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Luxury Travel Market Research - Segmented by Type of Traveller (Absolute Luxury, Aspiring Luxury, and Accessible Luxury), Age Group (Millennial, Generation X, Baby Boomers, and Silver Hair), Type of Tour (Customized & Private Vacations, Adventure & Safari, Cruise/Ship Expedition, Small Group Journey, Celebration & Special Events, and Culinary Travel & Shopping) and Region: Opportunity Analysis and Industry Forecast, 2022 to 2027

Published: January, 2022
ID: 10693
Pages: 175
Formats: report pdf report excel report power bi report ppt

Luxury Travel Market Size and Growth 2022-2027:

The Luxury Travel market was valued at USD 1.85 Trillion in 2021 and is expected to reach USD 2.4 Trillion by the end of 2026 with a CAGR of 7.9% during the outlook period 2022 - 2027.

The market of luxury travel has gone up to a whole new level in recent times as the rich prefer this more than standard travel and are heavily spending on luxury travel packages. The middle-class consumers of today are shifting their focus towards urbanization and looking for more materialism in luxury travel. The increasing options for luxury travel for people are also improving market dynamics.

Market Drivers:

The main factor driving the growth of the Global Luxury Travel Market is an increase in personal income of people which allows them to spend more on holidays and travel. The growing demand for the accumulation of memories when traveling is a major positive influence on the growth of the luxury travel industry.  Increasing tourism due to government initiatives and other factors has also boosted the developments in this market. Growing travelers' preference for personalized service and reliable transport has also increased the demand for travel options that are more luxurious and provide the best facilities. Growing political stability across the globe regarding gender, ethnicity, sexual orientation, human rights, racism, citizenship, and less hustle in visa offerings are influencing people’s decisions over potential travel destinations. The increasing trend for online searches about travel destinations has also supported the expansion of the Global Luxury Travel Market.

Market Restraints:

The major factor hindering the growth of the market is the lack of awareness among people about the facilities available during luxury travel and how it is a unique experience. This decreases the growth rate of the market. Another major factor hindering the business is the variation in prices from country to country regarding luxury travel.

LUXURY TRAVEL MARKET REPORT COVERAGE:

REPORT METRIC

DETAILS

Market Size Available

2021 – 2026

Base Year

2021

Forecast Period

2022 - 2027

CAGR

7.9%

Segments Covered

By age group, Based on the type of tour, By type of traveler

Various Analyses Covered

Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities

Regions Covered

North America, Europe, APAC, Latin America, Middle East & Africa

Market Leaders Profiled

Abercrombie & Kent USA, LLC, Cox & Kings Ltd, Travcoa, Micato Safaris, Ker & Downey, Tauck, Thomas Cook Group PLC

Luxury Travel Market Segmentation:

BY AGE GROUP:

By age group, the market is classified into millennials, generation X, baby boomers, and silver hair. Baby boomers are people between 51 and 60 and had the largest market share in 2021and is expected to grow at a healthy rate in the future. The increased savings along with a desire to travel at this age make this segment the most dominant in the market. The silver hair population or people above 69 had the lowest market share mainly due to the fact that traveling might be exhausting for people of that age.

BASED ON THE TYPE OF TOUR:

Based on the type of tour the market is divided into customized & private vacations, adventure & safari, cruise/ship expeditions, small group journeys, celebration & special events, and culinary travel & shopping. The adventure and safari segment had the largest revenue share in 2021and is supposed to retain its position in the future. Culinary Travel and shopping segment is likely to be in the second spot in terms of market share by the end of the forecast period.

BY TYPE OF TRAVELER:

Luxury Travel Market is categorized into absolute luxury, aspiring luxury, and accessible luxury. The absolute luxury segment had the highest revenue share in 2021and is supposed to dominate others in the future. The aspiring luxury segment is predicted to grow at a healthy rate during the outlook period.

Regional Analysis:

  • North America 
  • Europe 
  • Asia Pacific 
  • Latin America 
  • The Middle East and Africa 

The North America region is foreseen to grow at a good rate during the outlook period. The increasing population of the region coupled with an increase in disposable income is propelling the region’s growth rate. The surge in government initiatives to promote tourism in the area is positively impacting the region’s growth rate. The growing awareness among people about the facilities of luxury travel is also a major cause for a positive growth rate.
 
The Europe region is expected to dominate other segments and continue to grow at a healthy rate during the envisioned period. The increasing income of people is also boosting the region’s prospects. The rising initiatives by the governments promoting the historical places of Europe are boosting the local growth rate. It is a major contributor to the revenue of the regional business.

The Asia Pacific is projected to showcase the highest growth rate during the conjecture period. The increasing population rate particularly in countries like India and China is responsible for the region’s highest growth rate. India is supposed to grow as a dominant player in the Asia Pacific area with the rising number of travelers to different parts outside this continent. China is currently the leader in the Asia-Pacific luxury travel market, with almost 7 million outbound trips recorded every year, with Singapore in second position.

Key Market  Involved in  Luxury Travel Market:

Key players profiled in the global luxury travel market report are 

  1. Abercrombie & Kent USA
  2. LLC, Cox & Kings Ltd
  3. Travcoa,
  4. Micato Safaris, Ker & Downey
  5. Tauck
  6. Thomas Cook Group PLC
  7. Scott Dunn Ltd
  8.  Kensington Tours
  9. Butterfield & Robinson Inc

Recent Developments:

  • On October 20, The Ambercombie and Kent USA announced resuming operating small groups of tourists in Africa.
  • The Enforcement Directorate (ED) in India arrested Cox & Kings promoter Peter Kerkar in a money laundering case linked to the alleged loan default at the Yes Bank. 

COVID-19 Impact on Luxury Travel Market:

The coronavirus has negatively impacted the growth of the Luxury Travel market. The increasing prevalence of viruses in the world forced the governments to impose lockdown so that movement can be restricted and the spread of the virus can be controlled. This resulted in a decrease in spending to almost zero and thus the bookings about to be done had to be canceled which resulted in a major loss for the luxury travel market. 

COVID-19 has also forced governments to issue some travel advisories for all the people traveling and this may require getting quarantined for 14 days which is negatively impacting the growth of the Luxury Travel Market. With the conditions of lockdown easing all around the world, we may see the luxury travel market back on track by the end of 2022, and it may even surpass the previous expectations.

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