Premium Is the New Mainstream: What Destination Marketing Organisations Need to Understand About High-Value Travellers

For a long time, “luxury travel” sat in its own little box. Five-star hotels. Private transfers. Champagne on arrival.

But that definition feels outdated now, especially in a post-COVID travel world.

What we’re seeing across Australia isn’t just growth in traditional luxury, but a rise in high-value travellers who are willing to spend more for depth, connection and ease. For destination marketers and operators alike, that shift matters. Because premium is no longer a niche. It’s an expectation.

High Yield Over High Volume

Tourism Research Australia defines luxury domestic travellers as those spending over $500 per night. It’s not the biggest segment by volume, but it contributes disproportionately to visitor spend.

For many destinations, that’s the more important metric. We’ve always wanted people staying longer and spending more, for good reason.

In the Kimberley, premium small-group tours and curated cultural experiences are commanding strong price points because they offer access and insight, not just scenery.

In Margaret River and the Great Southern, boutique stays paired with long lunches, private tastings and behind-the-scenes access are driving higher per-night spend.

Rottnest Cruises’ Luxe Seafood Cruise taps into this mindset. It’s not just a boat trip. It’s exclusivity, local produce and an experience that feels curated rather than crowded.

Rottnest Cruises

The Experience Economy Has Matured

Where experiential travel used to mean breakfast and a view, we now find these things "as standard". To really command a higher price point, operators and destinations need to understand that people want:

• Personalisation

• Access

• Story

• Meaning

  
  

This is true for individual tour operators, but also for destinations at a broader level.

For example, when we completed a new Destination Marketing Strategy for the City of Armadale, we found that by leaning into curated itineraries, culturally themed and signposted trails, and unique artisan food producers, the region could be repositioned from a day-trip stop to an intentional escape.

Luxury today is about connection and curation. And that is absolutely within reach for regional Australia. The shift is also visible in search behaviour. Travellers are moving beyond “Top 10 Things to Do” lists and instead looking for curated, specific experiences that feel seamless and considered.

How Can Destinations Develop this New Luxury Market?

1. Product development. Support operators who are investing in experience design and storytelling, not just inventory. Encourage existing operators to add their own personal flair to their experience and make it something special.

   
   

2. Story-led marketing. Move away from generic scenic imagery and towards personality, depth and connection. Show the fishing tour that ends with a cook-up on the beach, or the stargazing tour complete with hot chocolate and a nip of local whiskey. Highlight the food cruise where you pull your own craypot and eat your catch in a pristine bay, entice people with a full day winery experience going behind the scenes of the cellar door, followed by a decadent lunch between the vines and an overnight stay on site.

   
   

3. Confidence in pricing and positioning. If we want to attract high-value travellers, we need to stop undercutting ourselves. Premium experiences require premium confidence. That means supporting operators to price according to value, not fear. Help them articulate what makes their experience special — the access, the story, the small-group format, the local produce, the expertise. Position the experience around what people gain, not just what’s included.

   
   

A Final Thought

For today's consumers, true richness isn’t measured in money; it’s measured in meaning and the stories they get to take home with them. Not every destination needs a six-star lodge to be perceived as luxury, but every destination can elevate its positioning to feel more premium. Premium today is about intention, feeling considered and creating moments worth travelling for.