We now move into part 4 of my series analyzing McKinsey’s State of Fashion 2024 128-page report and find ourselves in “Vacation Mode.”  As the emergence from the pandemic accelerates, there’s a renewed enthusiasm for travel. Global travel is expected to not just recover but surpass pre-pandemic levels, reaching up to 110 percent of 2019 levels in 2024.

The Resurgence of Global Travel

The McKinsey State of Fashion 2024 report presents a fascinating outlook on the evolving landscape of global travel and its impact on the fashion industry. As we emerge from the pandemic, there’s a palpable enthusiasm for travel like never before. Global travel is expected to surpass pre-pandemic levels, reaching up to 110 percent of 2019 levels in 2024. This resurgence is fueled by fundamental shifts in lifestyles, including the rise of remote work and the blending of business and leisure travel, often referred to as “workations.”

One key insight from the report is that global travel and shopping have become inseparable companions. Brands like LVMH and Kering have witnessed significant sales growth, with Americans in Europe driving this surge. According to the BoF-McKinsey State of Fashion 2024 Consumer Survey, a whopping 80 percent of global respondents plan to shop for fashion while traveling in 2024, with nearly 30 percent intending to spend more than the previous year.

What’s particularly intriguing is the shift in global travel preferences. While major capitals like Paris and London remain shopping havens, travelers are increasingly seeking new and unexplored destinations. This trend reflects a post-pandemic desire for freedom and escapism, as travelers crave unique experiences beyond the traditional hotspots.

The report highlights an important aspect of this global travel resurgence: the revival of experiences. Travelers are now willing to allocate a significant portion of their budget for curated moments and unique experiences. Fashion brands are not just limiting themselves to pop-up stores; they are venturing into adjacent categories like food, nature, and wellness to provide holistic experiences. It’s about creating memories that transcend mere shopping.

The integration of pop-up ventures into sightseeing, culture, and local dining experiences is on the rise. Brands are tapping into the “set-jetting” trend, where travelers visit locations inspired by television and film. This demonstrates the creative adaptability of fashion brands in aligning with popular culture as TV and movies dictate the next destination in global travel.

Fashion and hospitality are converging to offer travelers enhanced experiences. Collaborations between luxury hotels and fashion clubs are redefining luxury global travel. Guests can access high-end fashion collections right at their hotel, offering a new level of convenience and luxury.

Resort fashion wear will be important in this new travel era. Travelers are investing in vacation wardrobes, driving the success of summery labels and vacation categories. Luxury brands are launching or revamping resortwear collections to cater to this demand motivated by the rise in global travel, and even mass-market brands are getting in on the action with designer collaborations.

As consumers seek unique global travel experiences, fashion brands must adapt their strategies. This includes exploring emerging destinations, innovative marketing initiatives, and collaborations with adjacent industries. The key takeaway here is the need to keep pace with global customers, adapting to when, where, and how they want to shop while on the move. The travel zeitgeist of 2024 presents exciting opportunities for the fashion industry to redefine the shopping experience.

KEY TAKEAWAYS FOR OPPORTUNITIES IN GLOBAL TRAVEL

1. Adaptability: Brands need to be agile, adapting their strategies to the shifting travel trends and consumer expectations.
2. Innovative Distribution: Exploring new retail formats and locations in line with travel patterns is crucial.
3. Blended Experiences: Creating unique experiences that combine fashion, travel, and hospitality can offer a competitive edge.
4. Emerging Hotspots: Proactively identifying and capitalizing on emerging travel destinations can open new avenues for growth.
5. Cross-Industry Collaborations: Partnering with adjacent sectors like travel and hospitality can enhance brand visibility and appeal.
6. Marketing Innovation: Developing marketing initiatives that resonate with the travel zeitgeist is key.
7. Customer-Centric Approaches: Understanding and catering to the evolving needs and preferences of traveling consumers is vital.
8. Resortwear Expansion: Leveraging the growing interest in resort fashion with creative collections and marketing strategies.
9. Global Growth Mapping: Reevaluating global expansion strategies in light of changing travel patterns.
10. Sustainability and Authenticity: Integrating sustainable practices and authentic experiences to align with consumer values.