The global luxury travel market size was valued at $891 billion in 2018 and is expected, grow at a CAGR of 7.9% during 2019–2026.
Luxury travel services covers most desirable and premium experience in terms of luxurious accommodations, convenient transport facilities, and authentic travel experience. The service providers aim to provide outstanding services to its travelers.
Private jet planes, spas, special menus, private island rentals, and private yacht are some of the unique services offered by the stakeholders to the travelers. Travelers, nowadays, focus on experimenting with destinations to gain experience in terms of cultures, foods, and other experiences. To gain a valuable and unforgettable experience, people increasingly opt for unique trips, which include cultural visit, cruising, and adventure activities.
Luxury Travel Market
During the forecast period (2019–2026), the luxury travel market is projected to be the fastest growing segment of the travel industry worldwide. The key drivers of rising luxury travel trend include inclination of people toward unique and exotic holiday experiences, increase in the middle- & upper-class disposable income & related expenditure, and growth in need and interest of people to spend more time with family.
Although the key developed countries such as the U.S. hold a highest revenue share of the luxury travel market, there has been a rise in demand for international luxury travel in developing countries such as China and India. This drift is due to the increase in the per capita income of middle-class travelers in the developing countries.
Luxury Travel Market By Type
Adventure and safari segment dominates the global luxury travel market and is expected to retain its dominance throughout the forecast period.
Luxury travel market segments includes type of tours, age groups, types of travelers, and region. Based on type of tour, the market is divided into customized & private vacations, adventure & safari, cruise/ship expedition, small group journey, celebration & special events, and culinary travel & shopping. By age group, it is classified into millennial, generation X, baby boomers, and silver hair. By type of traveler, it is categorized into absolute luxury, aspiring luxury, and accessible luxury. Region-wise, it is studied across North America, Europe, Asia-Pacific, and LAMEA.
Baby boomers aged between 51 and 69 years dominate the luxury travel market, primarily on account of the relatively higher number of annual visits, higher disposable income & savings, priority to “travel” in this age group, and fewer health constraints as compared to silver hair population (69 and above age group). Baby boomers spend the most on their travelling as travel is considered to be the most preferred leisure activity among this age group. Europe and Caribbean are the popular travel destinations among these travelers. Second Honeymoon, Eco tourism, medical tourism, adventure tourism, bucket list, and passion tourism are some of their major objectives for travelling.
Luxury Travel Market By Age Group
Millennial age group segment is projected to grow with fastest CAGR during the forecast period
Baby boomers primarily consists of independent travelers, who have seen and visited many places, have well-paying jobs, and no child responsibilities because their children are settled (either married off, moved out, or have their own job). These travelers have a wide bucket list ranging from taking a world cruise, long vacation on a luxury cruise liner, visiting exotic ports such as Easter Island, French Polynesia, and South Africa, enjoying an upscale safari in search of the Big Five, visiting multiple and adventure destinations such as Kenya and Tanzania, and discovering the highlights of Australia including Sydney, the Great Barrier Reef and rainforest. After baby boomers, Gen X comprising individuals between the age group of 31-40 years, spend the most on luxury travel. These travelers generally prefer multi-generation trip, which refers to, traveling along with grandparents, parents, and kids.
There has been an upsurge of luxury travelers across the globe with highest growth seen in the Asia-Pacific region. It remained the key growth driver of the market. China leads the Asia-Pacific luxury travel market, with nearly 7 million outbound trips annually, followed by Singapore. India is identified to be the fastest growing country in the region with an increasing number of the affluent travelers travelling to destinations outside Asia.
Luxury Travel Market By Traveler Type
Absolute Luxury segment is expected to grow at a highest CAGR of 8.1% during the forecast period.
The growth luxury travel market is attributed to the increase in disposable income and growth in middle class population in countries such as China, Hong Kong, India, and Malaysia. As per recent statistics, Asia-Pacific millionaires now control more wealth than their peers in North America. In terms of future spending options, travel has been recognized as the top priority with greater focus on unique luxury experiences and adventure activities.
The luxury travel industry has emerged as one of the fastest growing sectors to contribute significantly to the global economic growth and development. Growth in disposable income and increase in upper middle class expenditure has raised the demand for higher service standards. To capitalize the same, market players formulate unique strategies to target the growth in middle class segment; for instance, hiring qualified individuals who can speak international language and communicate easily with travelers. This rise in demand for unique travel experience offers tremendous opportunists for the market players to remain competitive.
Luxury Travel Market By Region
Europe dominates the Global Luxury Travel market and is expected to grow with a CAGR of 5.8% during the forecast period
Key players profiled in luxury travel market report are Abercrombie & Kent USA, LLC, Cox & Kings Ltd, Travcoa, Micato Safaris, Ker & Downey, Tauck, Thomas Cook Group PLC, Scott Dunn Ltd, Kensington Tours, and Butterfield & Robinson Inc. Product launch is the key growth strategy adopted by established players such as Thomas Cook and Tauck to gain maximum luxury travel market share. Other players in the luxury travel industry value chain include TUI Group, Zicasso, Inc., Black Tomato, Backroads, Lindblad Expeditions, and Exodus travels.
Key Benefits of Luxury Travel Market:
- The study provides an in-depth analysis of the global luxury travel market growth with current trends and future estimations to elucidate the imminent investment pockets.
- The report provides a quantitative analysis of the reverse osmosis membrane market share from 2018 to 2026 to identify the prevailing opportunities.
- The report provides a quantitative analysis from 2014 to 2026, which is expected to enable the stakeholders to capitalize on prevailing luxury travel market trends.
- In-depth analysis and the luxury travel market size and segmentation assists in determining the prevailing opportunities.
- The report provides actual historical figures for 2014 and 2018 and provides luxury travel market forecast from 2019 to 2026, considering 2017 as base.
- Competitive intelligence in luxury travel market analysis highlights the business practices followed by leading players across various regions
Luxury Travel Key Market Segments:
By Type of Tour
Customized & Private Vacation
Adventure & Safari
Small Group Journey
Celebration & Special Event
Culinary Travel & Shopping
By Age Group
Generation X (31–40)
Baby Boomers (41–60)
Silver Hair (60 and above)
By Type Of Traveller
Rest of Europe
Rest of Asia-Pacific
Market Players In Value Chain:
Abercrombie & Kent USA, LLC
Cox & Kings Ltd
Ker & Downey
Thomas Cook Group PLC
Scott Dunn Ltd.
Butterfield & Robinson Inc.
Authors: Aniket Kadam, Roshan Deshmukh. Allied Market Research