Luxury Travel Market

Global Luxury Travel Market Size (2024 to 2029)

As per our analysis report, the global luxury travel market is expected to reach USD 4.37 billion by 2029 from USD 2.95 billion in 2024, growing at a compound annual growth rate (CAGR) of 8.2 % during the forecast timeline.

Current Scenario of the Global Luxury Travel Market

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 main driving factor growth of the 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.

Impact of COVID-19 on the Luxury Travel Market

The coronavirus has negatively impacted the growth of the Luxury Travel market. The increasing prevalence of viruses in the world forced governments to impose lockdowns 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 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 previous expectations.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Luxury Travel Market By Age Group

Baby boomers are people between 51 and 60 and had the largest market share in 2021 and 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.

Global Luxury Travel Market Type of Tour

The adventure and safari segment had the largest revenue share in 2021 and is supposed to retain its position in the future. The Culinary Travel and shopping segment are likely to be in the second spot in terms of market share by the end of the forecast period.

Global Luxury Travel Market By Type of Traveler

The absolute luxury segment had the highest revenue share in 2021 and 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

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 PLAYERS

The major key players in the luxury travel market are Abercrombie & Kent USA, LLC, Cox & Kings Ltd, Travcoa, Micato Safaris, Ker & Downey, Tauck, Thomas Cook Group PLC, Scott Dunn Ltd, Kensington Tours, Butterfield & Robinson In

DETAILED SEGMENTATION OF THE GLOBAL LUXURY TRAVEL MARKET INCLUDED IN THIS REPORT

This research report on the global luxury travel market has been segmented and sub-segmented based on age group, type of tour, type of traveler, and region.

By Age Group

• Millennials
• Generation X
• Baby boomers
• Silver hair.

Type of Tour

• Customized & private vacations
• Adventure & safari
• Cruise/ship expeditions
• Small group journeys
• Celebration & special events
• Culinary travel & shopping.

By Type of Traveler

• Absolute luxury
• Aspiring luxury
• Accessible luxury

By Region

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