Affluent travelers grow cautious about spending

Financial anxiety among high-value guests reshapes hotel demand and pricing strategies

Financial caution is increasingly affecting travellers traditionally considered reliable premium guests, according to Deloitte’s 2026 Travel Industry Outlook. Even affluent travellers are reassessing trip frequency, accommodation choices, and discretionary spending, directly impacting hotel revenue potential. At the same time, generational shifts, AI-driven booking behaviour, and regulatory pressures are reshaping how hotels attract and retain guests. Hoteliers face a more segmented, price-sensitive market that requires clearer positioning and smarter distribution strategies.

Key takeaways

• Affluent demand softening: High-income travellers are showing greater financial caution, reducing upgrades, shortening stays, and becoming more price sensitive, which may affect premium room revenue.
• Pressure on upscale segments: Ultra-luxury remains resilient, but upper-upscale and premium hotels face softer demand as travellers reassess value and spending priorities.
• Changing luxury expectations: Gen Z and Millennials now drive much of travel demand, prioritising experiences, sustainability, technology, and family-oriented luxury over traditional status markers.
• AI reshaping discovery: Growing use of generative AI for trip planning reduces traditional brand touchpoints, making visibility within AI-driven booking ecosystems increasingly critical.
• Pricing transparency matters: Increased regulatory scrutiny on fees and pricing clarity reinforces the need for transparent, all-in pricing strategies.
• Sustainability influencing choice: Younger travellers actively filter for environmentally responsible hotels, making credible sustainability initiatives a competitive factor.
• Clear positioning essential: Hotels that define their value proposition — either true luxury or clear value — are more likely to capture cautious premium travellers in a shifting market.

Source: Deloitte

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