0

Luxury Travel Market Expected to Reach $1650.5 Billion by 2031—Allied Market Research

 
2022
Luxury Travel Market

Report Code : A01337

quote A rise in demand for unique and exotic holiday experiences, an increase in middle-class and upper-class spending, and a rise in people's desire to spend more time with family are a few factors contributing to the growth of the luxury travel market. To get valuable experiences, many choose for unique international holidays, sailing, and adventure travel. Additionally, business travel has evolved, and many people now take lavish vacations for work. quote

Roshan Deshmukh - Manager
Consumer Goods at Allied Market Research

Get 20% Free Customization In This Report
Follow us on Social Media:       
 

According to a new report published by Allied Market Research, titled, “Luxury Travel Market," The luxury travel market was valued at $638.2 billion in 2021, and is estimated to reach $1650.5 billion by 2031, growing at a CAGR of 8.9% from 2022 to 2031.

The global luxury travel market size is growing rapidly since last few years owing to the increase in interest of people in unique and exotic holiday destinations. Luxury travel is a niche market; however, it is gradually gaining market share in the overall travel industry, owing to growth in disposable income and rise in living standards of people. The increase in the number of high-net-worth individual HNIs in emerging markets further propels the luxury travel market growth.

The growth of the luxury travel market demand is attributable to the large number of luxury travel companies switching to new age technologies. This is to boost the luxury travel status and delivering guests with state of the art facilities. Oculus rift-virtual reality device, Amazon eco-artificial intelligence, Go pro-wearable technology, and DaVinci 3D printing are some of the advanced technologies launched for the customers to enhance their travel experience.

Growth in the number of HNIs population and rise in aspirations of young and rich millennial are expected to majorly foster the market growth in the region. Baby boomer and generation X are the major contributors in the Asia-Pacific luxury travel market. Surge in interest of people to explore new places and to have unique travel experiences have encouraged market players to offer trips that connect the travelers to the local culture of the destination and explore the unknown acquaintance of the place and its people. However, changing socio-economic conditions threatens the growth of the market. Market players are coming up with new customized trips and travel plans, which cater to the need of the travelers. Major companies such as Abercrombie & Kent Ltd., and Cox & Kings Ltd., have a strong team of experts, who have knowledge about the tourist places and assist the travelers in opting for the best trip.

According to the luxury travel market analysis, the luxury travel market is segmented into types of tour, age group, types of travelers, and region. As per types of tour, the market is categorized into customized and private vacations, adventure and safari, cruise/ship expedition, small group journey, celebration and special events and culinary travel and shopping. By age group, it is segregated into millennial, generation x, baby boomer and silver hair. Depending on types of travelers, it is segmented into absolute luxury, aspiring luxury and accessible luxury. By region, the global luxury travel market is analyzed across North America (U.S., Canada, and Mexico), Europe (Germany, France, Spain, Italy, and Rest of Europe), Asia-Pacific (China, Singapore, India, and Rest of Asia-Pacific), and LAMEA (Middle East, Latin America, and Africa).

According to luxury travel market trends, by tour type, celebration and special events segment holds around 6.5% share of the global luxury travel market. The segment is expected to grow at considerable CAGR of 9.5%, during the forecast period, owing to the increased interest of people to explore new and exciting event experiences. This type of luxury travel is getting increasingly popular to celebrate a milestone or an event in one’s life, like family reunions, birthdays, anniversaries, and weddings or a mass public event like New Years. Travel companies arrange private tours in destinations around the global to celebrate important events. The destination celebration traveling has become trendsetter in the travel market with more people willing to celebrate past events, celebrate occasions, and share experiences.

On the basis of age group, the generation X segment was valued at $213,283.1 million in 2021, and is expected to reach $550,334.4 million by 2031, with a CAGR of 8.9%. Luxury travelers lying in the age group of 35-50 years. Family life shapes the travel preferences of Generation X in taking the leisure trips. Generation X has been identified to have more disposable income to spend on a vacation. Per trip they spend around $627 a day, which is 20% higher than the millennial’s. Generation X can be divided into two groups: recently single or heading toward a major wedding anniversary. Single Gen-X are not just into meeting someone or looking to party, but rather are more interested in adventure. Their preferred outbound locations are Chile, Mexico Canada, Argentina, Australia, and New Zealand. Generation X are generally married with children and so their destinations are chosen accordingly; next they also care for their needs and go places they have never been to; and, last but most importantly their desire for a safe place to visit. Thus, above factors are likely to bolster the growth of the luxury travel market through generation X segment during forecast period.

