Luxury Travel Market Share, Size, Trends, Industry Analysis Report, By Tour (Safari & Adventure, Culinary Travel & Shopping, Others), By Age Group (Millennial, Baby Boomers, Others), By Region, And Segment Forecasts, 2024 - 2032
- Published Date:Feb-2024
- Pages: 117
- Format: PDF
- Report ID: PM4257
- Base Year: 2023
- Historical Data: 2019-2022
The global luxury travel market was valued at USD 1.39 trillion in 2023 and is expected to grow at a CAGR of 6.6% during the forecast period.
The market is experiencing growth due to the rising expenditures of elite travelers exploring undiscovered destinations and seeking new experiences. Additionally, the market is being boosted by the increasing popularity of micro trips and the rapid expansion of the global tourism sector. Luxury travel is defined by personalized services, dependable transportation, exclusivity, and positive and professional interactions with staff. Several favorable factors, including enhanced political stability, improved attitudes toward gender, ethnicity, sexual orientation, and race, as well as more flexible visa regulations, are significantly influencing global travel experiences.
To Understand More About this Research: Request a Free Sample Report
In today's era of online self-service travel planning, upscale travelers are revisiting the idea of relying on professional assistance. These high-end travel agents function as comprehensive guides, curating seamless and distinctive travel experiences. A substantial 85% of surveyed luxury travelers consider them the optimal choice for arranging personalized luxury travel, with 74% believing travel advisers can genuinely create a luxurious travel experience. These advisers offer valuable practical insights, including in-depth knowledge of travel restrictions and health and safety guidelines. They also provide secure payment options and round-the-clock assistance for troubleshooting before, during, and after the trip.
As per a Tripadvisor survey, family-friendly tours saw a remarkable surge in popularity. Bookings for these tours skyrocketed by over 200% in 2021, with a staggering 291% increase among U.S. travelers. The global rise in high net-worth individuals (HNWIs) is set to significantly drive market growth in the foreseeable future, effectively steering the industry back on track. According to the 2022 World Wealth Report, the HNWI population expanded by 7.8%, accompanied by an 8% increase in wealth in 2021. Travelers now can choose from a diverse range of immersive journeys that offer exclusive access, unparalleled experiences, and luxurious accommodations in coveted destinations worldwide.
The research study provides a comprehensive analysis of the industry, assessing the market on the basis of various segments and sub-segments. It sheds light on the competitive landscape and introduces Luxury Travel Market key players from the perspective of market share, concentration ratio, etc. The study is a vital resource for understanding the growth drivers, opportunities, and challenges in the industry.
Growing Affluence and Disposable Income
Travelers are now seeking to craft distinctive experiences by designing flexible itineraries that blend entertainment and relaxation. A growing trend among travelers is opting for tours in their chosen destinations, driven by the desire to deepen their understanding of the places they visit. Luxury travelers favor personalized and private tours over standard tour packages, appreciating the unique and deeply personal experiences they offer.
The market is experiencing growth, propelled by post-pandemic concerns related to health and safety, which have led to an increased demand for private tours. These tailored experiences allow individuals to travel with their friends and family, enjoying the journey at their own pace.
The market is primarily segmented based on tour, age group, and region.
By Age Group
To Understand the Scope of this Report: Speak to Analyst
By Tour Analysis
Safari & adventure segment is expected to witness the highest growth during the forecast period
Safari & adventure segment dominated the market. These travelers are increasingly interested in immersing themselves in local culture, seeking adventure, connecting with nature, exploring historical sites, and enjoying serene, uncrowded environments. To cater to this demand, luxury tents, often referred to as "Glamping" accommodations, are widely used for group experiences during safaris and outdoor-focused tours. These tents offer modern amenities such as private bathrooms and showers, often featuring elegant teak flooring, providing a comfortable yet immersive experience in nature.
Luxury safari tours typically include a dedicated personal guide throughout the entire duration of the tour. For instance, MILIMA, one of South Africa's leading deluxe lodges, offers diverse options such as luxury tents, manor houses, and villas, each with unique benefits. This not only sets a benchmark for its competitors but also establishes a standard for new entrants in the market.
Culinary travel & shopping segment will grow at significant pace. Culinary travel involves exploring unique foods and beverages in specific regions, providing an opportunity to delve into the local culture. The increasing popularity of cooking shows has inspired individuals to travel abroad and savor authentic local cuisines. According to the Godrej Food Trends Report 2022, approximately 90% of Indians are expected to show interest in culinary travel experiences in the upcoming years. This surge in interest is fueled by people's curiosity to taste new flavors recommended by food bloggers, health experts, television chefs, and various trends that emerged during the COVID-19 pandemic.
