With Global Warming Accelerating, “Coolcationing” Will Transform Wellness Travel

By Thierry Malleret, economist

With key temperature thresholds being repeatedly toppled, there is a growing consensus within the scientific community that global warming is accelerating faster than expected. As a result, the trend of travellers seeking cooler destinations is now gaining important traction. Travel platform Virtuoso reported that 82% of tourists are considering cooler destinations in 2024. Accordingly, in Europe, Scandinavia, the Baltics, and Scotland are surging in popularity, to the detriment of Mediterranean destinations.

This “coolcationing” trend will inevitably speed up, with profound implications on real estate investment and wellness tourism—although many asset-owners aren’t paying attention, because it’s happening slowly. Slowly, but irrevocably.

GLOBAL WARMING IS ACCELERATING. With key temperature thresholds being repeatedly breached, there is a growing consensus within the scientific community that global warming is accelerating faster than expected. This is a stark omen and the sign that we are now in the early stage of a climate emergency. In the short-term, this will lead to (1) spiralling economic costs (such as the cost of insuring against climate disasters) and in the longer-term to (2) drastic changes in weather patterns (such as a rapid drop in temperatures across Europe, with the possibility in 10-50 years of London becoming as cold as Labrador). Despite the growing politicization of climate action, investors are increasingly engaging in the frantic search for solutions across adaptation, mitigation, and resilience. Luckily, innovation is relentless, as proven by our good4nature alliance. For those still claiming this is not as serious as it seems, we have the following proposition: invest your pension in ski industry stocks to prove us wrong.

“COOLCATIONING” WILL SLOWLY, BUT RADICALLY, REVOLUTIONIZE WELLNESS TRAVEL AND TOURISM.

For more than two years we’ve been referring to the trend of travellers seeking and spending vacations in cooler destinations. This is now gaining important traction. Luxury travel platforms and networks report that a rising number of their clients (up to 82% in a survey led by Virtuoso) are considering for 2024 destinations with more temperate weather. Accordingly, in Europe, Scandinavia, the Baltics and Scotland are surging in popularity, to the detriment of Mediterranean destinations.

As global warming accelerates, this “coolcationing” trend will inevitably accelerate in tandem, with profound implications on real estate investment and wellness tourism. In the northern hemisphere, northern destinations will capture much of the upside. Many asset-owners do not pay attention to this phenomenon because it’s happening slowly. Slowly, but irrevocably.