Depending on types of travelers, the accessible Luxury segment is expected to reach $207,270.9 million by 2031, with a CAGR of 8.9%. Accessible luxury travel involves making exceptional travel experience available to a wider range of consumers. Trend shows even this segment is rapidly moving on to luxury traveling owing to the widespread peer pressure and excessive technological advancement, which has enhanced their knowledge on luxury services and costs accordingly. Accessible luxury travelers opt for short holidays. They travel to destinations in close proximity to their native country, owing to monetary constraints. Accessible luxury traveler seeks less central and more off beaten places. Staying outside the city center can get into interesting neighborhoods so that one can get a real feel of the city.

Region-wise, Asia-Pacific is the fastest growing luxury travel market, growing at a CAGR of 11.1% during the forecast period. LAMEA is expected to be the second fastest growing market, owing to the developing economies in the region. Emerging countries of Asia-Pacific and LAMEA are expected to boost the market growth during the forecast period. Asia-Pacific is the major revenue contributor in the luxury travel market.

The players operating in the luxury travel industry have adopted product launch and business expansion as their key developmental strategies to expand their market share, increase profitability, and remain competitive in the market and gain luxury travel market opportunities. The key players 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 findings of the study

  • The luxury travel market was valued at $638,206.8 million in 2021, and is estimated to reach $1,650,447.7 million by 2031, growing at a CAGR of 8.9% during the forecast period. 
  • By types of tour, the cruise/ship expedition segment is estimated to witness the fastest growth, registering a CAGR of 10.9% during the forecast period.
  • In 2021, depending on age group, the silver hair segment was valued at $89,112.8 million, accounting for 14.0% of the global luxury travel market share. 
  • In 2021, depending on types of travelers, the aspiring Luxury segment was valued at $202,139.7 million and is expected to grow at a CAGR of 8.7%. 
  • In 2021, the Italy was the most prominent market in Europe, and is projected to reach $176,439.5 million by 2031 growing at a CAGR of 8.2% during the forecast period.
 

Need More Information

pr-det-talk Talk to David (Europe)

pr-det-talk Talk to Sona Padman (Americas)

5933 NE Win Sivers Drive #205,
Portland, OR 97220 United States

pr-det-phone Toll Free: +1-800-792-5285

pr-det-phone UK: +44-845-528-1300

pr-det-phone Hong Kong: +852-301-84916

pr-det-phone India (Pune): +91 2066346060

pr-det-phone Fax: +1(855) 550-5975

pr-det-phone help@alliedmarketresearch.com

 

For Media Inquiries, Please Contact

Allied Market Research
Contact Toll Free: +1-800-792-5285
Drop us an email at
media@alliedmarketresearch.com

Looking for Customization?

 Customization Request

Have a Question?

 Speak with Analyst

Any Confusion?

 Inquire Before Buying

Have a glance of the Report

  Request Free Sample
 
 

First time buyer?
Check offers and discount on this report
To get this report

Click Here
 
 

quote Luxury Travel Market by Types of Tour (Customized and private vacations, Adventure and safari, Cruise/ship expedition, Small group journey, Celebration and special events, Culinary travel and shopping), by Age Group (Millennial, Generation X, Baby Boomer, Silver hair), by Types of Traveler (Absolute luxury, Aspiring Luxury, Accessible Luxury): Global Opportunity Analysis and Industry Forecast, 2021-2031 quote

View Report
 
 

Avenue: Entire Library membership of Allied Market Research Reports at your disposal

  • Avenue is an innovative subscription-based online report database.
  • Avail an online access to the entire library of syndicated reports on more than 2,000 niche industries and company profiles on more than 12,000 firms across 11 domains.
  • A cost-effective model tailored for entrepreneurs, investors, and students & researchers at universities.
  • Request customizations, suggest new reports, and avail analyst support as per your requirements.
  • Get an access to the library of reports at any time from any device and anywhere.

 
 

WHY ALLIED MARKET RESEARCH?

INFLALLIBLE METHODOLOGY

To ensure high-level data integrity, accurate analysis, and impeccable forecasts

ANALYST SUPPORT

For complete satisfaction

CUSTOMIZATION

On-demand customization of scope of the report to exactly meet your needs

TARGETED MARKET VIEW

Targeted market view to provide pertinent information and save time of readers

 

Featured Readings

 

Buy Full Version
"Luxury Travel Market"
Purchase Enquiry

Get fresh content delivered

Get insights on topics that are crucial for your business. Stay abreast of your interest areas.

Get Industry Data Alerts

Why Allied Market Research?

Infallible Methodology

To ensure high-level data integrity, accurate analysis, and impeccable forecasts

Analyst Support

For complete satisfaction

Customization

On-demand customization of the scope of the report to exactly meet your needs

TARGETED MARKET VIEW

Targeted market view to provide pertinent information and save the time of readers