NSW is the nation’s leading destination for international visitors seeking luxury experiences.

Tourism Research Australia data shows NSW was number one for international luxury visitors, nights and expenditure in 2024.

The number of international holiday visitors who stayed at least one night in a luxury accommodation including hotels, resorts and/or glamping in NSW in 2024 surged by 31.5 per cent year on year to 822,900.

These visitors stayed 3.8 million (up 29.2 per cent year on year) and spent $2.9 billion during their trips (up 21.1 per cent year on year).

The average luxury holidaymaker spent $770 per night during their stay, compared to the average international visitor spend of $119 per night.

Korea was the top source market for luxury travellers, followed by United States, China, New Zealand and the United Kingdom.

In Sydney, the top drawcards for luxury travellers were Circular Quay, Darling Harbour and the CBD. In regional NSW, the Blue Mountains was number one, followed by Port Stephens and Wollongong/South Coast.

Among the most popular activities were outdoor and nature-based experiences, with 93 per cent of luxury travellers participating during their visit. They also enjoyed local attractions, arts and heritage and Aboriginal tourism experiences.

Experience is king

According to a recent survey by Chase Travel, a business unit of JPMorganChase, interest in bespoke experiences and celebrating special occasions is motivating and shaping luxury travel.

Valerie Wilson Travel (VWT) by Chase Travel travel advisor Sue Shiffman said she recently booked for a couple celebrating their 50th wedding anniversary in Japan, while another family was travelling to Australia to watch their daughter run the Sydney Marathon.

"Luxury travel is evolving to encompass not just visiting specific destinations, but partaking in bespoke, immersive experiences that will foster memories - and maybe a few high-end keepsakes - that travelers can cherish for years to come," she said.

Redefining the modern luxury traveller is seeking

According to international research firm McKinsey's Updating perceptions about today’s luxury traveller report demand for luxury tourism and hospitality is expected to grow faster than for any other industry segment over the next decade.

The report found there is a large and expanding base of aspiring luxury travellers with net worths of between $US100,000 and $US1 million, many of whom are younger and increasingly willing to spend larger shares of their wealth on upscale travel options.

While baby boomers represent a significant portion of luxury spending, 80 per cent of the luxury leisure market is made up of people below the age of 60.

McKinsey found spending on travel peaks between the ages of 40 and 60, and younger travellers show an increasing willingness and ability to spend at luxury levels.

While luxury travellers were comparatively more likely to go on exotic and adventure-focused vacations, such as yachting trips or safaris, the largest share still wanted to do the same kinds of things that other travellers do.

Sixty-five per cent of them expressed intent to go on sunny beach holidays, and 55 per cent said they were planning to book relaxing getaways

Wellness was identified as a major global trend for luxury travellers, who are increasingly looking for ways to put their health—both mental and physical—at the centre of their trips.