Tourism is universal. Luxury—a way of life and a state of mind—captivates the world. Regardless of nationality, gender, or age, tourism plays a key social role. Initially reserved for the wealthiest, it has become more accessible to all. Today, tourism serves as a model of integration, both for a nation and for its own citizens. It highlights history, geography, heritage, diversity, culture, discovery, and personal fulfillment. Luxury embodies the values of excellence and perfection. It is also a symbol of elegance and success. It reveals the cultural—and religious—distinctiveness, as well as the customs, of each nation. So, luxury and tourism… a given, a tautology?
Is there a connection, a collusion, a coincidence, a harmony, a synergy?…
The luxury sector in 2026 is undergoing a crisis—a rift that is both structural and cyclical. The repeated geopolitical crises since 2022—notably Russia’s invasion of Ukraine, followed by the Israeli-American war against Iran in February 2026—have exposed the fatigue of the luxury market. Prices have skyrocketed—even quintupling for the iconic Chanel Timeless Classic Flap bag, which went from €2,600 in 2010 to €11,500 in 2026!
Not all customers can keep up, especially during times of crisis, budget constraints, inflation, and even geopolitical uncertainty. COVID-19 served as an early warning sign with a 30% drop, which was quickly offset by an exponential recovery fueled by compensatory spending.
The “consum’actor”—the consumer-activist—has grown weary of this frenzy and one-upmanship. The new generation has distanced itself both in terms of positioning and in its desire to return to basics, to what is authentic and genuine. The Bain report indicates that the sector lost nearly 50 million buyers in 2024, dropping to 350–400 million.
In light of this, the luxury sector is shifting toward experience and discovery. The hospitality and restaurant industries were the first areas developed by certain brands such as Armani and Bulgari, particularly in Dubai. Ralph Lauren was also a pioneer in opening restaurants within its boutiques, such as on Boulevard Saint-Germain in Paris. This gastronomic experience is a way to accompany the customer throughout their daily routine: having coffee, lunch, or even dinner. It offers a festive and relaxing culinary break. The goal is to get to know the customer better in their daily life, in a more personalized way than through a simple purchase of cosmetics, perfumes, accessories, fashion, jewelry, or watches.
In 1998, the LVMH group purchased Château Cheval Blanc and created a hotel brand of the same name. In 2019, LVMH acquired the Belmont group, revived the legendary Orient-Express train, and, in May 2026, will inaugurate the extraordinary sailing yacht Orient Express Corinthian in partnership with Accor. For its maiden voyage, it will anchor in the Bay of Cannes during the Film Festival and in Monaco during the Formula 1 Grand Prix.
Luxury brands are turning to travel, which has always captured the imagination. Certain brands rooted in this tradition can legitimize this shift with even greater ease: Louis Vuitton—for whom the world of travel has historically been part of its DNA—is the prime example. The brand will open its first hotel of an entirely new scale on the Champs-Élysées in Paris in 2027. Louis Vuitton had already inaugurated a “cruise ship”-themed boutique in Shanghai in 2025: an invitation to come aboard!
Tourism: what is the current state of mind in this global industry ?
A victim of its own success, tourism must reinvent itself. This meteoric rise has its limits. Cities like Amsterdam, Venice, Barcelona, as well as Bangkok, Mexico City, Miami, and Dubai have been overrun by tourists. It is primarily developed countries that have driven global tourism growth, while destinations such as Spain, France, the United States, and China have benefited from this momentum thanks to the strength of their domestic markets.
The tourism industry must also reinvent itself to survive. The “hourglass” phenomenon comes into play: on one hand, extreme “premiumization” for an ultra-wealthy clientele seeking exclusivity, personalized service, and unique experiences—extended trips with a dedicated space on a train (Maharaja Express) or a sailboat (Star Clippers); on the other, a return to authenticity and nature, driven by a desire to take care of oneself and venture off the beaten path. Camping—even high-end camping—walking, and cycling are enjoying growing popularity.
Tourism is about travel, escape, discovery, change, and vacations. Regardless of economic conditions, people do not—or only very rarely—sacrifice their free time, whether spent alone, with family, or with friends. It remains their “luxury”!
It’s also about exploring a region, a country, or the world! To see, hear, smell, touch, and taste. To learn about other ways of life, other customs, and other peoples. To be surprised, to experience a change of scenery. To get a change of pace, clear one’s head, take a break, unwind, and relax. To take one’s time.
Tourism is turning toward luxury, and luxury is turning toward travel.
The two sectors influence and complement each other, each retaining its own identity while incorporating certain elements from the other. Customers find what they’re looking for here, as they seek a greater sense of escape in their experience of both luxury and tourism. Hospitality, a warm welcome, and service are the hallmarks of the luxury and tourism of tomorrow.
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