Virtuoso Travel Week 2025: The new rules of luxury travel

From AI disruption to Gen Z influence, five issues shaping the future of luxury advisors

At the 37th annual Virtuoso Travel Week—dubbed the “Fashion Week of Luxury Travel”—nearly 4,800 advisors, hoteliers, technologists, and media gathered in Las Vegas. Despite economic uncertainties, Virtuoso’s data revealed that luxury travel overall is up 12% year-to-date, fueled by resilient ultra-high-net-worth travelers. The event spotlighted the critical challenges facing luxury travel advisors today, providing a clear roadmap for the future of the industry.

Key takeaways

• Staying ahead in an AI-driven world: AI is rapidly reshaping how clients plan trips—even fueling itineraries via ChatGPT—yet Virtuoso CEO Matthew Upchurch frames it as a tool, not a threat. Advisors are encouraged to embrace AI for backend efficiencies such as API integration and strategic data analysis to enhance human connection. As AI-generated fake reviews and deepfakes grow more sophisticated, “trusted advisors will only become more trusted.”
• Brand prestige hinges on owner commitment: While ADRs for Virtuoso hotels have risen 62% since 2019 (now exceeding $1,400 per night), guests' experiences often hinge on whether hotel owners reinvest in staff, amenities, and maintenance. Luxury is defined less by branding and more by the quality and attention guests sense on the ground. Upchurch even suggested brands might reconsider fees based on such investments.
• U.S. inbound travel: A silver lining amid global shifts: Global inbound travel is booming—except, it seems, in conventional U.S. forecasts. Yet Virtuoso data tells a brighter story: inbound U.S. sales are up 4% (January–July), and fall bookings have surged 27%. Given that one in thirteen U.S. jobs relies on tourism, advisors are urged to advocate for policies that protect and grow this critical sector.
• Preparing for a generational wealth shift: With Baby Boomers still holding most of the wealth (approximately $83 trillion), about 10% is set to transfer to younger generations in decades ahead. Meanwhile, Gen Z travelers—prioritizing experiences over possessions—are poised to reshape industry dynamics. Advisors should begin tailoring offerings to align with Gen Z’s values and behaviors even as Boomers, Gen X, and Millennials continue to dominate current spending.
• Reframing sustainability from “overtourism” to “destination stewardship”: Sustainability has gone mainstream: 77% of advisors report increased client interest in sustainable trips compared to five years ago, and 79% say travelers are exploring cooler or off-peak destinations (“coolcations”). Upchurch urges a shift in the dialogue—from criticizing overtourism to championing destination stewardship, which places local needs and sustainable planning at the center.

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