Bluxury: The New Horizon of Luxury Tourism

In recent years, the tourism sector has witnessed the emergence of an intriguing trend known as “Bluxury“, a term coined from the fusion of the words “business” and “luxury“. This amalgam symbolizes the convergence of the corporate and luxury worlds, allowing business travelers to enjoy the amenities and exclusive experiences of luxury tourism while attending to their professional commitments.

The essence of Bluxury lies in the opportunity to dedicate time to personal enjoyment during a business trip, which has particularly resonated among ‘millennials’ and digital nomads, who value both flexibility and personalization in their travels. This is evidence of an evolution in the expectations of modern travelers, who seek more than a simple stay in a luxury hotel; they long for an enriching experience that balances work and pleasure.

One of the propellers behind this trend is the phenomenon known as “revenge travel” (vengeance travel), where individuals, after having saved during the travel restrictions of 2020 and 2021, are investing in more exclusive and memorable trips. Additionally, the inclination towards personalization and exclusivity has redefined what luxury means in tourism, moving beyond merely visiting premium destinations to offering unique and personalized experiences.

On the horizon of 2023, it is anticipated that Bluxury trends will evolve even further. Sustainability, for example, will continue to be a priority, with luxury travelers willing to invest in trips that are not only indulgent, but also responsible and beneficial to local communities.

Bluxury, by merging the best of the business and luxury worlds, is not only redefining the expectations of business travelers but is also reconfiguring the luxury tourism industry, promising a future where work and pleasure coexist in perfect symbiosis.

Why is it growing so much

The bluxury trend in luxury tourism is experiencing notable growth, driven by various factors and emerging trends in the global tourism sector. Below are some of the highlights on how this trend is growing:
1.Increase in Demand for Personalized Services and Unique Experiences:
The demand for a high level of comfort and personalized services, as well as the search for unique experiences and authentic destinations, is driving the growth of luxury tourism. Travelers now crave exclusivity, sustainable travel, and experiential journeys, which are expected to drive the market in the future.

2. Growth of the Luxury Tourism Market:
A substantial growth is foreseen in the luxury tourism market, with an expansion of USD 703.14 billion from 2023 to 2027, accelerating at a Compound Annual Growth Rate (CAGR) of 11.5% during the forecast period. This growth is attributed to factors such as the increase in disposable income, the presence of numerous exotic destinations, and a growing demand for personalized vacations.

3. Rise of the Asian Middle Class:
A study revealed that the luxury tourism sector has the potential to grow from 170 to 520 billion in the Old Continent from now until 2030-2035, thanks in part to the rise of the Asian middle class, especially in countries like China, Hong Kong, India, and Malaysia.

4. Increase in Luxury Travel among Affluent Individuals:
Luxury travel, defined as those carried out by individuals with net assets of over $1 million and who spend an average of $2,400 each travel day, is expected to grow at a 7.3% annually until 2025.

5. Trend of Micro Trips and Villa Stays:
The trend of micro trips, which are short and swift getaways, is on the rise, especially among high net worth individuals (HNIs). Many of these getaways focus on wellness resorts and villa stays in exclusive and stunning locations.

6. Impact of the Pandemic:
The pandemic devastated the tourism industry, but now people are opting to travel with a “vengeance”, as we mentioned before. The inclination towards exotic experiences and an increase in spending by the middle and upper classes are driving the growth of the global luxury tourism market.

Together, these trends and factors are fueling the growth of bluxury in luxury tourism, allowing greater personalization and exclusive experiences for business travelers seeking to combine their professional responsibilities with luxury and personal enjoyment.