New York, March 08, 2023 (GLOBE NEWSWIRE) -- Market.us has published a new report on the global Luxury Travel Market was valued at USD 1,328.1 billion in 2022 and is anticipated to reach USD 2,762 billion by 2032, expanding at a CAGR of 7.8% between 2023 and 2032. The industry is being driven by the increase in the elite travellers around the world who wants to travel and explore new destinations and wanted to have unforgettable experiences.
The growth of the market is dominated by the increase in the popularity of the micro-trips and the expanding tourism sector around the world. The market was badly affected by the COVID-19 pandemic, due to the travel restriction imposed by the government. The local economies depends on it, as luxury travel is an important part of the wealth and distribution around the world. Travellers generally looks for flexible itineraries which can offer both relaxation and entertainment to create their one-of-a-kind experience.
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Key Takeaway:
- By Type of Tour, in 2022, the Luxury Cruise/Ship Expedition segment has generated highest revenue in Global Luxury Travel Market share in 2022.
- By Age Group, the Millennial Market segment is dominating the market and it is growing at significant rate over the forecast period 2023 to 2032.
- In 2022, Europe Region dominated the luxury travel market with the highest revenue share of 33.8%.
- APAC Region has held second Position in revenue share in 2022.
- Europe will grow at a significant rate from 2023-2032.
A large numbers of tourists particularly the wealthy travellers, are enjoying the most popular Cruises, Yachts, and small ships. One of the markets most commonly clients are the High Net Worth Individuals. Which resulted the businesses in the industry to fous more on the water based luxury travels, like cruises.
Factors affecting the growth of Luxury Travel industry?
There are several factors that can affect the growth of the Luxury Travel industry. Some of these factors include:
- Increase in disposable income: With the growth of an economy, the disposable income of people increases. This in turn leads to more people being able to enjoy luxury travel.
- Expansion of air travel: Increasing air travel facilities has enabled people to travel to distant places with ease and comfort. This has allowed luxury travel to become more accessible.
- Technological advancement: The development of technology has made the whole process of booking a luxury holiday much easier. People are able to find information about a destination, book tickets, and make reservations online.
- Emergence of new destinations: With the emergence of new destination countries, the luxury travel industry has been able to expand its reach and offer more experiences to its customers.
- Emergence of new luxury travel services: The introduction of new luxury travel services such as private jets, yacht charters, and luxury tours has made the experience more enjoyable and unique.
- Increase in social media influence: Social media has played a huge role in the growth of the luxury travel industry. People are able to share their experiences, which in turn entices more people to travel to certain locations.
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Top Trends in Luxury Travel Market
The “Five Star Alliance” has listed various numbers of eco-friendly luxury hotels around the world. The hotels listed include Banyan Tree Bintan in Indonesia, Four Seasons Vancouver in Canada, Shangri-La Hotel Bangkok, Hyatt at Olive 8 in the United States, and The Oberoi Vanyavilas of India. These hotels are listed on the basis of several factors including local labour force recruitment, local material used, and sustainable business practices.
The shift of the consumer preference on the nature-based living, hotel owners are focusing more on providing eco-friendly services to the customers. For example, Marriott International, in August 2019, announced that it will remove single-use bath gels, shampoos and conditioning bottles from all the properties worldwide. The aim of the hotel company is to reduce the use of the plastic consumption by 30% by eliminating such small bottles.
Market Growth
The rise in the people demanding for unique and exotic holiday experiences is enhanced by the rise in the disposable income. The trend in the middle and upper middle class population, and people who likes to spend more time with their family, due to busy lifestyles are the factors that drives the growth of the luxury travel market globally. To have a most memorable experience, people mostly choose to go adventure trips, cruising, and unique holidays abroad. The fluctuating economies in different regions is the threat for the growth of the luxury travel market.
Regional Analysis
Because of the well financially supported population, Europe is the dominating region holding the maximum share of the luxury travel market. People spend more on travel to relax their mind and restore their mental health after a hectic day. This can be boosted by the rapid expansion of high-speed internet and the growing travel connectivity.
