The global luxury travel market was valued at $648.2 billion in 2023, and is projected to reach $1655.5 billion by 2029, growing at a CAGR of 9.9% from 2023 to 2029.
Luxury travel services encompass the epitome of opulent experiences, offering travelers sumptuous accommodations, seamless transportation, and authentic journeys. Service providers are dedicated to delivering exceptional services to cater to the discerning tastes of travelers. Among the unique offerings from stakeholders are private jet charters, rejuvenating spa experiences, curated gourmet menus, exclusive island rentals, and luxurious yacht charters. Modern travelers are increasingly drawn to exploring new destinations in search of cultural immersion, culinary delights, and novel experiences. To craft unforgettable memories, individuals are gravitating towards bespoke trips that include cultural expeditions, oceanic cruises, and exhilarating adventure activities. Consequently, the luxury travel sector has emerged as one of the most rapidly expanding segments, making a substantial contribution to global economic growth and development.
The surge in disposable incomes and increased spending by the upper-middle class have fueled the demand for elevated service standards. To capitalize on this trend, market players are devising innovative strategies, including the recruitment of proficient multilingual staff who can effortlessly engage with travelers from diverse backgrounds. This growing appetite for distinctive travel experiences presents substantial opportunities for market participants to maintain their competitive edge.
Projections indicate that the luxury travel market is poised to be the fastest-growing segment within the global travel industry in the foreseeable future. This surge is propelled by several factors, including a preference among individuals for unique and exotic holiday adventures, augmented disposable incomes and spending capacities among the middle and upper classes, and a heightened desire among people to spend quality time with their families. The growth of the luxury travel market can be attributed to the rising affluence and expanding middle-class populations in countries such as China, Hong Kong, India, and Malaysia. Recent statistics reveal that millionaires in the Asia-Pacific region now possess greater wealth than their counterparts in North America. As people contemplate their future expenditures, travel consistently emerges as the top priority, with an emphasis on distinctive luxury experiences and adventurous escapades. Although the United States currently commands the highest revenue share of the luxury travel market among developed nations, there is a discernible surge in demand for international luxury travel experiences in developing countries like China and India. This shift is a direct consequence of the rising per capita incomes of middle-class travelers in these burgeoning economies.
The global impact of the COVID-19 pandemic has reverberated across all industries, with the tourism sector suffering a severe blow. This downturn has rippled through related sectors such as travel agencies, hospitality, tour operators, and various modes of transportation. Nearly 90% of the global population adjusted their lifestyles to adhere to numerous travel restrictions, while the remaining individuals remained at home, apprehensive about the virus. Consequently, the tourism industry ground to a near halt.
According to an article published by the World Travel and Tourism Council (WTTC) in August 2020, the COVID-19 pandemic is estimated to result in a staggering revenue loss of nearly $25 billion for the tourism industry and the loss of nearly 100 million jobs worldwide. Furthermore, the implementation of lockdown measures and social distancing norms in nearly every country led to the suspension of flights, the cessation of train services, and the halting of almost all public transport operations. With social distancing becoming a new norm in public spaces and face masks and gloves becoming daily essentials, people increasingly prioritize safety within the confines of their homes, contributing to a decline in the number of travelers.
Market analysis reveals that the luxury travel market is segmented based on various criteria, including types of tours, age groups, types of travelers, and geographical regions. Regarding types of tours, the market encompasses customized and private vacations, adventure and safari experiences, cruise and ship expeditions, small group journeys, celebrations and special events, as well as culinary and shopping-focused travel. Age groups are categorized into millennials, generation X, baby boomers, and silver-haired travelers. Types of travelers are divided into those seeking absolute luxury, aspiring luxury, and accessible luxury. Regionally, the market is analyzed across North America (including the U.S., Canada, and Mexico), Europe (comprising Germany, France, Spain, Italy, and the rest of Europe), Asia-Pacific (encompassing China, India, Singapore, and the rest of Asia-Pacific), and LAMEA (covering the Middle East, Latin America, and Africa).
