all the planning required to book. Masu. Travel, and obviously arrive at the destination you are trying to go to.
Josh Lipton: And Amanda, one of the really interesting trends you pointed out was how the American South has become so popular with luxury consumers and travelers. What exactly is happening there?
Amanda Frazier: Throughout Nashville, Charleston, and New Orleans, you'll find some great accommodations performing at a great level and plenty of activity. Nashville is home to the acclaimed Conrad. The Hermitage Museum was recently renovated and is now complete. It has been added to the list. There's a Four Seasons in New Orleans.
In other words, the South performs very well against luxury standards. There has also been a significant increase in domestic travel to destinations that have really started to increase throughout the pandemic. I think people were looking for a destination that was easy to drive to.
And when they started going to resorts on the East Coast and West Coast, we really started to see that those destinations were also paying attention to their infrastructure and really starting to invest in more hotels. A lot more is opening up, and so are airports. So these are really easy destinations to go to. We're in a great location, especially in the South, close to Atlanta.
Julie Hyman: And we're also seeing strong demand in the Middle East, although geographically it's a very different place, which is particularly interesting right now. Obviously, there is a war going on in Israel and Gaza in the Middle East. So is it affecting demand at all, or are people simply avoiding those areas?
Amanda Frazier: I'm taking a detour. So, there's a lot to be gained in the Middle East from this year's results. And we actually started seeing this trend pretty early on, especially when we started seeing the performance in Dubai.
For those who have never been to Dubai, it is an incredible city. The weather is wonderful. It is beautiful. The culture is wonderful. This year he is joined by 20 new awardees from Dubai in the region.
And in the Middle East in general, even the Waldorf Astoria in Kuwait, which is now a double five-star hotel and spa, is doing a great job. And it's really a place to go, especially in the winter. Therefore, they have a perfect winter climate.
Josh Lipton: And Amanda, you also prepared the most Instagrammable hotel for us, Amanda. Which one is it and why?
Amanda Frazier: The most Instagrammable, the most Instagrammable, those are difficult words. This is the Waldorf Astoria Pedregal in Los Cabos. So it's in Cabo. Great hotels, beautiful destinations, amazing staff, and a beautiful leadership team who are passionate about providing an upscale experience for our guests.
Josh Lipton: Amanda, I'm sold. Let's make a reservation. Amanda, thank you so much for joining us. Have a nice weekend.
Amanda Frazier: you're welcome. Thank you for calling me.
