Although inaccessible to international tourists due to state border closures and snap lockdowns in 2020, the performance of Versace’s Palazzo Versace Gold Coast in Queensland, the main luxury foodservice establishment, improved in 2021. The operator rolled out multiple initiatives during the year to attract local tourists to its three restaurants, Vanitas, Il Barocco Restaurant and Le Jardin, as well as the hotel.
The global halt in travel and the collapse in tourism in Australia in the year had a severe impact on experiential luxury, especially in the peak tourism months for luxury hotels in Australia. International travel restrictions, travellers’ health concerns over COVID-19 and economic downturn all contributed to the value decline in 2020.
High-end restaurants in Australia offered food events and special menus to forge stronger brand awareness and drive sales between 2020 and 2021, as snap lockdowns remained a feature of life in Australia. High-end foodservice operators found opportunities in events such as the SSIXX conceptual pop-up restaurant, offering customers a unique food-based experience combining technology, immersive art and top chefs in January and February 2021.
Overall experiential luxury is anticipated to continue to be challenged by uncertainty and the continuation of COVID-19 restrictions, including guest capacity, proof of vaccination, sanitising protocols and the usage of masks, as these make the experience less enjoyable. Luxury foodservice is likely to remain a niche in Australia, as demand remains limited to a very small number of upper-income consumers.
The competition from non-luxury yet experiential offerings such as micro-stay accommodation companies is increasing in Australia. More consumers in Australia are starting to look beyond material possessions and are instead choosing to spend their money on sensory experiences.
Some luxury hotel brands are showing confidence in expected recovery. For example, The largest W Hotel in the world is expected to open in Australia in 2022, as well as Capella Sydney and Queen’s Wharf.
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Understand the latest market trends and future growth opportunities for the Experiential Luxury industry in Australia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Experiential Luxury industry in Australia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
This is an aggregation of Luxury Hotels and Luxury Foodservice.
This report originates from Passport, our Experiential Luxury research and analysis database.
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