When it comes to luxury travel, Ignacio Maza, senior advisor for Signature Travel Network, is something of a guru. With his ear to the ground at all times, Maza is not just on top of luxury trends, but always looking to what is coming down the pipeline.
“I look not just at travel, but at other things that the affluent consumer is interested in,” Maza said. “So, I look at Sotheby’s and Christie’s for art. I look at Louis Vuitton Group, which is now the largest company in Europe by value, and at Richemont. I look at these different groups to see what’s happening there, because that might echo in travel.”
Those indicators are currently telling Maza that the luxury travel boom might finally start to ebb, following the nonstop demand and spending of the post-pandemic period.
“This year, Christie’s and Sotheby’s have seen a double-digit slowdown,” he said. “Some of it is due to the slowdown in China, but some of it is due to a softness in demand for luxury goods. This has surprised me, because luxury goods have been seeing a steady climb. Interestingly enough, demand for luxury travel continues. But at some point, are we going to be affected [by the consumer goods slowdown]? I don’t know.”
Maza cautions the industry as it moves into the new year, noting that “we need to make sure we don’t take the luxury consumer for granted” just because they have been reliable travelers (and remarkably high spenders) during the ups and downs of the past few years.
Following are more takeaways from a conversation with Maza during Signature’s 2024 Conference in November.
Looking back on the past year, what surprised you about 2024?
One of the things that surprised me is the resiliency of demand for travel that continued so strongly despite all the turmoil in the world, [including] the war in the Middle East, the war in Ukraine andthe uncertainty of the U.S. election — so many factors that normally would have held people back, and yet people continued to book for 2024, 2025 and 2026.
Another thing, and it’s really not a surprise, is the effects of overtourism that we’re seeing. Places like Venice, Barcelona, Rome and Santorini have had this tremendous demand, and now we’re bumping up against limits in some of those markets.
Tell us a little more about the luxury market in particular — is spending still strong across the board, or are we starting to see any changes?
At the upper end, the affluent are as affluent, or even more so, than they ever have been. The stock market is unbelievable, and the Dow [Jones] is at record levels. So certainly, there’s a segment [at the top] that feels very bullish still. But for other people, not so much.
There’s what we call “aspirational luxury” — somebody who is not a multimillionaire, but who makes a [strong salary] and for whatever reason, they want to splurge on a trip. And demand for that segment has certainly softened, no question about it.
If you speak to people from, say, Explora Journeys, Abercrombie & Kent or Sea Cloud Cruises, for example, their ships are filling top-down. It’s the biggest suites that go first, and then the space that fills later are the smaller staterooms.
What are some of the challenges that travel advisors might face in 2025, and how can they overcome these issues?
There are a lot of positives: The election is now behind us; the stock market is strong. But at the same time, we have challenges, such as how do we deliver popular destinations differently? How do we create a wonderful experience, even though [the client] is going to Rome in July? How can we deliver Tokyo in the middle of cherry blossom season in a way that’s going to work?
Are we going to have to work harder? No question about it, so that we can deliver something that is pleasant, meaningful and memorable in a time of great demand on constrained resources.
I think we need to listen and learn, attend seminars, come to conferences, read and engage with all the new product that’s coming out, because it can really widen your horizons and give you new opportunities to sell to clients. The world is getting bigger, and new air connections are opening up a lot of possibilities for new places. We need to think about how we get customers to be more adventurous and explore other places.
We need to think about how we get customers to be more adventurous and explore other places.
What might some of those areas of untapped opportunity be right now?
I’m excited by destinations that are emerging — Sri Lanka, for example. Sri Lanka had a horrible economic crisis a couple of years ago and … there were times when tourism pretty much came to a halt. Now, that all has been resolved, and their [tourism product] is growing. I’m going there in January.
Eastern Europe is a great area of opportunity. For example, I was in Romania a couple of years ago and I was absolutely blown away by the physical beauty and the value. You can stay in a wonderful hotel in Bucharest paying one-third of what you would pay in Italy. And there’s history and outdoor adventure. But who thinks about Romania?Which is why we have to think up and out and be more creative.
Are there any emerging trends that advisors should be tapping into?
Solo travel grows year after year. I think we’re going to see continued growth in that area, led by women. It’s mostly 60-70% women. So now, we’re seeing [companies] devote more effort to solo travelers … and women-only trips. I was on Silversea, and every single night there was a reception for solo travelers, and there were 23 solo travelers on the voyage.
[Solo travelers] are intrepid. They want to see the world. They’re not waiting for the perfect convergence of when their friends or family can travel. They’re just going off, which is great. And 30% of all households in America are now one person. In New York, it’s 50%. And nobody’s really speaking to this market. So, for me, it’s a huge opportunity.
I always advise travel counselors to think like a financial planner.
What other advice do you have for travel advisors?
I always advise travel counselors to think like a financial planner. And what I mean by that is, when you go to Fidelity, you just don't say, “I want to buy 1,000 shares of the PIMCO Pacific Fund.” They sit down with you. Who are you? Where are you now? Where are you going? What is your plan? They look into the future.
For our clients, we have to do the same. “Oh, you have a big birthday coming up next year? We have to think about that and start planning.” Or, “Your son is graduating from high school.” What's coming down the pike, what's important to them? Then, create a travel plan for the future. Make sure that you do all those celebrations, and you do them in a great way.
