GVR Report cover Luxury Travel Market Size, Share & Trends Report

Luxury Travel Market Size, Share & Trends Analysis Report By Tour (Customized & Private Vacations, Safari & Adventure), By Age Group (Millennial, Baby Boomers), By Region, And Segment Forecasts, 2024 - 2030

  • Report ID: GVR-2-68038-974-6
  • Number of Pages: 85
  • Format: Electronic (PDF)

Luxury Travel Market Size & Trends

The global luxury travel market size was estimated at USD 1.37 trillion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 6.7% from 2024 to 2030. Increasing spending by elite travelers to visit unexplored destinations and gain new experiences is driving the market. In addition, the growing trend of micro trips and the rapidly expanding tourism sector across the globe have been boosting market growth. Personalized services, reliable transport, exclusivity, and positive & professional interaction with staff are what set the benchmark for luxury travel. Traveling around the world is being greatly influenced by factors, such as growing political stability, improving attitudes toward ethnicity, sexual orientation, and race, and more accommodating visa regulations.

U.S. Luxury Travel market size and growth rate, 2024 - 2030

Travelers are looking to create their own unique experiences through flexible itineraries that combine entertainment as well as relaxation. Luxury travelers often prefer customized and private tours to general tour packages for unique and highly personal experiences. The post-pandemic trends of private tours due to concerns for health and safety are driving the market. Customized and private tours let people travel at their own pace. According to a Tripadvisor survey, the fastest-growing tours are family-friendly ones. Bookings for these tours increased by over 200% in 2021, and 291% for U.S. travelers. The growing population of high net-worth individuals (HNWIs) across the globe also supports market growth as this group will be one of the most crucial travel groups that will help bring the industry on track.

According to the World Wealth Report 2022, the total HNWI population was pegged at expanded by 7.8%, and wealth swelled by 8% in 2021. Travelers have the opportunity to select from a varied selection of comprehensive journeys that blend exclusive access, unique experiences, and luxurious accommodations in coveted global destinations. Furthermore, in March 2021, Travelive, a luxury travel company with offices in the U.S. and Europe, announced the official addition of Croatia to its portfolio of destinations. Travelive will now provide full-service for foreign independent travel (FIT) itineraries, shorex, pre- & post-cruise options, specialized guide services, private transfers, and 24-hour client support across Croatia. Such initiatives are expected to propel market growth.

Tour Insights

The safari and adventure segment accounted for the largest share of around 34.2% in 2023 as luxury travelers are seeking more depth to understand the local culture, sense of adventure, nature, historical infrastructure, and less crowded environment. Luxury tents, commonly known as "Glamping" accommodations, are primarily employed for group experiences during safaris or outdoor-focused tours. These tents typically come equipped with modern amenities, including private bathrooms and showers, and frequently feature elegant teak floorings. Luxury safari tours generally also have an on-site personal guide available for the duration of each tour.

Global Luxury Travel market share and size, 2023

For instance, MILIMA, one of the most popular deluxe lodges in South Africa, provides various options, such as luxury tents, manor houses, and villas with various benefits, which sets a standard bar for its competitors as well as new entrants in the industry. Culinary travel and shopping is expected to be the fastest-growing segment with a CAGR of 7.6% from 2024 to 2030. The primary purpose of culinary travel is to experience the unique foods and beverages of a particular region or area and understand the culture.

The growing popularity of cooking programs on television and online platforms influences people to travel abroad and experience local cuisines. According to the Godrej Food Trends Report 2022, in the coming years, around 90% of people in India are predicted to be interested in travel related to culinary experiences and cuisines. This trend is driven by the growing curiosity among people to taste new flavors suggested by food bloggers, health professionals, chefs on TV shows, and many other trends that emerged during the COVID-19 pandemic.

Regional Insights

Europe emerged as the largest regional market with a share of over 35.4% in 2023. Rising travel connectivity, coupled with rapid penetration of high-speed internet, has made even the most remote places in Europe more accessible to the luxury traveler. Safari and adventure travel are emerging trends in Europe. Europe has become a key destination for those passionate about birdwatching. According to a report published by the CBI Ministry of Foreign Affairs in January 2021, the birdwatching tourism sector has experienced rapid growth, primarily driven by European tourists. A significant portion, around 20%, of European travelers engaged in wildlife tourism also express interest in birdwatching activities.

