The luxury travel industry is experiencing a noticeable transformation to provide consistently comfortable stays while incorporating the newest technology and numerous high-touch amenities. Here is how one industry leader is adapting to today’s demands to provide memorable vacation home stays that an influx of travelers expect for work or leisure.
Luxury property on Wander.com
How the Luxury Travel Industry is Changing
High-quality accommodations are a cornerstone of luxury travel. Five-star hotels and resorts dominate the landscape where guests expect a consistent experience across a brand’s portfolio. While each location may have its unique traits, certain “creature comforts” like rainfall showerheads, fireplaces, or comfortable bedding are uniform.
The coronavirus pandemic is a catalyst for the industry’s rapid changes. Specifically, many travelers started staying at vacation homes for extra privacy and personal amenities. However, the lack of hotel-grade amenities at many properties detracts from the guest’s experience.
Experiencing the imminent need for better stays himself, John Andrew Entwistle founded Wander in May 2021 to provide luxury vacation home experiences without sacrificing the quality of luxury hotels.
Entwistle’s timing is impeccable. He had just stepped down from running his last company and was using this getaway to reflect on his future. Specifically, his Colorado rental cabin with uncomfortable beds, unreliable internet, and no dedicated workspace inspired him to mesh the quality of luxury hotels with the comfort of private vacation homes.
Currently, Wander embraces his dream by owning and operating more than 90 locations in desirable destinations across the United States, including Big Sur, Yosemite, Malibu, Vail, Telluride, the Atlantic Coast, and the New England countryside.
Each property includes the following core amenities:
- AI-assisted services
- Smart bed technology
- Modern workstations
- Wellness features (i.e., pools, saunas, and hot tubs)
- 24/7 concierge service
“With an industry-leading 93%+ guest satisfaction rate, we’re the first end-to-end travel platform for trips, experiences, and concierge service,” says Entwistle who is currently Wander’s CEO and previously a Forbes 30 under 30 and Thiel Fellow.
Entwistle continues, “In a world where expectations are high and disappointments are plenty, where so much of the infrastructure to experience the world is broken, Wander stands as a
beacon of what the future of luxury travel can be: consistent, beautiful, and
unforgettable.“
Luxury Travel Growth Trends
Luxury hospitality is the fastest-growing travel segment with 6% anticipated annual growth through 2025, reports McKinsey in its The State of Travel and Hospitality 2024 report.
McKinsey finds the rapid increase stems from several factors:
- Younger generations prefer experiences, thereby allocating more for travel than previous generations at a similar age.
- 66% of surveyed travelers are more interested in travel now than pre-pandemic.
- 35% of travelers have a net worth between $100,000 and $1 million. The advent of aspiring luxury travelers who splurge on select trip components—lodging, special meals, or flight upgrades—debunks the notion that luxury travel is only for millionaires.
- Luxury travel is no longer almost exclusively for travelers from the United States or Europe, as more international residents have increased purchasing power.
- An increasing number of modern travelers prefer branded luxury and loyalty programs to independent operators while seeking personalizable itineraries and experiences.
The burgeoning interest in the upscale travel segment is increasing competition among operators of luxury hotels and vacation homes, which are adapting to today’s travel needs.
Guests Want Standardization in Luxury Travel
As the industry pivots to a growing audience and more diverse traveler behaviors, McKinsey recommends digging deeply and segmenting by age, nationality, and net worth to serve the needs of their primary guest with a standardized experience.
Recognizing the industry-wide changes and learning from personal travel experiences, Wander has had over 17,000 guests experience its modern, white-glove amenities so far.
Unlike most vacation rental platforms, which simply list properties from a broad swath of individual hosts and agencies, with vastly different amenities and minimum property standards, Wander fully operates each home on its platform. This practice allows the company to provide a uniform experience across its portfolio.
Further, implementing the latest technology available is one of Wander CEO John Andrew Entwistle’s priorities to provide a personal touch from booking until checkout. Embracing technology is second nature as Entwistle was previously the co-founder of Coder.com before launching Wander.
Instead of just browsing listings by destination at the beginning of the booking process, aspiring guests receive AI-assisted property recommendations to find the ideal destination. Further, each listing includes virtual house tours, local attraction guides, and guest testimonials to get an in-depth grasp of the stay experience and panorama before arrival.
Economic Challenges Facing Luxury Travel Providers
While the increased demand for premium travel experiences is a net positive for travel hosts, financial obstacles lie beneath the surface that can impact the profitability of high-end short-term rental properties.
Specifically, in 2023, short-term rental owners experienced a double whammy of inflation and an overall decline in revenue per available room (RevPAR). Thankfully, the industry forecasts modest improvements in the average daily rate and revenue so hosts can continue offering services that affluent and high-income travelers expect.
Wander is leaning into the industry’s changes through the following strategies :
- Authentic experiences: Focus on differentiation and make customer experiences the core emphasis instead of offering a cookie-cutter solution for all guest backgrounds.
- Portfolio diversification: Be rigorously selective when choosing homes and locations. Inspiring destinations are one research factor, but choosing the right spot is crucial.
- Top 1% of vacation rentals: Data points indicate the top 1% of properties earn 35% of all short-term vacation rental revenue. Wander prides itself on only owning top-tier properties resulting in strongly positive guest reviews for a win-win situation.
- Ignore the hype: Many temporary distractions—especially advancing travel demand—make it harder to achieve the cardinal goal of building a stable and durable business.
Entwistle’s vision is to be a resilient smart vacation home platform for the foreseeable future while remaining receptive and adaptable to guests’ needs for a top-notch experience. Guests can expect a level of consistency across Wander’s portfolio at their favorite destinations and new adventure spots to spend more time exploring instead of adjusting to a property’s shortcomings.
Recent studies indicate that 77% of travelers care more about the best-fitting travel experience than about the cost of the trip, according to the 2024 Global Travel Trends Report from American Express Travel.
For instance, Wander’s ambitions include establishing a global footprint while expanding its United States portfolio simultaneously. As the company grows, it plans to seamlessly integrate other travel booking options, such as flights and additional services, that the next generation of travelers is seeking. Premier guest stays remain its core focal point, though, assures Entwistle.
Final Thoughts
Leisure and business travelers flocked to luxury vacation rentals during the pandemic. While many enjoy the coziness and extra living space, the lack of hotel-grade amenities and cleanliness leaves something to be desired. Wander is addressing these shortcomings through vacation homes meeting the travel needs of the 21st century to work or rest.