Global Luxury Travel Market By Type of Tour (Customized and Private Vacations, And Others), By Age Group (Millennial, Generation X, And Others), By Types Of Traveler, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032
- Published date: Dec 2021
- Report ID: 11839
- Number of Pages: 300
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In 2022, the Global Luxury Travel market was valued at USD 1,328.1 billion and is expected to reach USD 2,762 billion in 2032. Between 2023 and 2032, this market is estimated to register the highest CAGR of 7.8%.
The industry is being propelled by the growing spending of elite travelers who want to explore new destinations and have unforgettable experiences. Industry evolution has been supported by the increasing popularity of micro-trips and the expanding tourism sector around the world. This target market was affected by the COVID-19 pandemic.
As luxury travel is an integral part of the distribution and wealth around the world, local economies depend on it. Luxury travelers pay for art, culture, restaurants, guides, sporting events, and other amenities. Travelers are looking for flexible itineraries that combine relaxation and entertainment to create their own one-of-a-kind experiences.
A large number of tourists, particularly wealthy travelers, are taking advantage of the rising popularity of cruises, yachts, and small ships. One of this market’s most affluent clients is thought to be High Net Worth Individuals (HNWIs). Therefore, businesses in this industry have been paying more attention to water-based luxury travel, like cruises.
For instance, special edition cruise features were announced by Abercrombie & Kent USA, LLC in November 2019. Over the course of the forecast period, it is anticipated that the expanding population of high-net-worth individuals (HNWIs) all over the world, one of the most important travel groups that will assist in resetting this industry will drive growth.
Blooming Travel and Tourism To Drive The Market Globally.
Over the years, the tourism industry has seen steady growth with increased numbers of international and domestic tours. Travelers travel for various reasons, including vacation, leisure, and recreation. The percentage of international tourists visiting the country has increased.
In addition, the increased availability of lodging packages that include deluxe rooms and top-end services has attracted more guests, which in turn has boosted revenue generation. Guests will be attracted to 5-star hotels that offer advanced technology, such as smart bathrooms and Wi-Fi. The demand for luxurious hospitality has increased due to the growing trend toward luxury and leisure travel. Wealthy consumers are the ones who use luxury services the most.
Therefore, it is likely that the growing wealth of the world will encourage market expansion. Business luxury hotels are also on the rise due to frequent bookings by business executives at luxury city hotels or airport hotels. 2L De Blend, Utrecht, Netherlands, received awards as the World Luxury Hotel in the luxury business hotel category twice consecutively in 2019, as well as 2020; this aparthotel opened in October 2018 and is located about 1 km from Utrecht Zuilen station.
Emergence Of Accommodation Sharing Facilities At Lower Prices To Restraint The Market Growth Globally.
Market growth will be impeded by high tariffs in star-rated hotels and the rise of low-cost shared accommodation platforms like Airbnb in low-income nations. The market growth would be further limited by the increasing presence of mid-scale and budget hotels in many countries around the world.
COVID-19 Impact Analysis:
The COVID-19 pandemic has had a severe impact on the economy, causing many industries to be affected. Luxury travel suffered a similar effect due to the unprecedented travel restrictions and lockdowns in various countries. Travel restrictions have had a negative impact on the tourism industry, leading to cancellations of many domestic as well as international tours and huge revenue losses.
Many tourism companies have had to close their doors due to lockdowns in various countries without any update on rollback. Tourism has been negatively affected by social distancing, work-from-home restrictions, social gathering restrictions, stay-at-home initiatives, and self- or mandatory quarantine.
Additionally, revenue losses have been seen in tourism-related sectors like catering, entertainment, lodging, and retail. It is expected that the financial uncertainty, which has led to limited spending on nonessential goods, will retrain the luxury travel market growth during the pandemic.
Many companies are using their technological innovations and initiatives to help society recover from this chaotic state. The changing customer mindset led to the development of contactless check-ins and outs. This is because travelers want to feel safe while traveling with an emphasis on hygiene.
People prefer to live in isolated rooms in isolated areas with a focus on remote locations rather than in hotels. Their catering needs have changed, and they now prefer to have a private chef as well as a maid for their daily cleaning. The government has launched a number of initiatives to support the tourism and travel sector, as it is an integral part of every country.
According to the Financial Express (a leading news site), the Government of India launched several initiatives, including National Skills Development Program, Service Exports from India Scheme (SEIS), as well as other support for the tourism sector. Incentives provided by the government under the SEIS scheme are helping the travel industry to offer attractive packages for visitors to India. These factors will likely boost the luxury travel market growth over the forecast period.
Type of Tour Analysis
The Luxury Cruise/Ship Expedition Segment Holds The Largest Market Share Globally.
Based on the type of tour, the luxury cruise/ship expedition segment held the largest market share of the global luxury travel market. It is expected to continue its share for the forecasted period. Luxury cruising is expected to get tripled by the next decade as it is gaining attraction.
