Beyond Affordability: How Premium Drives Value in Travel

Delivery

This report comes in PPT.

Key Findings

The challenge for the travel industry is clear

Even as global booking sales are expected to finally rebound to their pre-pandemic levels, travel businesses are facing the dual challenge of rising operational costs and margin pressures. Discounting may drive volume in the short term but, as a strategy, it is proving unsustainable, eroding profitability without necessarily building long-term loyalty.

Travellers want more for less, and will pay for the right thing

Consumers are more selective with their spending, but are not frugal. Instead, they are willing to trade up for travel features that feel meaningful, unique and worthwhile – whether it is ease, emotional reward or alignment with their values.

Premium in travel is being redefined

Premium is no longer about price, space or exclusivity. Today’s travellers define premium through emotional relevance, personal fit and time well spent. Winning brands are delivering affordable, elevated and meaningful experiences, not necessarily expensive.

Traveller insight is a strategic advantage

Understanding traveller types and their mindsets – such as the Leisure Seeker, Adventure Lover or Wellness Worshipper – is key to targeting spend, designing offers and driving loyalty. Businesses that personalise based on intent, not just demographics, unlock stronger margins from the mid-market.

Predictive personalisation will define the next generation of travel

The shift from reactive service to anticipatory engagement is already underway. Brands like JetBlue and Airbnb are showing how AI and behavioural data can deliver timely, tailored experiences that boost satisfaction, operational efficiency and long-term loyalty.