While inflation, geopolitics and trade disputes represent possible headwinds against overall travel growth, the current demographic situations for Canada and numerous other advanced economies amount to a prevailing tailwind that will propel growth in the luxury hotel category for the rest of the decade if not longer.

While you may dismiss luxury hospitality at first blush as only for the 1% or the 10% and not for your organization, understand that its very nature is becoming more aspirational as the experience economy takes hold of our society. In a post-material world where identity is defined less by what one owns and more by what one believes, travelers all over are prioritizing upscale and luxury stays for their discretionary spend in a pursuit of memories, meaning, wellness and wellbeing.

Nowhere is this more prevalent than in the baby boomer generation which has the dominant share of disposable income and savings amongst all cohorts, and now more time on their hands as they ease into their empty-nested, post-career lifestyles. They have a lot of money to spend, time on their hands and are eager to enjoy life to its fullest. Moreover, as the prospects of longevity habits and practices gain awareness, many boomers are adjusting their lifestyles, heralding longer lifespans and healthspans all round. In sum, boomers are at their peak and they aren’t letting go of the reins any time soon.

This all translates into a host of travel behaviors and economic demands for which keen hotel companies around the globe are pivoting to address. There’s much to inspire Canadian brands and find ways to apply to our hotels.

To delight the senses through art and architecture, design trends are bifurcating towards the ultra-chic minimalism of Aman – with both American resorts Amangiri and Amangani becoming de jure rights of passage for luxury hoteliers – as well as the contemporary maximalism of Faena in Miami.

Wellness is now far more than just spa and yoga, with trendsetters like Chip Conley’s Modern Elder Academy helping late-stage executives and ‘elderpreneurs’ rediscover their sense of purpose through multi-day workshop retreats. On the longevity front, you have brands like Canyon Ranch, Chenot Palace, Clinique La Prairie, Lanserhof and many other luxury health clinics all at over $1,000 per night. Regenerative tourism is yet another megatrend, allowing guests to stand in awe of this pale blue dot of ours by reconnecting to the lands at places like Brush Creek Ranch in Wyoming or Babylonstoren in South Africa.

While these kinds of ultraluxury hotspots never expressly state that boomers are the group driving revenues, the demographics only point in one direction. Appealing to boomers through experiential F&B, multigenerational room configurations, differentiated wellness programs or exclusive activities can have a tremendous impact on the top and bottom lines. This cohort is hardly ‘old’ – strike that word from your vocabulary. They are leaders, mentors, friends, volunteers, hobbyists, gourmands, adventurers, matriarchs and patriarchs, and they will gladly be patrons to those hotel brands that treat them in kind.

As the expression goes, “It’s better to do one thing great than many things average.” Ultraluxury hotels are never average, and that’s precisely why they’re luxury. It’s your job to study what makes them special then pick just one or two aspects that can work for upgrading your operations back home.

And to give you a good starting point for the learning journey, be sure to check out our editorial on the growth of luxury around the world, aptly titled ‘The Mille Club’ wherein we use the Italian word for a thousand to denote the blooming number of hotels charging that or more for a night’s stay.

Questions and Answers From This Article

Why is the luxury hotel market expected to grow despite economic uncertainties like inflation and geopolitics?

While inflation and geopolitical tensions can slow general travel, demographic trends—especially in advanced economies like Canada—are creating strong demand for luxury hospitality. Wealthy and aspirational travelers, particularly baby boomers with disposable income and more free time, are prioritizing upscale experiences focused on wellness, meaning, and memories, driving sustained growth in the luxury sector.

How are luxury hotels adapting to the evolving preferences of baby boomer travelers?

Luxury hotels are tailoring offerings to meet boomers’ desires for experiential travel, wellness, and multigenerational stays. This includes incorporating sophisticated design trends, wellness programs beyond traditional spas, and exclusive activities that align with boomers’ active lifestyles and longevity goals, positioning these guests as key drivers of revenue and innovation in luxury hospitality.

What lessons can other hotels learn from ultraluxury brands to upgrade their own operations?

Ultraluxury hotels excel by focusing deeply on a few distinctive strengths rather than being average at many things. Other hotels can study these brands to identify one or two unique elements—whether it’s exceptional service, wellness programs, or authentic local experiences—that can be adapted to elevate their own guest offerings and capture new market opportunities.

Larry Mogelonsky, MBA, P. Eng. - Hotel Strategist, Industry Pundit, Veteran Marketer, and Public Speaker. Adam Mogelonsky, is the chief technologist of the company, Adam has a broad understanding of the complexities of the hotel tech stack as well as the vendors who are paving the way for increased labor efficiencies and new revenue growth opportunities.

Leveraging over 40 years working in hospitality, Hotel Mogel Consulting helps both hotel owners maximize property performance and technology vendors navigate the industry's entry barriers to realize financial success. Visit our contact page to start the conversation.

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