Affluent millennials more willing to spend on luxury experiences, report says
IN a new study discussed at The New York Times Luxury Travel Conference in Singapore, Amrita Banta, managing director of Agility Research & Strategy, revealed new findings that showed young, affluent Asians are more willing to spend on luxury experiences compared to luxury goods.
Millennials were found to be more drawn to key purchases that would enrich their travels such as airline tickets and hotel accommodation.
For instance, 78 percent of South Korean millennials are more likely to travel abroad while only 37 percent will fork out for a luxury item. Similar sentiments were apparent among Taiwanese, Hong Kong, and Malaysian millennials.
Despite millennials being less likely to purchase luxury items, shopping still featured as one of the more popular travel activities among Singaporean millionaires.
Other activities rich Singaporeans indulged in while overseas include skiing, dining, sports, diving, water sports, gambling, and spa sessions.
Banta said, “Asian millionaires are becoming more adventurous in their travel choices and they want to explore new things they’ve never experienced before, so it would make sense that skiing is high on the list.”
With the increasingly popular skiing markets in Japan, large numbers of rich Asians are expected to visit slopes like Niseko in the coming winter months.
The report added that these findings could open up new markets and opportunities for luxury ski lodges, food and beverage outlets, as well as capitalize on luxury winterwear.
On top of that, it was revealed that wine tasting is slowly but surely becoming a top hobby among Asian millionaires. For example, fine dining and wines fared better as a pastime in China compared with activities such as tennis and golfing.
The study concluded that both Asian millionaires and millennials are ripe markets that will contribute to a bright future in Asia’s luxury travel sector.