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Home Lifestyle Hospitality & Tourism Luxury travel market customization, personalization expected to hit $620.71 million by 2032: Report

Luxury travel market customization, personalization expected to hit $620.71 million by 2032: Report

85 percent of hoteliers view personalization as a crucial driver of commercial value
Luxury travel market customization, personalization expected to hit $620.71 million by 2032: Report
ATM outlines why luxury hospitality leaders view personalization as key to revenue growth

Personalization is rapidly emerging as a significant trend in travel and tourism, particularly within the luxury sector, as travelers increasingly seek experiences tailored to their individual preferences and lifestyles.

At Arabian Travel Market (ATM) 2025, senior executives from prominent hotel groups, including Minor Hotels, Fairmont, and Marriott, explored the rising impact of ‘hyper-personalization,’ which shifts away from generic services to offer bespoke guest experiences. By leveraging tools such as AI-driven customization and chatbots, along with personalized welcome amenities and tailored dining options, these brands are redefining the customer journey in the luxury travel segment, which continues to experience substantial growth worldwide.

According to the ATM Travel Trends Report 2025, developed by ATM in collaboration with Tourism Economics, 85 percent of hoteliers now view personalization as a key driver of commercial value, with customized experiences shown to generate additional revenue of up to 5 percent. Furthermore, insights from market intelligence firm Future Market Insight Inc. indicate that the global market for customization and personalization in travel is projected to reach $620.71 million by 2032.

During the panel discussion, experts defined hyper-personalization as delivering individualized experiences that anticipate both expressed and unspoken guest needs. While technology and Artificial Intelligence (AI) play a crucial role in providing customized offerings at scale, the panellists agreed that human connection remains vital for a truly personalized hospitality experience.

Read more: Arabian Travel Market 2025 concludes with 55,000 attendees, 16 percent YoY growth

Hyper-personalization in luxury hospitality

Nicolas Hauvespre, VP of luxury brands at MEA Marriott, stated: “When it comes to hyper-personalization, for many brands, this goes far beyond traditional service. It’s about creating something highly tailored and curated through leveraging technology and building on your culture, so you can develop that anticipatory service and meet both the explicit and unspoken needs of your guests.”

The panel, which also featured Loay Nour, vice president Fairmont Brand and Marketing Communications, and Amir Golbarg, Senior Vice President Minor Hotels, discussed the importance of establishing an emotional connection, anticipating guest needs, and nurturing this relationship over time.

“Luxury is not one size fits all; it’s no longer about recognizing someone by name or knowing their preferences in their profile. You need to understand that these consumers are not just hotel consumers; they are accustomed to an ultra level of personalization from other brands and industries they interact with, so they have a certain minimum of expectations,” Nour explained.

In the Middle East and Africa, Marriott is embracing this shift while preserving brand distinctiveness, expanding its luxury footprint with projects such as the Ritz-Carlton Reserve at Nujuma in Saudi Arabia’s Red Sea, which focuses on immersive cultural experiences. Upcoming openings in the region include a portfolio of curated Ritz-Carlton safari lodges in eastern Africa, set to pioneer new destinations and offer guests highly authentic experiences.

Future of luxury travel at ATM 2026

Meanwhile, owner-led hospitality companies like Minor Hotels are leveraging their lean structures to pilot new concepts in-house before global rollout. This operational flexibility has allowed the company to invest in curated, experience-driven offerings that prioritize quality over quantity. A recent success story is the 22-room Anantara Santorini Abu Dhabi in Ghantoot, which has exceeded expectations by concentrating on hyper-personalized offerings in a unique setting.

Danielle Curtis, exhibition director ME, Arabian Travel Market, commented on these insights: “As luxury travel evolves, so too does the definition of what it means to deliver highly personalized experiences. Today’s travelers seek more than exceptional service; they expect tailored journeys that reflect who they are and what they value. At ATM, we are witnessing how hospitality brands are rising to the challenge, providing guests with luxury experiences that are personalized, sustainable, and connected to people and place.”

Luxury travel will take center stage at Arabian Travel Market 2026, scheduled for 4 to 7 May at the Dubai World Trade Centre. Concurrently, travel technology will remain a critical focus as innovation continues to reshape the industry’s future and transform every stage of the traveler’s journey.

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