In the first half of 2020, the COVID-19 pandemic brought economies and travel and tourism to a standstill, moving east from China and Asia Pacific, spreading to Europe and the Americas to effect over 180 countries worldwide, ushering in travel bans, grounded aircraft and lockdowns around the world. According to the UNWTO, 100% of destinations imposed some form of travel ban or restrictions in 2020, with 60% still in place at the end of July 2020.
Versace SpA’s Palazzo Versace Gold Coast in Queensland, the main luxury foodservice establishment, remained inaccessible to many affluent consumers wishing to dine there due to state border closures despite the hotel’s reopening offers of AUD275 and above per night. Furthermore, the hotel laid off 200 employees during lockdown at the end of March 2020 as the hotel did not have enough money to pay employees their entitlements as well as temporarily closing its Facebook page while it was closed for a second time for renovations later in the year.
Hotel bookings, and especially luxury hotel bookings, were negatively impacted by the pandemic, particularly in busy cities such as Sydney and Melbourne in 2020. As regional tourism by locals increased in Australia there was an increase in demand for hotels in regional areas as city dwellers sought experiences for short getaways.
The pandemic impacted experiential luxury negatively in 2020 and the category is not expected to recover over the forecast period mainly due to a decrease in disposable incomes and an increase in unemployment. Australians and incoming tourists are likely to have lower budgets allowing them to rather stay in mid-priced hotels or Airbnb accommodation.
The luxury hotel industry’s operators is expected to decrease prices and increase the use of promotional offers and special offers to tempt customers back as these hotels will continue to struggle as a result of border closures over the short term. Experiential luxury is predicted to gradually recover when international borders open as people will continue fearing to travel before the pandemic stabilises and people get vaccinated.
Competition from non-luxury yet experiential resorts and experiences such as glamping is gaining popularity in Australia. More consumers in Australia are starting to look beyond material possessions and instead choosing to spend their money on sensory experiences.
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
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 report originates from Passport, our Experiential Luxury research and analysis database.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Home Page