If change is as refreshing as a vacation, then the high-end travel sector is poised for transformation. In anticipation of the premiere of Binge’s upcoming real estate reality series, Billion Dollar Playground, Luxico co-founders Alexandra and Tom Ormerod offer their insights into the future of tourism.
High-end travel has transformed dramatically over time. Previously accessible solely by the elite class, this sector has experienced rapid growth recently, shifting from an unattainable aspiration to a massive worldwide market worth billions of dollars, with projections showing continued expansion.
information from the global research company McKinsey
indicates that the market for luxury tourism and hospitality is anticipated to expand more rapidly than any other sector within the coming ten years, increasing from a $239 billion industry in 2023 to an estimated $391 billion sector by 2028.
However, contrary to popular belief, the swift increase in luxury travel expenditure isn’t solely due to extravagant items like champagne and caviar. The Ormerods, who founded the Australian-based Luxico which specializes in hotels and travel experiences, assert that changes are underway within the sector. They point out that tourists, whether from home or abroad, now place greater importance on forging significant relationships rather than focusing exclusively on top-tier facilities.
Australian travellers are reshaping the concept of luxury tourism by moving away from an emphasis on material abundance towards more significant, thoughtfully crafted encounters,” clarify the married couple. “This shift means it’s not merely about opulent facilities anymore; instead, it revolves around forging connections, embracing genuineness, and understanding the narrative woven into each location.
New Luxury
After starting their venture in 2013, the Ormerods have seen up close how preferences shift and what people find interesting changes over time. With their growing collection of 200 high-end properties around the world, travellers now seek engaging experiences more than lavish amenities. Today’s visitors aim to forge enduring recollections tied to the essence of these places instead of seeking excessive luxury that could be found elsewhere.
According to Alexandra, the aim isn’t primarily to go toe-to-toe with high-end hotel brands, but instead to provide an extraordinary experience—be it a quiet respite, a stunning vista, or a deep dive into the surrounding cultural ambiance.
Location is crucial—it all begins with premium spots that attract many visitors, allowing them to fully engage with the finest aspects of their environment,” explains Alexandra. “Amenities such as pools, breathtaking vistas, or smooth transitions between indoors and outdoors are important too, yet what really distinguishes a place is something less tangible—the essence of a home, its capacity to inspire and comfort guests simultaneously.
Luxury hinges equally on how things appear and on their actual delivery. Even though the essence of luxury can be seen through elegantly designed spaces and seamless encounters, in truth, it involves a highly detailed process happening backstage.
Billion Dollar Playground
The cloak of anonymity is about to be removed as Alexandra and Tom are scheduled to appear in BINGE’s upcoming reality show focused on real estate.
Billion Dollar Playground.
Shot at various Luxico locations, this series delves into the genuine difficulties faced when meeting the high standards set by ultra-luxe customers and the efforts of Luxico’s devoted staff—concierges, chefs, and housekeepers—who strive to meet these demands.
Our team puts in relentless effort to make sure each element is flawless, whether it’s handling urgent requests at short notice or overseeing intricate operations,” say the Luxico founders. “The essence lies in being prepared—foreseeing requirements prior to their emergence and maintaining an unwavering dedication to quality.
Billion Dollar Playground
demonstrates this equilibrium, providing audiences an insight into the craftsmanship and labor involved in crafting memorable experiences for our visitors.”
As the CEO, Alexandra is available to mentor her highly skilled team in achieving ‘the extraordinary,’ providing services ranging from private jets and luxury cars like Ferraris to personalized dining experiences and entry into select restaurants.
A decade back, such requests could have appeared lavish, yet now, they mirror the transformation luxury has undergone,” she clarifies. “The focus isn’t on what exists anymore; it’s all about exploring what can be achieved. We aim to turn these aspirations into actuality, effortlessly and with extraordinary meticulousness.
Luxury Travel Trends
As the high-end travel sector is expected to flourish over the coming ten years, now is an ideal time for Luxico. Having embarked on this venture a decade ago, Alexandra and Tom Ormerod currently stand at the forefront of luxury travel’s evolving landscape, characterized by accessible experiences instead of conventional grandeur.
Ahead of the
Billion Dollar Playground
At the premiere, Alexandra and Tom discussed their insights into the future of luxury travel and highlighted how experiential-driven tourism is currently driving growth within the sector.
Quiet Luxury
In the past five years, the significant growth of ‘quiet luxury’ or ‘stealth wealth’ has been extensively recorded.
