The reason luxury travel is so expensive these days

The travel industry is largely back on track.

But high prices in the luxury sector, which rose in the wake of the Covid pandemic, aren't returning to normal. In fact, they're growing higher by the month.

Luxury hotel rates reached "peak levels" this year, with average daily rates up 70% compared to 2019, according to the luxury travel company Virtuoso.

"July 2024 stands out with the highest rate, marking an 85% increase compared to July 2019," a company representative told CNBC Travel.

The price for luxury train travel is also soaring, with rates for Accor's yet-to-be-opened La Dolce Vita Orient-Express climbing 75% in 16 months. The starting price for a one-night trip on the train, which is set to open in Italy in 2025, went from 2,000 euros in late 2022 to 3,500 euros ($3,776) last month.

Rates on another luxury European train, Belmond's Venice Simplon-Orient-Express, also jumped this spring, from £3,530 in February to £7,060 ($8,925) in March, according to a review of its website.

Belmond has not yet responded to CNBC's request for comment, but Accor told CNBC Travel that pricing and plans "are constantly evolving."

Travel prices have increased for many of the same reasons that have affected other industries: inflation, rising labor costs, supply chain issues and debt service rates.

But travelers' unflinching willingness to pay the new rates means the "old" prices for a five-star holiday may be a thing of the past.

As inflation and rising costs abate, luxury travel prices are holding firm.

That's because at significantly higher rates, "the demand is there," said Henry Harteveldt, president of the travel market research company, Atmosphere Research Group

"Money is almost no object for some of these guests," Harteveldt told