Anyone who works in any aspect of the luxury industry from hospitality to handbags knows that we’re not just feeling a January chill, we’ve been in a Luxury Winter for over a year.

We bring in about half our revenue from luxury brands, so it definitely has me watching and thinking a lot about what is causing these shifts in spending habits and desire. We talk to luxury buyers every day in major markets all over the world from Dubai to London. And what we’re hearing everywhere is a focus and redefinition of value.

It’s not just about price increases, although that has annoyed a lot of people. And while resale value continues to become ever more important in many categories of luxury goods, personal experience is now what matters most to people. The ability to provide a sense of humanity is separating luxury winners from losers. A brand may design the most beautiful jacket in the world, but if it doesn’t make its customers feel that they are known and warmly welcomed across touchpoints, it will fall flat. 

We recently spoke with luxury automotive buyers in Europe and by far, the number one influence on their next car purchase is the relationship they have (or lack) with a person at their dealership. This also happens to be where service falls down most often. People expect more than a car, they want the brand to know and recognize them every time they come in for service. In other words, they want to join a club.

Speaking of clubs, from the expanding Onda collection to the sanctuary of The Yellowstone Club, to  Maison Estelle in London and Colette in New York, having a luxury “third place” also exemplifies the importance of human experience in this new era. Now it’s less about what you’re wearing that signifies your tribe; it’s where you’re wearing it – and ideally it’s in a safe, exclusive and beautiful bubble. 

Because of this, the world of hospitality has not been suffering from a Luxury Winter at all. While luxury goods sales declined in 2024, travel bucked the trend. And what are luxury hotels, private jets, yacht-sharing companies and high-end cruises emphasizing? Bespoke journeys tailored to individual preferences. “Attentive, personalized service” is how an executive from The Global Travel Collection recently described their top priority to me.

This desire for charming human interaction feels to me like a direct result, to some extent, of all the excitement around AI and “removing friction” from transactions. Of course people want convenience and efficiency – they always will. But if luxury brands miss the opportunity to make their customers (their tribe) feel special, seen, acknowledged, remembered and loved in new ways, they are missing out on what people, right now, desire most.