The well-off continue to splash out on luxury travel

Posh hotels, first-class air fares and once-in-a-lifetime experiences. 

Luxury goods are out, but luxury travel is in.

Some luxury-goods firms have caught the trend. Labels including Bulgari and Armani have opened branded hotels. LVMH, which owns Louis Vuitton and Fendi, launched a fancy new Belmond sleeper train in Britain a few months ago. 

Its 230-metre, 54-suite Orient Express yacht, built in partnership with Accor, is due to set sail from France next year. 

Dolce & Gabbana and Burberry have paired with hotel groups to open pop-up stores and beach clubs.

The Economist 6 October 2025

https://www.economist.com/business/2025/10/06/luxury-goods-are-out-but-luxury-travel-is-in



The wealthiest 10% of American households—those making more than $250,000 a year, roughly—are now responsible for half of all US consumer spending.



Discretionary spending is becoming a luxury for the wealthy, and so is optimism.

This decade, booming financial markets added $51tn to US wealth and while millennials did especially well, virtually all their gains went to rich millennials. 

To a widening wealth gap between the young and old, add this new source of division and anger within the younger generation.

https://englundmacro.blogspot.com/2024/11/us-discretionary-spending-is-becoming.html


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