Pulse of the Industry 2026
Earlier this year, I wrote about what I saw as the new test for luxury travel: Is it worth it?
Demand remained strong, but high prices, unpredictable flights, global instability, uneven service, and the accumulating friction of travel were making even the wealthiest clients more selective. The desire to travel had not diminished. But travelers were thinking harder about whether an experience would justify the money, time, and effort it required.
The results confirm the fundamental shift in how affluent travelers evaluate luxury — and in what the industry must deliver to earn their business.
Welcome to the confidence economy.
DEMAND IS STRONG. CONFIDENCE IS CONDITIONAL.
Nearly two-thirds of the luxury travel executives we surveyed expect revenues to rise this year, and 56% say bookings are pacing ahead of the same point in 2025.
But only 23% describe clients as spending freely with little hesitation. By contrast, 58% say clients are spending strongly but more selectively.
Our findings align with other recent research. Virtuoso’s 2026 Luxe Report, based on responses from more than 2,400 advisors around the world, found that luxury travelers remain willing to spend more but are increasingly mindful of rising costs and seek value that enhances the experience. Virtuoso concluded that this makes the relationship with a trusted travel advisor more essential.
American Express Travel’s 2026 Global Travel Trends Report points to the same combination of resilient demand and greater intentionality. Eighty percent of respondents plan to take the same number or more international trips this year, even as travelers become more thoughtful about how they spend their vacation time.
The appetite for travel remains robust— but time, money, and trust are being allocated more deliberately. The question is no longer simply whether clients can afford to travel. It is whether they feel confident that the experience will be worth it.
VALUE HAS BECOME EMOTIONAL
Perceived value is the leading consideration before booking, cited by 58% of respondents. Overall price matters, but it ranks considerably lower, at 34%.
That distinction is important. Luxury travelers are not necessarily looking for something cheaper. They want to feel that the price is fair, transparent, and justified — and that they will be recognized, respected, and cared for from beginning to end.
The motivations behind travel reinforce that emotional calculation. Dream and bucket-list experiences lead at 64%, followed by family time at 58%, ease and seamless execution at 53%, and emotional meaning or connection at 36%.
Clients are not merely buying rooms, flights, or itineraries. They are buying an emotional return: the anticipation of something meaningful, the reassurance that it will be handled well, and the confidence that the experience will compensate for the effort of getting there.
THE CONFIDENCE ECONOMY IS RESHAPING DEMAND
The strongest segments tend to solve for significance, simplicity, or both. Luxury leisure remains dominant, cited by 97% of respondents, followed by ocean cruise at 42%, multigenerational travel at 36%, safari and wildlife travel at 30%, river cruise at 25%, and expedition cruise at 23%.
Cruise is particularly well positioned in the confidence economy. Its ability to reduce decisions, simplify logistics, and bring multiple destinations into one controlled experience speaks directly to clients who want discovery without unnecessary friction.
Italy and Japan remain the strongest destinations, combining emotional appeal with confidence in their hotel product and tourism infrastructure. But interest is also widening toward Northern Europe and Scandinavia, South and Central America, Africa, and a broader range of Asian destinations. Clients want places that feel fresh and personal, but not needlessly risky or difficult.
The brands advisors admire most tell a similar story. Four Seasons, Rosewood, and Belmond lead the hotel rankings, while Explora Journeys, Regent Seven Seas, Silversea, and Ritz-Carlton Yacht Collection top the cruise list. Distinctive identity matters, but so do consistency, service reliability, and advisor trust.
AI IS INFORMING CLIENTS — BUT NOT REASSURING THEM
Clients are doing more research before approaching an advisor. Eighty-six percent of respondents say clients are using AI and other digital tools for destination research, 67% for itinerary ideas, and 34% to draft plans before seeking professional guidance.
More information, however, does not necessarily create more clarity.
When a trip is complex, expensive, or emotionally important, clients still rely on advisors for judgment, taste, context, advocacy, and problem-solving. The advisor’s role is evolving from trip planner to confidence broker.
Suppliers are part of that confidence chain. Hotels, cruise lines, airlines, destination management companies, tour operators, and ground partners all influence whether an experience feels seamless or stressful, generous or transactional, worth it or disappointing.
THE NEW LUXURY MANDATE
The confidence economy presents a clear challenge to our industry. It is no longer enough to inspire the trip. We must also reduce the uncertainty surrounding it.
That means making the value clear, the logistics smooth, the service consistent, and the client feeling known. It means communicating quickly and honestly, supporting advisors, and responding gracefully when something goes wrong.
The winners will not be those that promise a friction-free world. They will be those that make clients feel protected, respected, and understood when friction inevitably arises.
You can read the complete Pulse of the Industry Survey 2026 here.
Do these findings reflect what you are seeing? How is your organization building confidence with clients and advisors?