According to a new report published by Allied Market Research titled, “Luxury travel market by Type of Tour, Age Group, and Types of Traveler: Opportunity Analysis and Industry Forecast, 2021–2027,”
The global luxury travel market 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 growth of the luxury travel trends. The global luxury travel market is projected to reach $ 1,198,380.7 million by 2027, growing at a CAGR of 11.1%, from 2021 to 2027.
The growth of the luxury travel industry 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.
The luxury travel market is segmented on the basis of types of tour, age group, type of traveler and region. In 2019, adventure and safari segment holds around 44% of the global luxury travel market share. The segment is expected to continue its leading market position, during the forecast period, owing to the increased interest of people to explore new and exciting experiences while traveling. On the basis of age group, the market is classified into millennial, generation x, baby boomer, and silver hair. The silver hair segment is estimated to be the fastest growing market in the overall luxury travel market forecast. On the basis of type of traveler, the market is divided into absolute luxury, aspiring luxury, and accessible luxury.
Absolute luxury is the largest and the fastest growing segment in the luxury travel market. It is estimated to reach the market size of $ 668,530.0 million by 2027, registering a CAGR of 11.3% from 2021 to 2027.
Region-wise, Asia-Pacific is the fastest growing market, growing at a CAGR of 14.2% 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 market.
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 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.
Key Findings Of The Study
- The adventure and safari tours segment is expected to grow at a CAGR of 10.7% during the forecast period.
- The generation X segment is estimated to grow at a CAGR of 11.5% during the forecast period.
- Baby boomer is anticipated to dominate the luxury travel market growth, registering a CAGR of 10.7%
- Absolute luxury travel segment is projected to contribute with highest market share during the forecast time period, with around 55% market share in 2027, and CAGR of 11.3%
- The culinary travel and shopping segment is anticipated to dominate the global action camera market growth with a CAGR of 12.8% during the forecast period.
The global market is fragmented with the presence of several market participants across various regions. The strong presence private label brands is giving tough competition to global players. Abercrombie & Kent USA, LLC, Cox & Kings Ltd, Travcoa, Micato Safaris, Ker & Downey, Tauck, Thomas Cook Group PLC, Scott Dunn Ltd, Kensington Tours, and Butterfield & Robinson Inc.