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A raft of challenges has hit hoteliers from terrorism fears in Europe to a burgeoning battle for established luxury giants to retain the interest of a younger clientele increasingly attracted by more innovative and boutique offerings. Despite this, the sector is set to manage positive albeit slowing growth this year. Meanwhile, the pursuit of less mainstream experiences has carried over to the luxury cruise industry, where customers have shown a hankering for exploring less trodden and further flung destinations as well as more niche itineraries, such as river cruising, a sub-segment currently most established in Europe. One bracket of goods which has held up this year is the sale of wine and spirits, with the "premiumization" of cocktails boosting the market to a predicted annual growth rate of 4 percent this year. A growing preference in China for Western alcohol brands over local ones has given the former a potent shot in the arm to the detriment of domestic manufacturers. And China's influence on the market cannot be underestimated with much of the deceleration in the global market blamed on continued weakness from its consumers. While domestic spending has picked up, the broader market is suffering from the pullback of Chinese tourists. "Not all the consumption that was happening outside China has been repatriated into China so overall the global consumption of Chinese consumers is decreasing," said D'Arpizio. Other countries are facing their own set of issues, largely driven by a turbulent year for geopolitics, with confidence among U.S. consumers hit by election uncertainty, Middle Eastern and Russian buyers affected by continued oil price volatility and France and Germany most afflicted among the European nations by fears over terrorism. The sharp fall in sterling following the EU referendum might have given a temporary boost to sterling and the appetite for buying luxury in the U.K.

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