Tuesday, May 28, 2024

Luxury travel market growing at 8.9 percent says analysis

The luxury travel market is estimated to reach $1650.5 billion by 2031, growing at a CAGR of 8.9 percent from 2022 to 2031, according to an Allied Market Research report. The market was valued at $638.2 billion in 2021.

The global luxury travel market size is growing rapidly for the 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 report said.

 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 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 travellers, the report said.

According to the 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 customised 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 (US, 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 percent share of the global luxury travel market. The segment is expected to grow at considerable CAGR of 9.5 percent, 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 Year, it said.

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