New research from Arival reveals a growing divide in travel spending between affluent and middle-income travellers. The Affluent Traveler report shows that wealthier travellers, especially younger ones, are spending more, while middle-income groups are cutting back.
Key findings from the report include:
Young affluent travellers lead the way: Travellers aged 18 to 44 make up two-thirds of affluent travellers and drive most of the bookings and spending, especially on activities. They spend nearly US$5,000 per trip on average.
Spending gap widens: Middle-income travellers spend an average of US$3,597 per trip, while lower-income groups spend US$2,305.
Middle-income travellers retreat: This group, once the backbone of the industry, has reduced its spending significantly. Middle-income households now represent 51% of travellers, down from 58% in 2019.
Affluent surge: Households with incomes over US$150,000 now account for almost half of spending on tours and activities, despite being just 20% of all experience travellers.
Douglas Quinby, co-founder and CEO of Arival, said, “The rise of the affluent traveller and the pullback of middle- and lower-income travellers may be more than just another economic cycle. It could signal a bigger, long-term shift with major implications for our industry.”