MEA and Asia-Pacific are two potential markets that will see higher growth rates over the forecast period. The market for cruise/ship exploration is growing due to the introduction of new cruise design concepts, longer ships, more exotic destinations, and new activities and themes onboard and off-shore.
Some people prefer luxury cruising because it’s a more comfortable, relaxing, and beautiful way to travel. The luxury travel portfolio of Crystal Cruises has expanded to include luxury river cruises and yachting & aviation markets. These factors will likely contribute to the growth of luxury travel through the cruise/ship expedition segment over the forecast period.
Age Group Analysis
The Millennial Market Segment Holds The Largest Market Share Globally.
The millennial market segment dominates the market growth globally. In 2022, North America and Europe combined accounted for approximately 67.4% of the millennial luxury travel market’s revenue, with Europe accounting for approximately 33%.
Asia-Pacific and LAMEA are potential growth markets that are anticipated to experience significantly higher growth rates over the forecast period. The majority of people who travel are millennials, who spend an average of US$ 527 per day on trips, 62% less than their older counterparts, and are avid travelers. They typically seek leisure and cultural getaways.
Young people in the Millennial generation are driven by their wanderlust and a desire to break from the routine of their lives. They prefer short trips to countries with rich cultural traditions and other countries, and they also travel a lot to do local shopping. This category is also driven by honeymoons and romantic introductions. As a result, the millennial market sees an increase in demand for luxury travel as a result of the aforementioned factors.
Types of Traveller Analysis
The Aspiring Luxury Traveler To Drive The Market Growth Globally.
Aspiring Luxury Traveler to dominate the market growth globally. The millennial generation is the most likely to be part of this aspiring luxury class. They are relatively wealthy and prefer luxury short trips. The ‘newly wealthy’ are also included in this segment. They are ready to invest money in luxury travel and are the leaders of this segment.
Because of their high spending power, and the ability to afford luxury travel, aspiring luxury travelers typically take five business and pleasure trips each year. Aspirational and middle-income shoppers are encouraging the growth of premium brands and the second-hand market. Dubai, for example, has launched programs to encourage investment in midmarket hotels.
This includes the release of government land plots for three and four-star hotel projects. Luxury-seeking individuals prefer unique and exclusive destinations to shop. They have plenty of money but don’t want to pay a lot for luxury services. This group includes aspirational young people who are well-off and have little to no family responsibilities. The luxury travel market is expected to grow during the forecast period, with a growing number of aspiring luxury travelers.
Key Market Segments:
Based on the Type of Tours
- Customized and Private Vacations
- Adventure and Safari
- Cruise/Ship Expedition
- Small Group Journey
- Celebration and Special Events
- Culinary Travel and Shopping
Based on Age Group
- Generation X
- Baby Boomer
- Silver Hair
Based on Types of Traveler
- Absolute Luxury
- Aspiring Luxury
- Accessible Luxury
Technological Advancements in Emerging Destinations to Provide Enormous Investment Opportunities.
Technology has revolutionized the way people travel. High-speed internet, which allows people to book flights or hotels online by looking at online reviews and offering easy cancellations and online check-in and out, is expected to create huge opportunities for the market.
Luxury travel companies like Airbnb are giving people more freedom to explore different places, and digitalization allows them to find more information online. Technology has made luxury travel more personal.
This includes booking hotel rooms and tickets, checking in, unlocking doors, personalizing your stay, and even checking out. With the rise in travelers, Artificial Intelligence-based voice search and voice control using smart speakers and smartphones has transformed luxury travel. During the analysis period, market players are expected to reap the benefits of the increased number of luxury destinations like the Seychelles and Tanzania, AguasCalientes in Peru, Mirihi Island, Maldives, and other countries.
Rising Awareness Of Green Practices Is The New Trend In The Luxury Business.
The “Five Star Alliance” has listed a number of eco-friendly luxury hotels around the world. The hotels listed include Four Seasons Vancouver in Canada, Banyan Tree Bintan in Indonesia, Hyatt at Olive 8 in the United States, Shangri-La Hotel Bangkok, and The Oberoi Vanyavilas in India. The listing of these hotels is based on several factors, including local materials used, local labor force recruitment, and sustainable business practices.
Because of the shift in consumer preference to nature-based living, hotel owners are now focusing on providing services that don’t harm the environment. Marriott International, for example, announced in August 2019 that it would be removing single-use bath gels, shampoos & conditioning bottles from all its properties worldwide. The hotel company is aiming to reduce plastic consumption by 30% by eliminating such small bottles.
Europe Dominates The Luxury Travel Market Globally.
Because of its well-financially supported population, Europe is the dominant country in luxury travel. People spend more on travel to relax and restore their mental health after a hectic day. This can be aided by the rapid expansion of high-speed internet and growing travel connectivity.
