Rich People 'Maximum 1-Night Price 650,000 Won'... "This Summer, Luxury Hotels and Restaurants Will Be Annoying"

High-Income Earners Avoid Luxury Travel Spending
70% of Respondents Find $500 Accommodation Budget Appropriate
Airlines and Lodging Industry Expect Low Peak Season Revenue

Bloomberg reported that as the global economic downturn dampens consumer sentiment, high-income individuals in the United States and Europe are showing a declining tendency to spend on luxury travel products.

According to major foreign media including Bloomberg on the 8th, MLIV Pulse recently conducted a survey related to this year’s vacations targeting 465 individuals including personal investors, traders, portfolio managers, and financial sector employees in the United States, Canada, and Europe. The results showed a low proportion of respondents intending to use luxury travel. MLIV Pulse is a weekly survey conducted among Bloomberg News readers.

Sixty-nine percent of respondents said their maximum budget for hotel accommodation per night was $500 (657,750 KRW). Only 24% were willing to spend up to $1,000 per night, and just 5% said they could spend up to $2,000 on accommodation. Bloomberg noted that "rooms priced between $500 and $1,000 per night in the hotel market typically correspond to mid-range rooms rather than suites or large accommodations."

According to Bloomberg, the cost of staying at a 5-star hotel in New York, USA, in April and May ranged from $523 to $999 per night. In Paris, France, the nightly rate at 5-star hotels can reach up to $1,382. Particularly, Saint Barth?lemy Island, one of France’s popular tourist destinations, saw peak season accommodation prices in May soar up to $1,451. Bloomberg stated that considering the trend of high-income earners cutting back on travel expenses, "luxury hotels and restaurants are likely to face quite frustrating situations this summer."

Airlines that deliberately limited flight increases and raised ticket prices to target high-income travelers are also expected to face difficulties. This is because these consumers are likely to reduce their spending and no longer purchase tickets without regard to price as before. Accordingly, 52.8% of investors who responded to the MLIV Pulse survey said that the outlook for airline stocks this year is not bright due to the recession and decreased travel demand. Meanwhile, 47.2% of respondents believed that airline stocks would rise due to demand for expensive plane tickets.

Bloomberg stated, "The recent bank failures, inflation, and labor market downturn are expected to spread a trend of curbing discretionary spending on travel," adding, "This year, the travel industry is expected to find it difficult to enjoy a peak season boom."

This content was produced with the assistance of AI translation services.