Decisions and behavior, not household income or net worth, distinguish “indulgent explorers” — a small, highly unique premium traveler segment analyzed in a new report from Phocuswright entitled “Quiet Luxury in Motion: The Indulgent Explorer Mindset.”
The report, drawing on an online survey targeting U.S. leisure travelers, defines an indulgent explorer as a traveler who has taken a leisure trip in the last year that cost $1,500 or more per person per day, inclusive of lodging, cruise, meals and other in-destination activities or excursions. Compared to other travelers, indulgent explorers prefer novelty and gravitate towards distinctive landscapes, formats and experiences that others can’t access — which in turn influences their travel-related spending habits.
In general, the group skews younger and has a higher income on average; a meaningful minority (30%) has a household income under $100,000, suggesting their high-value trips reflect prioritization and tradeoffs. More than three-quarters of the indulgent explorers surveyed were repeat premium travelers, taking multiple trips per year at the qualifying spend level.
Other Key Findings
Among Gen Z and millennials within this traveler segment, initial trip inspiration is often driven by social media, with recommendations from friends and family and bucket-list motivations being cited more often by Gen X and Baby Boomer survey respondents.
On average, indulgent explorers balance destination and experience in making travel-related decisions, with the older, wealthier travelers within the segment prioritizing exclusive experiences that not everyone can access. They’re also more likely than other travelers to purchase packages — 43% purchased a dynamic, or customizable, package on their last high-value leisure trip, while 13% opted for a fully prepackaged vacation.
Interestingly, these travelers aren’t necessarily wooed by name brand hotels; short-term rentals remained popular among respondents, with just 58% reporting having stayed in a hotel on their last trip. Among those who stayed in hotels, slightly more than half opted for chains over independent or boutique properties, reflecting the near-equal importance of brand affiliation with uniqueness.
When asked as to what made a premium trip worth the price, most age cohorts cited space, privacy, exceptional service and “being made to feel special.” Gen Z, in particular, stood out for prioritizing unique insider experiences.
End-to-end privacy and discretion are also top priorities for this traveler segment, with 61% of respondents with a net worth of $1 million or more saying they avoided mentioning the cost of their leisure trips. However, this attitude declined with decreases in net worth.
Takeaways for Advisors
According to Phocuswright analysis, suppliers and intermediaries have a clear opportunity to appeal to indulgent explorers with tiered benefits and travel experiences that prioritize access, time-savings and high-touch service.
Advisors should take individual client preferences into account in order to help this group curate the feeling of quiet luxury they seek. Meeting expectations across every touchpoint of a given journey is critical, as is offering multiple cost options — not just premium offerings — and striking the balance between personalization and privacy.
Most importantly, the indulgent explorers’ tendency to repeat premium travel makes them a high-value traveler segment. Those who can meet this group’s travel needs are well positioned to win repeat business and build long-term loyalty.