By Age Group Analysis
Baby boomers segment accounted for the largest market share in 2023
Baby boomers segment accounted for the largest market share. The dominance of this demographic is attributed to their ample free time and financial resources, enabling them to explore multiple adventurous destinations. According to the AARP 2021 Travel Trends report, approximately 54% of baby boomers in the U.S. had travel plans for 2021. Remarkably, their planned average expenditure of USD 6,691 surpassed that of their Gen X and millennial counterparts by 20% to 50%. This substantial spending power further fuels the growth of this segment.
Millennial segment will exhibit robust growth rate. Millennials exhibit a penchant for luxury and purposeful consumption. They are characterized by their independent perspectives on religion and politics, their entrepreneurial spirit, higher educational achievements, and a strong inclination towards travel. These factors are expected to drive the growth of this segment in the coming years.
Europe region accounted for the largest share of global market in 2023
Enhanced travel connectivity and widespread availability of high-speed internet have significantly increased accessibility to even the remotest European destinations for luxury travelers. Notably, safari and adventure travel are gaining traction in the region, making the continent a hotspot for enthusiasts interested in birdwatching. The birdwatching tourism sector has witnessed rapid expansion, particularly fueled by European tourists, as highlighted in a report from the CBI Ministry of Foreign Affairs published, in January 2021.
Asia Pacific will grow at the substantial pace. The travel and tourism industry, a pivotal revenue-generating sector in the region, saw a 7.5% growth in its contribution to the region's GDP from 2021 to 2022, as reported by the World Travel & Tourism Council. This surge can be attributed to factors such as heightened economic growth, increased disposable income and leisure time, improved political stability, and a growing emphasis on active tourism promotions in the region.
Key Market Players & Competitive Insights
The market exhibits a mix of established companies and newcomers. Several prominent players are concentrating their efforts on industry trends that have gained widespread popularity.
Some of the major players operating in the global market include:
- TUI Group
- Butterfield & Robinson Inc.
- Cox & Kings Ltd.
- Scott Dunn Ltd.
- Abercrombie & Kent USA, LLC
- Lindblad Expeditions
- Geographic Expeditions, Inc.
- Micato Safaris
- Exodus Travels Limited
- Travel Edge (Canada) Inc.
- In June 2023, Lindblad Expeditions partnered with FOOD & WINE magazine to introduce an eight-day expedition exploring the Pacific Northwest along the Columbia and Snake Rivers. This journey allowed guests to immerse themselves in the region's rich history, agriculture, and natural wonders while indulging in local cuisine and wines.
- In February 2023, The Australia-based Flight Centre announced to acquire Scott Dunn for around USD 149 Mn. Flight Centre Travel Group operates leisure & corporate travel businesses in around 20 countries. This acquisition marks the company's strategic entry into the UK & U.S. markets, accelerating its efforts to establish a portfolio of luxury travel brands.
- In August 2022, The Indian government has unveiled plans for new waterways connecting Mathura, Vrindavan, & Agra, aimed at boosting religious tourism. This initiative involves affordable cruises on the Yamuna River, linking the sacred sites of Gokul, Vrindavan, & Mathura. These cities are renowned for their cultural heritage, hosting vibrant events like Raasleela and Janmashtami Mela.
Luxury Travel Market Report Scope
Market size value in 2024
USD 1.47 Trillion
Revenue forecast in 2032
USD 2.46 Trillion
6.6% from 2024 – 2032
2019 – 2022
2024 – 2032
Revenue in USD million/billion and CAGR from 2024 to 2032
By Tour, By Age Group, By Region
North America, Europe, Asia Pacific, Latin America, Middle East & Africa
Report customization as per your requirements with respect to countries, region and segmentation.
Get in Touch Whenever You Need Us
In today’s hyper-connected world, running a business around the clock is no longer an option. And at Polaris Market Research, we get that. Our sales & analyst team is available 24x5 to assist you. Get all your queries and questions answered about the Luxury Travel Market report with a phone call or email, as and when needed.
Browse Our Top Selling Reports
The Luxury Travel Market report covering key segments are tour, age group, and region
The global luxury travel market size is expected to reach USD 2.46 trillion by 2032
The global luxury travel market is expected to grow at a CAGR of 6.6% during the forecast period.
Europe regions is leading the global market
Growing Affluence and Disposable Income are the key driving factors in Luxury Travel Market