Global Luxury Travel Market was valued at US$ 241.4 Billion in 2022 and is projected to reach US$ 440.4 Billion by 2030, exhibiting a CAGR of 7.8% during the forecast period. According to global luxury travel market report, By Category (Adventure & Safari, Cruise, Rail Journey, Culinary Travelling & Shopping, Customized & Private Vacations, and Celebration), By Age Group (Millennials, Generation X, Baby Boomers, and Silver Hair), By Type (Domestic and International), and By Region (North America, Latin America, Asia Pacific, Europe, and Middle East &Africa).
Increasing disposable income of middle class and upper class coupled with overall expenditure on travel is expected to boost the global luxury travel market growth. Furthermore, growing preference of people towards spending quality time with family is driving growth of the market. Rising preference of working class individuals towards luxury travel, owing to daily hectic routines is also expected to boost the market growth. The National Statistical Office said on 6 March 2023, the estimated annual per capita (net national income) at current prices for 2022-23 stands at US$ 2093.92. This marks a growth of around 99 per cent from US$ 1054. 84 in 2014-15
Global Luxury Travel Market- Impact of Coronavirus (Covid-19) Pandemic
According to National Council of Applied Economics Research, This relates to the overall economic slowdown during 2020-21 and assumes that tourism was rather resilient and continued as before. Hence, this scenario takes into account only the supplyside shock. Therefore, the TIRs (Total Indicator Runout) are assumed to remain the same for all the quarters of 2020-21 as those for pre-pandemic years. While the overall economy fell by 20.1 per cent in Q1, and by 5.1 per cent in Q2, and grew at a positive rate of 4.3 per cent in Q3, all in nominal terms, the tourism economy or TDGVA (Tourism direct gross value added) saw a much greater fall of 42.8 per cent in Q1, and 15.5 per cent in Q2, and continued to experience negative growth even in Q3, recording a fall of 1.1 per cent.
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Browse 35 market data tables* and 25 figures* on "Global Luxury Travel Market”- Global forecast to 2030.
Key Trends and Analysis of the Global Luxury Travel Market:
- Among age group, the baby boomers segment held a dominant position in the global luxury travel market in 2022, owing to higher income of the people of age group between 40-60 years. Moreover, this age group also has millennial kids, who have either moved out or are earning for themselves. This generation has lower medical issues than the silver hair age group. Therefore, the baby boomers segment is expected to witness significant growth during the forecast period, followed by the millennials segment. According to ministry of finance survey in 2022-2023, India to witness gdp growth of 6.0 per cent to 6.8 per cent in 2023-24, depending on the trajectory of economic and political developments globally, economic survey 2022-23 projects a baseline gdp growth of 6.5 per cent in real terms in fy24. Economy is expected to grow at 7 per cent (in real terms) for the year ending march 2023, this follows an 8.7 per cent growth in the previous financial year
- Among category, adventure & safari witnessed a significant market share in 2022, owing to increasing urban population, baby boomers coupled with high disposable income, and the trend for international luxury travel is expected to witness a rapid growth during the forecast period
Key Takeaways of the Market:
- Europe held dominant position in the market in 2022, accounting for a market share of 35%, and North America Held 25% owing to increasing number of first class flights in the region. In the U.S., 14 federal agencies spent US$ 8.7 million on 1,903 upgraded flights. Moreover, growing tourism industry also is a major factor in growth of the global luxury travel market in the region.
- For instance, according to new data published by United Nations World Tourism Organization UNWTO, more than 900 million tourists travelled internationally in 2022 that doubled the number recorded in 2021 though still 63% of pre-pandemic levels. Every global region recorded notable increase in number of international tourists. The Middle East witnessed strongest relative increase as arrivals climbed to 83% of pre-pandemic numbers. Europe reached nearly 80% of pre-pandemic levels as it welcomed 585 million arrivals in 2022. Africa and the Americas both recovered about 65% of their pre-pandemic visitors, while Asia Pacific reached only 23%, due to stronger pandemic-related restrictions. Major players operating in the global luxury travel market includeAbercrombie & Kent USA, Absolute Travel, Inspiring Travel Company, TCS World Travel, TÜ ELITE, Cox & Kings Ltd., Travcoa, Micato Safaris, Scott Dunn Ltd., Kensington Tours Ltd., and Butterfield & Robinson Inc.
- Abercrombie & Kent USA offers luxury travel services including small group journeys, cruises, private jet, and tailor-made vacations worldwide. Inspiring Travel Company offers services including luxury hotel stays, tailor-made tours, multi-center holidays, luxury villas, ranch holidays, luxury cruises, luxury river cruises, luxury ski holidays, private jet holidays, luxury spa holidays, and luxury sports holidays.
- Seven Seas Explorer and Regent Seven Seas Cruises are one of the most luxurious cruise lines worldwide. These cruise lines offer ‘6 star services’. This is also expected to boost the global luxury travel market growth.
