A trip to Vietnam has become more of a status symbol than a Rolex as today’s well-heeled consumers put greater emphasis on experiences such as travel and fine dining than on material things.
This shift in priorities is a key finding in a report American Express recently released to mark the 20th anniversary of its platinum credit card.
“Twenty years ago, the affluent lifestyle was focused on having and obtaining more material things, but the ‘new’ luxury paradigm finds affluent consumers pursuing new life experiences,” said Pam Danziger, author of the book “Why People Buy Things They Don’t Need” and president of Unity Marketing, which conducted the American Express Platinum Luxury Survey.
According to the survey of 870 consumers with household incomes of $100,000 or more, 59 percent receive the greatest personal satisfaction from experiences. After fine dining, travel was the most widely enjoyed luxury experience, followed by entertainment, cultural/arts events and sporting events.
More than two-thirds (68 percent) of affluent consumers took an average of six personal trips in the past year and spent an average of $12,650 on personal travel. The majority (56 percent) said creating memorable experiences was the most important vacation criteria.
Almost half (45 percent) sought help from a travel agent, personal concierge or other personal assistant to take advantage of VIP programs, gain insider access to special accommodations or obtain exclusive amenities.
The majority of those who put emphasis on experiences want to get to their destination in the most inexpensive way, with 65 percent saying they always or often fly coach. When they arrive at their destination, however, they splurge on hotels. Sixty-four percent always or often stay in luxury hotels.
A majority (79 percent) of well-to-do consumers consider fine dining the No. 1 “experiential luxury” they’ve enjoyed over the past year, at home and on vacation.
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This doesn’t surprise Kerry Stegeman of Atlanta’s Sterling Travel, a part of the Virtuoso network of 285 upscale travel agencies worldwide.
“I have clients who will spend as much to dine at a Michelin two-star restaurant in France as they will on their hotel accommodations,” Stegeman says.
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Edited by Cara DiPasquale ([email protected]) and Kris Karnopp ([email protected])