Regarding the type of travel experience, the cruise and ship expedition segment held approximately 5.6% of the global luxury travel market share in 2023, and it is projected to maintain this share throughout the luxury travel market forecast period. Luxury cruising is garnering increasing interest and is expected to triple in popularity over the next decade. From a growth perspective, the Asia-Pacific and LAMEA regions are poised as two potential markets with considerably higher growth rates anticipated during the forecast period. The growth of the cruise and ship expedition market is propelled by the introduction of innovative cruise designs, varying ship lengths, the exploration of new and exotic global destinations, as well as the introduction of new on-board and on-shore activities and themes. Luxury cruising primarily appeals to the silver-haired demographic due to its convenience, relaxation, and heightened sense of grandeur. Notably, Crystal Cruises' expansion into the luxury river cruise and yachting & air travel sectors has further bolstered the growth prospects of the luxury travel market within the cruise and ship expedition segment during the forecast period.
In terms of age groups, the millennial segment achieved a valuation of $83,842.5 million in 2023 and is anticipated to reach $252,050.1 million by 2029, with a notable compound annual growth rate (CAGR) of 11.1%. North America and Europe jointly accounted for approximately 68.4% of the millennial luxury travel market revenue in 2023, with North America contributing around 28.1% of this share. In terms of growth potential, the Asia-Pacific and LAMEA regions emerge as promising markets, expected to experience significantly higher growth rates over the forecast period. Millennials are enthusiastic travelers, constituting a substantial portion of the traveling population. On average, millennials spend $527 per day on their trips, which is 62% less than their older counterparts. They are often inclined toward cultural and leisurely breaks, driven by a strong desire for exploration and a yearning to break the monotony of daily life. These young travelers tend to prefer short getaways to culturally diverse and distinct countries, with local shopping forming a major aspect of their travel experiences. Additionally, honeymoon and romantic getaways hold significant appeal within this demographic. Collectively, these factors contribute to increased demand in the luxury travel market through the millennial segment.
In alignment with luxury travel market trends, the aspiring luxury segment achieved a valuation of $202,139.7 million in 2022 and is forecasted to reach $513,454.9 million by 2029, with an impressive compound annual growth rate (CAGR) of 8.7%. The aspiring luxury category is primarily comprised of millennials who possess a moderate level of wealth and favor brief yet lavish getaways. This segment also includes the 'newly rich,' individuals eager to invest in luxury travel experiences and serve as frontrunners in this demographic. Aspiring luxury travelers, owing to their substantial spending power and the ability to afford luxurious journeys, embark on an average of five business and leisure trips annually. Middle-income individuals and aspirational consumers are fueling the growth of upper premium brands and the second-hand luxury market. Destinations like Dubai have initiated programs to encourage investments in midmarket hotels, including releasing government land plots for three and four-star hotel projects. Aspiring luxury travelers gravitate toward exclusive and unique shopping destinations, often overseas, although they possess the means to indulge, they tend to exhibit a comparative restraint in their pursuit of luxury services. This segment comprises young, aspirational individuals who earn significantly and have limited family responsibilities. The increasing number of aspiring luxury travelers is expected to bolster the growth of the luxury travel market during the forecast period.
In terms of geographical regions, North America achieved a valuation of $152,531.4 million in 2022 and is projected to reach $354,846.3 million by 2029, with a CAGR of 8.8%. The United States plays a pivotal role in propelling the luxury travel market in the North American region, boasting the wealthiest population and the highest number of outbound trips. Meanwhile, Canada and Mexico have witnessed a surge in individuals opting for luxury travel experiences. Canada is known for its serene winter destinations, while Mexico attracts luxury travelers with its dazzling white Caribbean beaches and exclusive private resorts. High-end properties like the Four Seasons and St. Regis in Punta Mita, as well as luxury resorts in Los Cabos, have contributed to Mexico's appeal. The luxury travel sector is anticipated to experience robust growth throughout North America, driven by increasing income trends, the strength of the dollar, and the expanding middle-class segment. Thus, the aforementioned factors are poised to support the North American luxury travel market during the forecast period.
In the global luxury travel market, key players have implemented a range of strategic initiatives aimed at expanding market share, enhancing profitability, and maintaining competitiveness. Notable companies profiled in this report include Abercrombie & Kent USA, LLC, Cox & Kings Ltd, Travcoa, Micato Safaris, Ker & Downey, Tauck, Thomas Cook Group PLC, Scott Dunn Ltd., Kensington Tours, Butterfield & Robinson Inc., TUI Group, Zicasso, Inc., Black Tomato, Backroads, Lindblad Expeditions, and Exodus Travels.
