The post-pandemic recovery ushered in a golden era for high-end luxury hospitality. With pent-up demand, rising affluence, and the revenge travel boom, luxury properties have enjoyed record-breaking occupancy and rates. Many hotels have responded by leaning into extravagance: more hyperbole, more opulence, and more displays of excess.
But the pendulum may now be swinging back.
A growing group of affluent travelers is becoming fatigued by conspicuous consumption in hospitality. They are unmoved by personal butlers, gold-plated fixtures, over-the-top amenities, and exorbitant room rates that fail to deliver commensurate value. Instead, these “post-luxury” consumers seek a different kind of experience — one that is understated, thoughtful, and deeply personal.
For hospitality leaders, the question is: How do you cater to this emerging market?
Signs of Consumer Fatigue
Rates at many high-end properties have spiraled upward, with some brands testing just how much affluent travelers are willing to pay. Yet, service levels have not always kept pace, leaving guests disenchanted.
Luxury hospitality, for all its success, is showing cracks. According to a report from luxury travel advisor Embark Beyond, “Clients are pushing back more and more on exorbitant pricing. While the ultra-high-net-worth segment has never been wealthier, many are now saying, ‘It just doesn’t feel right.’”
Some even find the pricing insulting — a sign that the wealthiest travelers, who have the most to spend, are also becoming the most wary of being exploited.
Frequent travelers describe diminishing returns. A guest paying $2,000 a night might tolerate spotty service once — but multiple disappointments erode trust. An aesthetic backlash is also brewing: gaudy, over-engineered properties increasingly feel out of sync with the values of a younger, globally minded, affluent class that is tending to more subdued displays of wealth.
The Rise of the Post-Luxury Traveler
This new segment of post-luxury travelers has the means to indulge in Parisian palace-style traditional luxury but chooses not to. They don’t need accommodations to reflect and stroke their egos or affirm their importance.
These travelers have often “done the work” — gaining self-awareness and refining their preferences over years of both business and leisure travel. They are not rejecting luxury but asking for a re-shaping of it. Substance and emotional connection take precedence over flash and theatrics. Some key traits of this emerging cohort include:
Intentional Design: Square footage matters less than thoughtful design and spatial flow. They value properties with a clear vision and attention to detail.
Provenance and Ownership: They gravitate toward independently operated hotels where the owner’s presence and passion are palpable.
Personalized Service: Attentive yet human and sincere service trumps cookie-cutter luxury pretenses and over-engineered service.
Sustainability and Community: The excess of the over-the-top, luxe breakfast buffet feels wasteful to this cohort: They are glancing at the entire sustainability narrative and scanning it for BS, evaluating the ecosystem of suppliers, vendors, and community engagement when they are making a travel decision.
The New Appeal of Owner-Operated Hotels
Owner-operated hotels stand out in a market saturated with uniform luxury brands. These properties, often run by families or individuals with a strong sense of place, offer what larger brands struggle to replicate: authenticity and personalization.
Ett Hem in Stockholm is a boutique property that provides a home-like experience with impeccable design and warm, attentive service. Guests often describe it as curated and lived-in, not manufactured.
Similarly, Baur au Lac in Zurich has built its reputation on consistent excellence. As a family-owned property, it prioritizes long-term relationships with its clientele over short-term profit maximization. While it looks like a traditional Swiss luxury property, the pride of ownership adds up to something deeper and more meaningful.
Fogo Island Inn in Newfoundland delivers high-end design with a mission. Its profits support the local economy, and its operations celebrate the island’s heritage. Guests leave with a deeper appreciation for the place they visited.
These owner-operated properties play the long game. Unlike some CFO-controlled chains, where even the fruit baskets are optimized for cost, these hotels prioritize thoughtful details and human connection.
Challenges for Larger Brands
Larger luxury brands face a challenge in pivoting to meet the expectations of post-luxury travelers. Standardized service models and shareholder-driven profit demands often clash with the desire for craft, depth, and personalization.
However, opportunities exist. Larger brands could create smaller, independently inspired sub-brands, forge partnerships with boutique properties, or experiment with owner-operated models under their umbrellas. Hyatt’s tie-up with Mr & Mrs Smith could be an example of giving their loyalty members a more interesting range of properties.
Redefining Luxury
To be clear, post-luxury is not a rejection of high-end consumption — it is a recalibration. It reflects a desire for substance, subtlety, and a return to the essence of hospitality: creating spaces that make guests feel genuinely cared for and connected. These are consumers who have evolved past having to feel important or having places cater to ego and whimsy. And more affluent consumers are fitting into this archetype.
For hospitality leaders, the opportunity is clear: as the pendulum swings away from conspicuous consumption, those who embrace the ethos of post-luxury can seize a market opportunity.
