by Bert Archer
Last updated: 4:05 PM ET, Mon October 27, 2025
Something Eva Damato said to me in Opatija earlier this week has got me thinking differently about luxury travel.
We were at the Travel Leaders Network International Luxury Forum, hosted for the second time in a row by Croatia, and talking about luxury travel in general, when she mentioned the one big thing she thought distinguished high-end travel from the rest of the industry.
(Photo Credit: Bert Archer)
“We don’t see it often hit as many highs and lows as you do mass travel,” she said, “It’s something global economy can trust to be a bit more steady and be an economy that they can rely on.”
And it’s not just her saying so. According to Morgan Stanley Research, in the United States the luxury hotel segment recorded year-over-year RevPAR growth of about 4 percent, while the economy segment declined by roughly 3 percent. STR data, cited in an industry commentary, forecast that in 2025 luxury hotels will see about 3.9 percent growth, while economy properties may fall by around 2.2 percent. An article in HotelManagement-Network likewise notes that affluent travellers are “lifting luxury hotels as others falter.”
It’s not just about the big bucks (and the high commissions), it’s about stability in an industry we know only too well can take massive hits from the most unexpected places.
Travellers who do not save up every year to take their trips, who will travel whether employment stats are up or down, whether the stock market is bullish or bearish, and even when the rest of us are in lockdown, can keep basic elements of the industry and infrastructure going when times are tough.
Several advisors I spoke to at the forum, all of whom needed a minimum US$1 million in annual sales to qualify to attend, told me a version of the same thing : when the rest of us cut back on our travel, the wealthy simply alter their plans, swapping out first for business or putting the kids in premium economy, dropping from a five-star to a four-star hotel, renting cars instead of hiring drivers, etc.
This means a few things. For one, advisors like Kyle Oram, Lola Vassiliadis, and Devyn Perry, the three Canadians who attended the forum, are obviously doing god’s work.
But it also means that how we deliver luxury experiences matters a great deal. If these people fall out of love with travel, we’re screwed.
We all like our amenities and our perqs, and we’re all aware of which ones we’re giving up to save money when we have to. But for the people who tend not to make that kind of trade-off, who pay full price, whether it be for air or accommodation, we shouldn’t be trading anything away for them.
The airline industry clearly got the memo and is investing heavily in new, expanded, and refurbished premium cabins (sometimes at the expense of the economy experience, but ‘twas ever thus).
But I’d argue hotels have yet to realize what it is exactly they’re meant to be delivering.
Check out part two — What Hotels So Often Get Wrong About Luxury.
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