FlyerTalk Forums - View Single Post - Facing Up to the New Reality — Escalating Luxe Hotel Rates
Old Mar 20, 2024 | 12:45 pm
  #122  
david22
All eyes on you!
10 Years on Site
 
Join Date: May 2014
Location: San Francisco
Posts: 490
Originally Posted by KatW
Luxury travel and luxury material things differ wildly. One is ephemeral (other than memories, photos) the other is not. In theory your overpriced watch/handbag/scarf can accompany you for years.
Also a big factor in some luxury goods inflation was arbitrage and flipping and reselling!

​​​​​​For example, in the luxury watch market, the elite brands limit supply below demand for exclusivity. The resale price would exceed the MSRP. So VIPs get the privilege to buy a $30,000 watch that was selling on the secondary market for $50,000. So of course everyone wanted to be on the list where someone is selling $100 bills below face value!

Then there was a lot of speculation on prices rising where people would buy collectables hoping to flip them. That generated a feedback loop of more speculative demand. This has been deflating for ~2 years now.

AFAIK flipping desirable hotel reservations like scalping concert tickets isn't a factor in that market.
david22 is offline