Television series such as
Succession
and
The Perfect Couple
has shifted the focus towards the genuine essence of luxury, and these changes have ultimately impacted the travel industry. According to Alexandra, understated luxury, though perhaps not an entirely novel concept in travel, is expected to be predominant in this sector for many years ahead.
“For me, ‘quiet luxury’ embodies refined subtlety — a kind of luxury that speaks softly instead of loudly,” she explains. “It’s the modest grace found within meticulously arranged environments, the comforting touch of deliberate touches, and the delight in moments that feel both personal and exceptional. Crafting a distinct atmosphere lies at the core of our mission.”
From a statistical standpoint, the views expressed by the luxury travel specialist hold significant weight. Despite the impact of the COVID-19 travel restrictions and amid a severe cost-of-living crisis, the luxury travel sector continues to defy expectations. This upward trajectory is largely driven by a rising economic force.
According to the McKinsey report, 35 percent of total expenditure within the rapidly growing $239 billion sector came from travelers whose net worth ranged from $100,000 to $1 million.
Unsurprisingly, the affluent class still accounted for around two-thirds of the market, with ‘ultra-high net-worth’ spenders (net worth in excess of USD$30 million) doing the heavy lifting, but the underlying theme is undeniable: travellers are increasingly prioritising depth over breadth.
Slow Travel
Alexandra forecasts that as attention shifts towards location, ‘slow travel’ will gain traction in the coming years. Travelers are expected to adopt a more thoughtful attitude towards their journeys, focusing on a richer interaction with both the locale and its residents.
Although popular tourist attractions and picture-perfect spots will still have their place, a travel expert advises that mindful exploration will become increasingly important, especially when visiting lesser-known destinations.
Over the coming five years, we expect an increase in slow travel, where trips focus more on significant experiences instead of jam-packed agendas,” states Alexandra. “At Luxico, we’re responding by crafting encounters tailored to these preferences, such as longer visits and customized plans that highlight the local culture.
Sustainability
Sustainability will increasingly take center stage as travelers opt for environmentally friendly choices that resonate with their beliefs. According to Ormerod, nature-restorative interactions, climate-aware engagements, and backing of local communities will be key factors shaping travel decisions over the coming years. Indeed, this trend is already underway.
“During the last half-decade, there has been an increasing focus on sustainability and biophilic design — environments that link individuals with nature via organic elements, natural illumination, and vegetation,” she explains.
“We’ve seen a move towards versatile areas that can be adjusted based on modern living and working habits. In the future, I anticipate an increased emphasis on designs centered around well-being, featuring components such as meditation rooms, bathroom amenities inspired by spas, and tranquil outdoor zones. Luxury will keep transforming to mirror individual health and ecological awareness.”
Personalisation
When it comes to luxurious getaways, what sets an excellent vacation apart from a truly remarkable one frequently boils down to individual preferences. It’s clear now more than ever, customisation defines the latest trend, allowing visitors to craft distinctive, exclusive adventures. Notably, even platforms like Airbnb have embraced this movement, introducing updates such as their enhanced ‘Experiences’ option alongside a fresh ‘Services’ section. According to Ormerord, these tailored choices enable tourists to create enduring recollections and gain benefits for being loyal customers.
She mentions clients are now seeking out extraordinary experiences such as private chef dinners in secluded spots, special entry to fully booked events, or tailor-made trips featuring luxury amenities like personal yachts and helicopter shuttles.
To address this growing demand directly, Luxico has launched two exclusive membership levels. These allow travelers to craft their ideal getaway from scratch. The Stay Beautiful Membership provides benefits such as priority reservation options, free enhancements, and bespoke concierge services—designed to make sure each aspect of your trip is meticulously planned ahead of time.
At the opposite extreme, the Stay Exclusive Membership offers an entirely personalized experience. Members gain entry to private villas, personal staff for their homes, customized provisions for food and drinks, along with specially curated experiences. This initiative aims at tapping into the market more broadly, potentially turning this concept into a multibillion-dollar venture.
As the high-end travel sector experiences a significant shift, elements like exclusiveness and customisation are gaining even greater importance. Travelers now yearn for deeper relationships with locations, locals, and traditions. This change signifies not only shifts in how consumers act but also a wider cultural reassessment of what constitutes living and traveling gracefully.
As trailblazers in the high-end villa rental industry, we’ve played a key role in defining contemporary luxurious travel experiences in Australia,” Alexandra states. “Our approach isn’t merely reactive to trends; instead, we’re setting new standards by reinventing luxury as an intensely individualistic, purposeful, and life-changing concept.
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