The luxury travel market is driven by high quality food and wine, personal service, reliable transports, safety measures, leisure luxury, professional personal, political stability, and personalized service. There are many destination which are popular among the Europeans such as Muesums, Eifel Towers, castels and enormous places, etc.
Asia-Pacific holds the second largest luxury travel market globally due to its large investments in adventure tourism and food tourism. Apac regions Young people are taking interest in adventure and trekking. The APAC regions have the highest number of destination which also includes museums and historical sites.
North America is the third largest luxury travel market. As North America is financially developed so it’s a trend among the people to travel and enjoy their life to the fullest. In North America there are highest number of luxury travel industries, luxury hotels and destination. Which gives a positive impact on the increasing number of tours and guides employees.
Competitive Landscape
There are many key players who are likely to introduce enhanced services to the newly opened deluxe facilities to attract more clients. Which will eventually increase competition among the players to win new clients and to to keep regular visitors. Key players may also like to consider mergers and acquisitions to expand their brand portfolios and increase their market share.
Scope of the Report
| Report Attribute | Details |
| Market Value (2022) | USD 1328.1 Billion |
| Market Size (2032) | USD 2762 Billion |
| CAGR (from 2023 to 2032) | 7.8% |
| Europe Revenue Share | 33.8% |
| Historic Period | 2016 to 2022 |
| Base Year | 2022 |
| Forecast Year | 2023 to 2032 |
Market Drivers
Steady growth has been observerd with an increase in number of international and domestic tours over the years. Travellers travel for various reasons, which includes vacation, leisure, and recreation.
The percentage of international tourists visiting the country has increased. In addition, the availability of lodging packages which includes deluxe rooms and top-end services has attracted more guests has increased which resulted in boosted revenue generation.
Guests attracts to the 5-star hotels which provides advanced technologies like smart bathroom and WiFi. The growing trend for luxury travel and leisure travel has increased the demand for luxurious hospitality. Luxury products and services are used by the Wealthy consumers, which means that the increase in wealth of the world may encourage the luxury travel market growth.
Market Restraints
Market growth may be affected by the high tariffs in star-rated hotels and the rise of low cost affordable shared accommodation platforms like Airbnb are rising in the nations with low income. The increasing in the presence of mid-scaled and budgets hotels in many countries around the world may limit the market growth globally.
Market Opportunities
Technology has revolutionalized by how people love to travel. High speed internet is the main key, which allows people to book flights and hotels online. By looking at the reviews and offerings, and in addition to opt for easy cancellations and online check-in and outs, are the reason to create great opportunities for the market.
Luxury travel companies like Airbnb are giving people more of an opportunities to travel and explore different places around the world, and digitalization allows them to find more information online. Technology has made luxury travel more personal. Which includes booking hotel rooms and tickets, unlocking doors, checking in, personalizing your stay, and even checking out. During the forecasted period the key market players may take the advantages and benefits of Seychelles and Tanzania, AguasCalientes in Peru, Mirihi Island, Maldives and other countries.
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Report Segmentation of the Luxury Travel Market
Type of Tour Insight
Based on the type of tours, the Luxury cruise/ship expedition segments held largest market share of the Global Luxury Travel Market. The segment is expected to dominate for the forecasted period. As the Luxury cruise ship is gaining attraction it is expected to get tripled during the forecasted period.
MEA and APAC are the two potential markets that will see a significant growth rate during the forecasted period. The market for the cruise/ship exploration is growing due to technological advancement in the new curise design concepts, longer ships, more exotic destinations, and new activities and themes onboard and off-shore.
Some of people prefer luxury cruising because it is more comfortable, relaxing and beautiful way of travelling. These are the factors which are likely to contribute the growth of the luxury travel market through the cruise/ships expedition segments over the forecast period.