The luxury travel market is driven by personal service, high-quality food and wine, safety measures, reliable transport, professional personnel, leisure luxury, political stability, and personalized service. There are many popular destinations in Europe, such as museums, Eifel Towers, castles, and enormous palaces, as well as cathedrals. Due to its largest investment in adventure tourism and food tourism, Asia Pacific is second in the luxury travel market.
There is a growing interest among the APAC region’s young people in adventure and trekking. The APAC region has the highest concentration of destinations, including museums and historical sites. Japan is a luxury destination in APAC that offers high-quality accommodation, a great culinary experience, and exceptional hospitality. Japan’s people are more inclined to attend cultural events such as maiko and geisha.
The highest number of five-star hoteliers providing exceptional services to tourists is another reason. This explains the rise in tourists. Although this number is lower than before the covid-19 epidemic, it shows that the APAC region’s luxury travel market has the potential to grow in the coming years. North America is the third-largest luxury travel market. North America is financially developed, so it’s easier for people to travel.
North American citizens are more inclined to visit historical and museum destinations. In North America, there are the highest numbers of luxury hotels, luxury travel industries, and destination places. This has a positive impact on the number of tour and travel guide employees. As an example, in May 2021, almost 312,000 people were working as tour and/or travel guides in the United States. All these factors contribute to the expansion of luxury travel in North America.
Key Regions and Countries:
- North America
- The US
- Western Europe
- The UK
- Rest of Western Europe
- Eastern Europe
- The Czech Republic
- Rest of Eastern Europe
- South Korea
- Australia & New Zealand
- Rest of APAC
- Latin America
- Costa Rica
- Rest of Latin America
- Middle East & Africa
- Saudi Arabia
- South Africa
- United Arab Emirates
- Rest of MEA
Market Share & Key Players Analysis:
Key players will likely introduce enhanced services to their newly opened deluxe facilities to attract more clients. This will increase competition among players to win new clients and keep regular visitors. Key players may also consider mergers and acquisitions to expand their brand portfolios and increase their market share. In February 2019, InterContinental Hotels Group announced that it had acquired Six Senses Hotels Resorts Spas. This market leader was one of InterContinental Hotels Group’s (IHG). This acquisition will likely strengthen IHG’s luxury brand portfolio.
Top Key Players in Luxury Travel Market:
- TUI Group
- Butterfield & Robinson Inc.
- Cox & Kings Ltd.
- Scott Dunn Ltd.
- Abercrombie & Kent USA, LLC
- Lindblad Expeditions
- Geographic Expeditions, Inc.
- Micato Safaris
- Exodus Travels Ltd.
- Travel Edge (Canada) Inc.
- Other Key Player
- Echo was launched by White Desert, a luxury travel company, in November 2021. It offers exclusive access to Antarctica for rare interior views and luxurious experiences.
- Abercrombie & Kent USA, LLC, announced a special edition cruise in November 2019. It features astronomy experts, including the first woman ever to walk in space. The company’s Antarctica and the Total Solar Eclipse Cruise will offer an exclusive experience with rare astronomical spectacles alongside experts
- January 2021: Marriott International, Inc. announced plans to open almost 100 facilities in Asia Pacific by 2021, with luxury brands like The Ritz-Carlton, St. Regis, W, The Luxury Collection, JW Marriott, and others.
Listed below are some of the most prominent Luxury Travel industry players.
Report Features Description Report Features Description Market Value (2022) US$ 1,328.1 Bn Forecast Revenue (2032) US$ 2,762.0 Bn CAGR (2023-2032) 7.8% Base Year for Estimation 2022 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Type Of Tour: Customized And Private Vacations, Adventure And Safari, Cruise/Ship Expedition, Small Group Journey, Celebration And Special Events, Culinary Travel, Shopping, And Others; By Age Group: Millennial, Generation X, Baby Boomer, Silver Hair, And Others; By Types Of Traveler: Absolute Luxury, Aspiring Luxury, Accessible Luxury. Regional Analysis 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; the Middle East & Africa – Algeria, Egypt, Israel, Kuwait, Nigeria, Saudi Arabia, South Africa, Turkey, United Arab Emirates, & Rest of MEA Competitive Landscape TUI Group, Butterfield & Robinson Inc., Cox & Kings Ltd., Scott Dunn Ltd., Abercrombie & Kent USA, LLC, Lindblad Expeditions, Geographic Expeditions, Inc., Micato Safaris, Exodus Travels Ltd., Travel Edge (Canada) Inc., Other Key Player. Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF)
Luxury Travel MarketPublished date: Dec 2021 • Formats:add_shopping_cartBuy Now get_appDownload Sample
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- TUI Group
- Thomas Cook Group
- Jet2 Holidays
- Cox & Kings Ltd
- Lindblad Expeditions
- Scott Dunn
- Abercrombie & Kent Ltd
- Micato Safaris
- Al Tayyar
- Exodus Travels
- Butterfield & Robinson
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