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Luxury Travel Market by Type (Customized & Private Vacations, Adventure & Safari, Cruise/Ship Expedition, Small Group Journey, Celebration & Special Events, Culinary Travel & Shopping) by Age Group (Millennial, Generation X, Baby Boomers, Silver Hair) by Type of Traveler (Absolute Luxury, Aspiring Luxury, Accessible Luxury): Global Industry Size, Share, Statistics and Forecast 2015 - 2027

Considering the ever-increasing pressures of adulthood in 2021, taking a holiday at least once a year is almost necessary. With all the daily office deadlines, household chores, and running around, one doesn't just want but also needs a break from time to time to rejuvenate themselves and come back stronger than ever before.

Perhaps that is why the global luxury travel market is on the rise again, despite the after-effects of the Covid-19 pandemic. If anything, it was valued at USD 0.912 trillion earlier this year and is expected to hit USD 1.8 trillion by the end of 2027, thanks to a CAGR rate of nearly 7.98%. Interestingly, it is not just the rich and famous who are spending heavily on fancy travel packages. Thanks to the advent of social media, even younger and middle-class customers are seeking more materialism in their travels.

Luxury Travel Market

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Why is that so? The obvious answer is rising disposable income amongst the youth in emerging countries like China, Indonesia, and India. This relatively richer generation operates with a "why not?" attitude. It is more than willing to dole out extra cash to make memories, and its Instagram accounts outshine those of its peers. There is also a growing preference for reliable transport and specialized services. This, coupled with more lenient visa application processes, has significantly boosted the luxury travel market.

Global luxury travel is a trillion-dollar industry. Amid COVID 19 situation, the revenue falls below the trillion-dollar market. However, the global travel industry is picking up pace with rapid vaccination and a decline in active and new cases of COVID 19 in a few countries. Showing rapid recovery, the luxury travel industry is predicted to garner revenue of USD 1,140.10 in 2021, with a growth rate of around 25% as compared to 2020.

Interesting Facts about Luxury Travel Industry

  • Luxury Travel is one of the worst affected sectors owing to COVID 19
  • Average expenditure incurred by luxury travelers ranges between USD 5,000 to USD 10,000 per trip
  • Over 40% of millennials consider cost is a barrier to their luxury traveling
  • Over 35% of millennials prefer luxury traveling
  • Americans spend the highest among all luxury travelers around the world

Adventure & Safari to Dominate Luxury Travelling 

Customized & Private Vacations, Adventure & Safari, Cruise/Ship Expedition, Small Group Journey, Celebration & Special Events, and Culinary Travel & Shopping are some of the major segments of luxury travel. Adventure & Safari will hold over 25% of the global luxury travel industry in 2020. Luxury travel services include a more premium experience in terms of accommodation, food, and entertainment. Think first-class airplane tickets, spas, rented yachts, and private islands. With online booking, one can easily browse through accommodation options, packaged deals, and potential discounts from anywhere in the world. Contact-less payment processes have also been deemed to influence the desire to travel positively.

Increased Air Transport Connectivity

Frequent and cheap flight connections have encouraged more and more people to head out to new countries and explore them in new ways. As a result, the 21st-century traveler focuses less on relaxation and more on experiencing a different culture, different foods, and adventure.

Personalized Travelling Experience for Customers Can be a Winning Imperative for Industry Participants

The global luxury travel market is a gold mine of possibilities. Considering the preference for personalized services, there are many small changes airlines, hotels, and tour operators can add to make their luxury customers at home. These include customized pillows for certain guests, beach-front dinner dates for honeymooners, sealing off certain parts of resorts or beaches, etc., for celebrities who wish to enjoy without being accosted by fans. Major companies are focusing on offering a luxurious experience to their customers. Major industry participants include but are not limited to TÜ Elite; TCS World Travel; Abercrombie & Kent USA; TUI Group; Micato Safaris; Butterfield & Robinson Inc.; Scott Dunn Ltd.; Cox & Kings Ltd.; Exodus travels; Lindblad Expeditions, TUI AG, Thomas Cook Ltd, Travcoa Corporation, Meredith Corporation LLC and Kensington Tours Ltd.

COVID 19 Pandemic Costs Hundred of Billions Loss to Luxury Travel Industry

The pandemic devastated the global travel industry last year. Revenues worth billions were lost, and thousands of tourism-related businesses ended up closing shop. The market is only now beginning to rise again, as travel restrictions ease and people become less fearful of catching Covid thanks to the vaccines.

Another threat to luxury travel is the lack of awareness about the facilities on offer. Generally speaking, the perks of luxury travel are meant solely for those who can afford them. However, as this rarely constitutes more than 1% of a country's population, demand is typically low. Also, prices vary from country to country, making it hard to pick where to go.

Baby Boomers to Lift the Luxury Travel Industry

Millennials, Generation X, Baby Boomers, and Silver Hair are major categories of the luxury travel industry based on age group. Among all age groups, baby boomers captured over 40% of the industry's total revenue. While millennials are expected to emerge as one of the essential segments over the forecast period.

Frequently asked questions about global Luxury Travel industry

Likewise other industries, COVID 19 also taken a toll on Luxury Travel market with over 28% decline in 2020 in its revenue as compare to 2019

North America is the largest regional market with highest share in the total volume of Luxury Travel consumed in 2020

Growing disposable income and rising demand for luxury and comfort

Safari & Adventure Travel segment dominated the Luxury Travel market in 2020

Baby Boomers was the largest distribution channel of Luxury Travel in 2020

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Published Date:  Nov 2021
Category:  Automotive & Transportation
Report ID:   60449
Report Format:   PDF
Pages:   120
Rating:    4.6 (49)
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