Key Stakeholder Benefits:
- Comprehensive Market Insight: This report offers a quantitative analysis of market segments, current trends, estimates, and dynamics within the luxury travel market from 2023 to 2029. It serves to identify prevalent opportunities in the luxury travel sector.
- Strategic Understanding: The research provides insights into the key drivers, constraints, and opportunities shaping the luxury travel market.
- Market Competitiveness: Utilizing Porter's five forces analysis, the report assesses the influence of buyers and suppliers, aiding stakeholders in making profit-oriented business decisions and fortifying their supplier-buyer networks.
- Segmentation Clarity: In-depth analysis of luxury travel market segments facilitates the identification of existing market opportunities.
- Regional Insights: The report offers a mapping of major countries in each region based on their revenue contributions to the global market.
- Player Positioning: Market player positioning aids in benchmarking and provides a clear perspective on the current status of market participants.
- Holistic Market Understanding: The report encompasses an examination of both regional and global luxury travel market trends, key players, market segments, application areas, and market growth strategies.
Luxury Travel Market Report Highlights
Market Size By 2029
USD 1650.5 billion
CAGR of 9.9%
2023 - 2029
By Types of Tour
By Age Group
By Types of Traveler
Key Market Players
Butterfield & Robinson Inc., Travelopia Holdings Limited, Micato Safaris, Thomas Cook India Ltd., Zicasso, Inc., Abercrombie & Kent USA, LLC, Kensington Tours, TUI Group, Tauck, Inc., Scott Dunn Ltd.
FREQUENTLY ASKED QUESTIONS?
Q1. What will be the luxury travel market size from 2023 to 2029?
- The global luxury travel market was valued at $648.2 billion in 2023, and is projected to reach $1655.5 billion by 2029, growing at a CAGR of 9.9% from 2023 to 2029.
Q2. What is the CAGR of luxury travel market?
- 9.9% is the CAGR of luxury travel market.
Q3. Which is the base year calculated in the luxury travel market report?
- 2022 is the base year calculated in the luxury travel market report.
Q4. Which are the top companies in the luxury travel market?
- Abercrombie & Kent USA, LLC, Cox & Kings Ltd, Travcoa, Micato Safaris, Ker & Downey, Tauck and Thomas Cook Group PLC are some of the top companies in the luxury travel market report.
Q5. What are the segments of luxury travel market?
- The luxury travel market is segmented into types of tour, age group, types of travellers and region.
Q6. What are the key trends in the luxury travel market report?
- The inclination of people toward unique and exotic holiday experiences, increase in the middle- & upper-class disposable income & related expenditure, and growth in need and interest of people to spend more time with family are the latest trends in the luxury travel market.
Q7. Which region holds the maximum market share of the luxury travel market?
- Europe region holds the maximum market share of the luxury travel market.
Q8. How will the COVID-19 pandemic impact the luxury travel market in 2020?
A. Outbreak of COVID-19 was negatively impacted the growth of the luxury travel market in 2020.
1 Market Overview
1.2 Market Analysis by Type
1.2.1 Overview: Global Revenue by Type: 2022 Versus 2023 Versus 2029
1.3 Market Analysis by Application
1.3.1 Overview: Global Revenue by Application: 2022 Versus 2023 Versus 2029
1.4 Global Market Size & Forecast
1.4.1 Global Sales in Value (2017-2029))
1.4.2 Global Sales in Volume (2017-2029)
1.4.3 Global Price by Type (2017-2029) & (US$/Unit)
1.5 Global Production Capacity Analysis
1.5.1 Global Total Production Capacity (2017-2029)
1.5.2 Global Production Capacity by Geographic Region
1.6 Market Drivers, Restraints and Trends
1.6.1 Market Drivers
1.6.2 Market Restraints
1.6.3 Trends Analysis
2 Manufacturers Profiles
**This is for each company**
2.1.1 Company Details
2.1.2 Company Major Business
2.1.3 Company Product and Services
2.1.4 Company Sales, Price, Revenue, Gross Margin and Market Share (2019-2022)
