Luxury travel sector to be worth $4.8 trillion by 2032, IHG boss predicts

IHG Hotels & Resorts’ vice-president of global luxury brands believes there is “no better time to be working in the luxury sector” as the industry is predicted to be worth $4.8 trillion by 2032.

Speaking at Aspire’s Leaders of Luxury conference on June 12, Tom Rowntree said the group has seen research that forecasts significant growth for the industry.

“The sector is growing,” he said. “We see that in the amount that consumers are travelling, we can see it in the number of hotels that are opening in major destinations around the world. It’s a great industry to be working in.”

Rowntree says a key driver of this growth is wellness travel, something that’s “core” to the group’s strategy.

“We’ve got a responsibility to make sure that we’re continuing to evolve at pace with consumers, or ahead of consumer pace,” Rowntree said. “We have what we call a ‘wellness innovation team’, so we are constantly looking at an innovation agenda in wellness, but not innovation for the sake of innovation.”

He said the group is currently prioritising longevity, as well as working on a pilot programme centred around women’s health.

Rowntree also emphasised the importance of travel in general and how it aids wellbeing.

He said: “The one thing that people are not willing to let go of is their right to travel, because it’s good for us. It’s good for us to reconnect back with ourselves, with our families, with our loved ones.

“And there is nothing more central to wellbeing than travel.”

The vice-president also cited multigenerational travel as a key driver of industry growth, calling it “super exciting”.

He said: “Without a shadow of a doubt, [multigenerational travel] is what’s driving our industry further forward. But it means that all of us need to be on our A-game in terms of being able to pivot and meet the needs of multiple generations.”

To meet these needs, Rowntree said IHG has seen the role of villas in its resorts become “far more important than it ever was previously”.

Villas allow space for families to come together but also account for the accessibility needs of older generations with features like ground-floor bedrooms, which Rowntree said is “absolutely key”.

Looking ahead to the future of the sector, Rowntree said he is “confident” the industry will keep its momentum, as “all the forecasting and data shows we can”.

“Travel is absolutely mainstay to the way people live their lives and long let that continue,” he said.