Age Group Insight
The millennial market segment dominates the market growth globally. In 2022, North America and Europe combined accounted for approximately 67.4% of the total Millennial luxury travel market’s revenue, with Europe accounting for 28%.
APAC, MEA and latin America are the potential growth market, which are expected to experience a significant growth over the forecasted period. The majority people travel around the world are millennials, who spends an average of $527 per day. These people prefer short trips to the countries with rich in cultural tradition and other countries, they also travel a lot to do local shopping. This category is also driven by honeymoons and romantic introductions. These are the factor for which millennial market sees a increase in demand for the luxury travel market globally.
Types of Travellers Insights.
The millennial generations are most likely to be a part of this aspiring luxury class. These generations are relatively wealthy and prefer luxury short trips. The ‘newly wealthy’ are also included in this segment. They are ready to invest in the luxury travel and they are the leaders of the segment.
Aspiring luxury travellers typically take five business and pleasure trips each years because of their high spending power and the ability to afford luxury travel. Growth of the premium brand and second hand market is encouraged by the aspirational and middle-income shoppers. For example, Dubai has launched programs to invest in mid market hotels, which includes release of government land plots for three and four star hotels projects.
Unique and exclusive destinations to shop is preferred by Luxury-seeking individuals. This group also includes aspirational young people who are well-off and have little to no family responsibilities. Thus the Luxury Travel Market is expected to grow with increasing number of aspiring luxury travellers.
Recent Development of the Luxury Travel Market
- White Desert launched ‘Echo’, a luxury travel company in November 2021. It offers exclusive access to Antarctica for rare interior views and luxurious experiences.
- A special edition cruise was announced by Abercrombie & Kent USA, LLC in November 2019. It features astronomy experts, including first women ever to walk in the space. The company's Antarctica and the Total Solar Eclipse Cruise will offer an exclusive experience with rare astronomical spectacles alongside experts
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Market Segmentation
By Type of Tours
- Adventure and safari
- Customized and private vacations
- Small group journey
- Cruise/ship expedition
- Culinary travel and shopping
- Celebration and special events
- Others
By Age Group
- Generation X
- Millennial
- Silver hair
- Baby Boomer
- Others
By Types of Traveler
- Aspiring Luxury
- Absolute luxury
- Accessible Luxury
By Geography
- North America
- The US
- Canada
- Mexico
- Western Europe
- Germany
- France
- The UK
- Spain
- Italy
- Portugal
- Ireland
- Austria
- Switzerland
- Benelux
- Nordic
- Rest of Western Europe
- Eastern Europe
- Russia
- Poland
- The Czech Republic
- Greece
- Rest of Eastern Europe
- APAC
- China
- Japan
- South Korea
- India
- Australia & New Zealand
- Indonesia
- Malaysia
- Philippines
- Singapore
- Thailand
- Vietnam
- Rest of APAC
- Latin America
- Brazil
- Colombia
- Chile
- Argentina
- Costa Rica
- Rest of Latin America
- Middle East & Africa
- Algeria
- Egypt
- Israel
- Kuwait
- Nigeria
- Saudi Arabia
- South Africa
- Turkey
- United Arab Emirates
- Rest of MEA
Key Market Players
- Butterfield & Robinson Inc.
- TUI Group
- Scott Dunn Ltd.
- Cox & Kings Ltd.
- Lindblad Expeditions
- Abercrombie & Kent USA, LLC
- Micato Safaris
- Geographic Expeditions, Inc.
- Travel Edge (Canada) Inc.
- Exodus Travels Ltd.
- Other Key Player
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- Luxury Hotel Furniture Market: is expected to exhibit moderate growth at a CAGR of 4.2% during the forecast period 2023-2032.
- Luxury Safari Tourism Market: was valued at USD 20 billion in 2022 and is projected to grow at 15.2% CAGR from 2023 to 2032.
- Cruise Liners Market: was valued at USD 6.22 billion in 2023, and is projected to reach USD 22.3 billion by 2033, at a CAGR of 12.3%.
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