The global luxury travel market is expected to be valued at USD 354.7 billion by 2025. The most desirable destination, luxurious accommodation, convenience of transportation and genuine experience is characterized by a luxurious travel market. The goal of luxury travel is to give its travelers exotic experience. The luxury travelers are provided with the unique services of private jet planes, Spas and special menus, private island rentals and private yacht.
Today, travelers like to experiment with destinations in order to gain more experience and to absorb new cultures around the world. People are increasingly choosing unique trips, including cultural visits, cruising or adventure activities to gain a worthy and unforgettable experience. The luxury travel market is projected to become the world's fastest growing travel sector. The main drivers of rising luxury tourism trends include people's inclination to uniquely exotic holidays, increasing disposable revenues and associated cost in the middle and high class, and people's growing necessity and interest to spend longer with families, due to increasingly busy lifestyles.
In the last couple of decades, luxury tourism has uninterruptedly grown into one of the world's biggest and fastest growing economic sectors. The traveling industry is growing to meet its demands as new rich citizens emerge in various parts of the world. Emerging Middle classes seek the substantive aspect of luxury journeys, more mature markets seek new luxuries. The supply, and in particular the demand, of a certain category of the tourism sector represents luxury travel.
Based on application, the global luxury travel market is fragmented into adventure travel, personalized vacations, cruising and yachting, culinary travel and others. The adventure travel segment accounted for the largest share of 48.8% in 2017 and is expected to witness a robust growth over the forecast period. Increasing inclination of travelers towards adventure travel such as safaris is a major trend in the market. Fly in safaris, mobile guided safaris, self-drive safaris, etc. are some of the major types. The development of a tourism market has required significant foreign direct capital (FDI) investments in Africa and in other emerging markets in order to build up necessary infrastructures and super-structures, like hotels, charter services and airline access. Primary foreign direct investors in South Africa, for example, come from countries like the United Kingdom, Germany, the Netherlands, the US and France. These countries are also the main markets for international visitors to the region, which suggest a strong correlation between visiting countries and direct investment sources. Investor markets vary accordingly for the various sub sectors of tourism — French companies, for example, tend to concentrate on wine companies, United Kingdom. And US investors are developing safari and tourism adventure, and German customers prefer to have vacation homes.
As a strategic step, several companies in the global luxury travel market are following expansions and acquisitions. The major players in the global luxury travel market include Abercrombie and Kent, Cox and Kings, Micato Safaris, The Luxury Safari Company Ltd., Ker & Downey, Thomas Cook, Scott Dunn, Butterfield and Robinson and Natural Habitat Adventures among others.
Key segments of the global luxury travel market
Age Group Overview, 2015-2025 (USD Million)
- Generation X
- Baby Boomers
- Silver Hair
Application Overview, 2015-2025 (USD Million)
- Adventure Travel
- Personalized Vacations
- Cruising and Yachting
- Culinary Travel
Regional Overview, 2015-2025 (USD Million)
- North America
- Rest of Europe
- Asia Pacific
- Southeast Asia
- Rest of Asia Pacific
- Rest of the World