Under-water hotels to renting private islands: How the rich like to travel

Ultra-HNIs dedicate 7% of their expenses to foreign travel for leisure.

Foreign travel for leisure has become an essential and growing spending category for India’s ultra-high-net-worth individuals (Ultra-HNIs). According to the Kotak Private TOP 2024 survey, more than half of Ultra-HNIs have reported an increase in their expenditure on foreign travel for leisure, signaling a shift in how the wealthy prioritize their lifestyle choices.

 

Notably, entrepreneurs are leading the way in this trend, with 69% of them increasing their foreign travel budgets, compared to 44% of Inheritors and 43% of professionals. This growing appetite for international travel among Ultra-HNIs highlights the increasing importance of luxurious and exclusive experiences in today’s post-pandemic world.  Kotak Private’s TOP report surveyed 150 wealthy individuals across India, offering some novel trends in their choices of investments, including their evolving roles as global investors in luxury and emerging digital trends.

 

 

The survey also underscores a distinct preference for private and high-end travel experiences. Wealthy travellers are seeking more personalized, curated trips, with many opting for upscale hotel brands and private stays. Among the most sought-after experiences are stays in historic properties, such as castles in England and chateaux in France, offering an air of royalty, grandeur, and elegance. Exotic destinations like underwater hotels in Dubai and Fiji, along with adventure-packed cruises to Antarctica that include helicopter tours and submarine excursions, are also gaining popularity.

 

Expedition cruises to Antarctica, complete with helicopter tours and submarine excursions, and ultra-luxurious African safaris featuring private game drives and hot-air balloon rides are also in high demand.

 

“Luxury travel is no longer just about five-star amenities; it’s about exclusivity and unique, once-in-a-lifetime experiences,” says an industry expert. “These ultra-wealthy travellers are willing to pay a premium for something that cannot be replicated.” 

Space tourism, private-island rentals in the Maldives or the Caribbean, dining inside an Icelandic volcano, and indulging in a 20-course dinner at the world’s most expensive restaurant are just some exclusive experiences gaining popularity around the world

 

"Curated experiences are a hallmark of Ultra-HNI travel, with bespoke itineraries including after- hours access to renowned museums, exclusive cooking classes with Michelin-starred chefs, and VIP experiences at global events like the Monaco Grand Prix. This reflects a shift towards a growing preference for personalised, experiential, and curated travel among Ultra-HNIs, emphasising unique and often transformative experiences across the globe,  noted the Kotak report.

 

In addition to travel, membership in private clubs remains a crucial aspect of the Ultra-HNI lifestyle. More than 40% of Entrepreneurs and Professionals deem private members’ clubs essential, as these exclusive spaces offer networking opportunities that are key to expanding their businesses or advancing their careers. However, this sentiment is not as strong among Inheritors, with only 25% considering membership essential.

 

The Kotak Private TOP 2024 survey also reveals a growing trend towards investing in collectibles, as Ultra-HNIs seek to combine passion with investment. Jewelry, in particular, leads the pack, with 94% of Ultra-HNIs owning collectible jewelry, and 79% planning to purchase more. Collectible art follows closely behind, with 73% owning art pieces, while the world of NFTs is gaining traction, with one-third of Ultra-HNIs investing in digital collectibles.

 

Interestingly, there is a marked decline in interest in items such as handbags, antiques, and sports bikes, while vintage automobiles and collectible coins are seeing a rise in popularity. The expanding world of luxury collectibles indicates that the Ultra-HNI community is placing increasing value on tangible, rare items that also offer potential financial growth. 

Disclosure: Entities controlled by the Kotak family have a significant holding in Business Standard Pvt Ltd