3 Sales by Manufacturer
3.1 Global Sales in Volume by Manufacturer (2020-2022)
3.2 Global Revenue by Manufacturer (2020-2022)
3.3 Key Manufacturer Position in Market
3.4 Market Concentration Rate
3.4.1 Top 3 Manufacturer Market Share
3.4.2 Top 6 Manufacturer Market Share
3.5 Global Production Capacity by Company
3.6 Manufacturer by Geography: Head Office and Production Site
3.7 New Entrant and Capacity Expansion Plans
3.8 Mergers & Acquisitions
4 Market Analysis by Region
4.1 Global Market Size by Region
4.1.1 Global Sales in Volume by Region (2017-2029)
4.1.2 Global Revenue by Region (2017-2029)
4.2 North America Revenue (2017-2029)
4.3 Europe Revenue (2017-2029)
4.4 Asia-Pacific Revenue (2017-2029)
4.5 South America Revenue (2017-2029)
4.6 Middle East and Africa Revenue (2017-2029)
5 Market Segment by Type
5.1 Global Sales in Volume by Type (2017-2029)
5.2 Global Revenue by Type (2017-2029)
5.3 Global Price by Type (2017-2029)
6 Market Segment by Application
6.1 Global Sales in Volume by Application (2017-2029)
6.2 Global Revenue by Application (2017-2029)
6.3 Global Price by Application (2017-2029)
7 North America by Country, by Type, and by Application
7.1 North America Sales by Type (2017-2029)
7.2 North America Sales by Application (2017-2029)
7.3 North America Market Size by Country
7.3.1 North America Sales in Volume by Country (2017-2029)
7.3.2 North America Revenue by Country (2017-2029)
7.3.3 United States Market Size and Forecast (2017-2029)
7.3.4 Canada Market Size and Forecast (2017-2029)
7.3.5 Mexico Market Size and Forecast (2017-2029)
8 Europe by Country, by Type, and by Application
8.1 Europe Sales by Type (2017-2029)
8.2 Europe Sales by Application (2017-2029)
8.3 Europe Market Size by Country
8.3.1 Europe Sales in Volume by Country (2017-2029)
8.3.2 Europe Revenue by Country (2017-2029)
8.3.3 Germany Market Size and Forecast (2017-2029)
8.3.4 France Market Size and Forecast (2017-2029)
8.3.5 United Kingdom Market Size and Forecast (2017-2029)
8.3.6 Russia Market Size and Forecast (2017-2029)
8.3.7 Italy Market Size and Forecast (2017-2029)
9 Asia-Pacific by Country, by Type, and by Application
9.1 Asia-Pacific Sales by Type (2017-2029)
9.2 Asia-Pacific Sales by Application (2017-2029)
9.3 Asia-Pacific Market Size by Region
9.3.1 Asia-Pacific Sales in Volume by Region (2017-2029)
9.3.2 Asia-Pacific Revenue by Region (2017-2029)
9.3.3 China Market Size and Forecast (2017-2029)
9.3.4 Japan Market Size and Forecast (2017-2029)
9.3.5 Korea Market Size and Forecast (2017-2029)
9.3.6 India Market Size and Forecast (2017-2029)
9.3.7 Southeast Asia Market Size and Forecast (2017-2029)
9.3.8 Australia Market Size and Forecast (2017-2029)
10 South America by Country, by Type, and by Application
10.1 South America Sales by Type (2017-2029)
10.2 South America Sales by Application (2017-2029)
10.3 South America Market Size by Country
10.3.1 South America Sales in Volume by Country (2017-2029)
10.3.2 South America Revenue by Country (2017-2029)
10.3.3 Brazil Market Size and Forecast (2017-2029)
10.3.4 Argentina Market Size and Forecast (2017-2029)
11 Middle East & Africa by Country, by Type, and by Application
11.1 Middle East & Africa Sales by Type (2017-2029)
11.2 Middle East & Africa Sales by Application (2017-2029)
11.3 Middle East & Africa Market Size by Country
11.3.1 Middle East & Africa Sales in Volume by Country (2017-2029)
11.3.2 Middle East & Africa Revenue by Country (2017-2029)
11.3.3 Turkey Market Size and Forecast (2017-2029)
11.3.4 Egypt Market Size and Forecast (2017-2029)
11.3.5 Saudi Arabia Market Size and Forecast (2017-2029)
11.3.6 South Africa Market Size and Forecast (2017-2029)
12 Sales Channel, Distributors, Traders and Dealers
12.1 Sales Channel
12.1.1 Direct Marketing
12.1.2 Indirect Marketing
12.2 Typical Distributors
12.3 Typical Customers
13 Research Findings and Conclusion
14.2 Research Process and Data Source
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analysing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.