The global luxury travel market was valued at USD 1,794.4 billion in 2020 and is expected to grow at a CAGR of 5.3% over the forecast period. Luxury tourism has steadily risen into one of the world's largest and fastest-growing economic industries during the last two decades. As more wealthy residents arise in many parts of the world, the tourism industry is expanding to fulfil their needs. More mature markets seek new luxuries, while emerging middle classes desire the substantial part of luxury journeys. Luxury travel refers to the availability, and particularly the demand, of a specific category of tourism.
The global luxury travel market is categorized based on age group, and application. Region wise, Europe was the largest market in 2019 and is expected to be the fastest growing region by 2028, with a CAGR of over 6%.
Key players serving the global luxury travel market include Abercrombie & Kent, Cox & Kings, Micato Safaris, The Luxury Safari Company Ltd., Ker and Downey, Thomas Cook, Scott Dunn, Rothschild Safaris, Butterfield and Robinson, Natural Habitat Adventures among other prominent players.
Key segments of the global luxury travel market
Age Group Overview, 2018-2028 (USD Billion)
- Generation X
- Baby Boomers
- Silver Hair
Application Overview, 2018-2028 (USD Billion)
- Adventure Travel
- Personalized Vacations
- Cruising and Yachting
- Culinary Travel
Regional Overview, 2018-2028 (USD Billion)
- North America
- United Kingdom
- Rest of Europe
- Asia Pacific
- Southeast Asia
- Rest of Asia Pacific
- South America
- Rest of South America
- Middle East & Africa
- South Africa
- Rest of Middle East and Africa
Reasons for the study
- The purpose of the study is to give an exhaustive outlook of the global luxury travel industry
- The overall segmentation of luxury travel market, especially key segments are thoroughly studied.
- Presence of major players and their wide product portfolio across developed countries is anticipated to further boost the growth of luxury travel market
What does the report include?
- The study on the global luxury travel market includes analysis of qualitative market indicators such as drivers, restraints, challenges, and opportunities
- Additionally, the market competition has been evaluated using the Porter’s five forces analysis
- The study covers qualitative and quantitative analysis of the market segmented on the basis of age and. Moreover, the study provides similar information for the key geographies.
- Actual market sizes and forecasts have been provided for all the considered segments
- The study includes the profiles of key players in the market with a significant global and/or regional presence
Who should buy this report?
- The report on the global luxury travel market is suitable for all the players across the value chain including raw material suppliers, luxury travel providers, distributors, suppliers, and retailers
- Venture capitalists and investors looking for more information on the future outlook of the global luxury travel market
- Consultants, analysts, researchers, and academicians looking for insights shaping the global luxury travel market
The luxury travel sector is expected to grow significantly as the global baby boomer population grows. Operators around the world are becoming increasingly conscious of the significant influence that baby boomers are having on the tourist sector (born between 1946 and 1964). In reality, this expanding segment of the population is already having a significant' economic impact' by requiring a variety of tourism services that were not previously considered. The baby-boomer sector is increasingly attracting travel companies and is frequently promoted throughout Europe, particularly in reaction to seasonal demand fluctuations. In the recent decade, the population of baby boomers has exploded. Some of the elements boosting baby boomer travel as a whole are increased technological tolerance among baby boomers and rising tendencies in overseas vacations. The significant population change is beginning to have a noticeable influence on the age group and vacation destinations. Over the next few years, the growing population of baby boomers is predicted to boost global tourism industry growth, which will in turn raise demand for luxury travel.
The global luxury travel market has been segmented based on age group and application. Between 2021 and 2028, the millennials sector is predicted to expand at the fastest rate, with a growth rate of over 9%. Millennials (those born between 1982 and 2000) have taken centre stage in all consumption marketplaces throughout the world. The population cohort accounts for a significant portion of the global population and is one of the household's highest wage earners. As a result, millennials are one of the most important customer segments for the tourist business. Millennials are more connected, technologically advanced, globally conscious, and willing to try out new products and ideas than preceding generations have ever been. In 2019, the baby boomers segment led the market, accounting for 35.3 percent of the total. Baby boomers have the most spending power of any generation. Baby boomers make up around 20% of the population yet spend 80% of the money in the tourism business. From fast travel booking to easy research and trip comparison to staying connected on the go, technology has most likely made travel easier for everyone. In terms of finances, boomer travel is distinct from that of other demographics. This is a group of people who have both the money and the time to spend – and are willing to do so.
Based on regions, the global luxury travel market is segmented into North America, Europe, Asia Pacific, Central and South America and Middle East & Africa. While established countries such as the United States have a larger proportion of the luxury travel market, demand in developing countries such as China and India have increased. The shift is attributed to a rise in the per capita income of middle-class travelers in developing countries. In 2019, Europe dominated the market, accounting for about 37% of the total. The European luxury travel business is driven by a large number of tourist locations, high discretionary incomes, and tourist-friendly government regulations. Asia-Pacific, on the other hand, is expected to develop at the fastest rate during the projection period. The number of luxury travelers has increased all around the world, with Asia Pacific seeing the most growth. This remained the primary source of growth for the global outbound travel business. With roughly 7 million trips per year, China dominates the Asia Pacific luxury travel business, followed by Singapore. With an increasing number of affluent tourists visiting beyond Asia, India is recognized as the region's fastest growing country.