Luxury travelers along with service businesses lost some confidence in the third quarter of this year.
The Luxury Consumption Report put out by United Marketing dropped to 96, or down 6.7 points from the second quarter.
Said Pam Danziger, president of Unity Marketing:
“There is a myth in luxury marketing circles that the affluent are immune to economic ups and downs. That isn’t true any longer. In fact, luxury consumers with their surfeit of material wealth have no pressing need to go shopping, dine out or travel when they don’t feel confident.”
She said foreign travel was particularly impacted.
“Luxury consumers’ feelings of finanicial stress kept them homebound in the third quarter. In the months when we would expect travel to rise, it actually declined, with foreign travel really taking a hit,” she said.
But as political uncertainties from the election subside and the stock market rebounds, she added luxury service and goods providers might expect a return “in full force” in the last quarter of this year.
Report by David Wilkening
