Years ago if you were going to be spending thousands of dollars on a luxury hotel you’d make sure you arrived in style. It might have been club class or even travelling at Mach 2 onboard concord but the whole trip would have been done in style. European airline, EasyJet, however, is hoping the old rules no longer apply.
The airline has been selling holidays since 2019 but in October launched a new Luxury Collection, what it called “a market-leading proposition comprising five-star holidays designed for travellers seeking ultra luxury experiences.”
Included in the offering are: the likes of One&Only Portonovi;The Sultana Marrakech; and Mykonos Grand Hotel & Resort.
It might seem strange that a budget airline based in Luton, England might want to sell five-star resort packages but diffing into its full year results announced on 25 November, it is easy to see why.
Overall EasyJet say its pre-tax profit increase 9 percent to £665 million. The holidays division delivered £250 million of pre-tax profit, achieving its medium-term target ahead of plan.
“Holidays remains a clear source of profitable growth over the long term and the Airline should benefit from up-gauging helping unit costs and route maturity effects helping unit revenue beyond this year,” said Gerald Khoo transport analyst at Panmure Liberum
In 2025, EasyJet had just over 3 million holiday customers, a 20 percent increase, 2.7 million come direct with the rest sourced via Booking.com. Excluding the flight element, EasyJet generated revenue of £1.4 billion, a rise of 27 per cent.
According to a strategic presentation released at the same time as its full-year results, easyJet still sees room for further growth in areas like luxury as well as city breaks and expanding into other European markets.
Garry Wilson, EasyJet Holidays’ CEO, said in October: “The launch of our Luxury Collection reflects our ambition to redefine premium travel. Each hotel has been carefully hand-selected to provide an exceptional, effortless experience that exceeds the expectations of the most discerning travellers. This new collection allows us to reach new audiences, strengthening our position as a leader in both value and luxury travel - all while maintaining our unwavering commitment to outstanding service and unforgettable travel experiences.”
James Bland, managing director at market research consultancy BVA BDRC thinks the move is a sign of the times.
“While there are elements of this that genuinely do appear to represent luxury, there are some aspects where the word luxury is doing a bit of heavy lifting. I am old enough to remember a time when airlines had dedicated staff on hand to anticipate guests’ needs before they arise as-standard, rather than everything being digital and automated by default. I suppose in the forthcoming age of AI, talking to a human may well become a hallmark of luxury," he said.
"This probably isn’t a play to capture ultra-luxury travellers. People who can afford first-class flights and all the trimmings, and who see the journey as part of the experience, are not going to switch to easyJet to save a few quid. Those for whom travel is a commodity – a means of getting from A to B that has to be endured, rather than enjoyed – will perhaps find this all rather appealing. And may well even be tempted to trade up on their normal hotel accommodation if the bundle is attractive enough.”