A cursory glance at today’s travel landscape can be a blinding look at the world of high-end indulgence. From airlines cutting economy seats to the sudden disappearance of affordable hotel rooms, the hospitality and travel sectors are pivoting to treat the high-spending consumer as the only guest who matters. The sector has been a prominent example of the K-shaped economy narrative, where options for big spenders grow while budget alternatives dry up, as travel executives recognize the wealthy as the primary engine of their businesses’ growth.
The matter has seemed so settled, that one hospitality boss caused analysts’ heads to turn when he said a business case for catering to the middle class still exists. Instead of being K-shaped, the hospitality economy might be curving into a C-shape, according to Christopher Nassetta, CEO of the Hilton hotel chain.