Luxury Travel Market Trends, by Region, 2024 - 2030

Birdwatching has emerged as a popular hobby among Europeans. Asia Pacific is expected to witness the fastest CAGR of 7.3% from 2024 to 2030. The contribution of travel & tourism-one of the most important revenue-generating sectors in Asia Pacific—to the region’s GDP grew by 7.5% from 2021 to 2022, according to the World Travel & Tourism Council. Increased economic growth, rising disposable income and free time, growing political stability, and a rising focus on active tourism promotions are among the key factors contributing to the rapid expansion of tourism in Asia Pacific.

Age-group Insights

The baby boomers segment dominated the global market with a share of 38.7% in 2023. Baby boomers have the time, budget, and desire to travel and visit multiple adventurous destinations, which is expected to accelerate market growth. According to AARP 2021 Travel Trends’, in the U.S., approximately 54% of baby boomers planned to travel in 2021, on which they planned to spend an average of USD 6,691, which is about 20% to 50% more than their Gen X or millennial counterparts.

The millennial segment is estimated to grow at the fastest CAGR of 7.2% from 2024 to 2030. Millennials have a mindset for luxury and its meaningful consumption. They tend to be more independent in their religious and political views, more entrepreneurial, less likely to be married, better educated, and more travel-oriented than any other generation. This may fuel market growth over the forecast period.

Key Companies & Market Share Insights

The industry is characterized by the presence of global companies and emerging players. Key players emphasize product innovation & differentiation and unique designs aligned with the changing consumer trends. These players have extensive distribution networks worldwide, which enable them to reach a wide customer base and expand into emerging markets. The emerging companies, on the other hand, are focused on niche markets, specialized product portfolios, and fresh designs to improve their visibility in the market.

The operations of TUI Group, one of the largest players with a complete portfolio in the safari market, are divided into several categories, including markets and airlines, holiday experiences, and other business sectors. The company has 1,600 travel agencies, 6 airlines with around 150 aircraft, 18 cruise liners, and 380 hotels & resorts. Its integrated offerings provide 27 million customers with an unmatched holiday experience in 180 countries. 

Key Luxury Travel Companies:

  • 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.

Recent Developments

  • In June 2023, Lindblad Expeditions collaborated with FOOD & WINE magazine to launch an eight-day journey through the Pacific Northwest along the Columbia and Snake Rivers. During this expedition, guests explored the region's historical, agricultural, and natural aspects and savored the local cuisine and wines

  • In February 2023, Australia-based Flight Centre Travel Group signed an agreement to purchase Scott Dunn Ltd. for approximately USD 149 million. Flight Centre Travel Group is the proprietor of leisure and corporate travel enterprises in over 20 countries. This acquisition serves as the company's strategic entry into the luxury market in both the UK and the U.S., expediting its initiative to establish a collection of luxury travel brands

  • In September 2022, Cox & Kings Ltd. unveiled its 2023-24 Worldwide Brochure, which included six new tours. Additional tours to France, Turkey, India, Pakistan, and Jerusalem were introduced in the brochure. The 208-page brochure covers departures till the end of 2024 and all the trips are capped at 14 guests per group

Luxury Travel Market Report Scope

Report Attribute

Details

Market size value in 2024

USD 1.47 trillion

Revenue forecast in 2030

USD 2.32 trillion

Growth rate

CAGR of 6.7% from 2024 to 2030

Base year for estimation

2023

Historical data

2018 - 2022

Forecast period

2024 - 2030

Report updated

December 2023

Quantitative units

Revenue in USD billion/trillion, and CAGR from 2024 to 2030

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Tour, age-group, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

U.S.; Canada; Mexico; UK; Germany; France; Italy; China; India; Uzbekistan; Brazil; South Africa; UAE; Saudi Arabia

Key companies profiled

TUI Group; Butterfield & Robinson Inc.; Cox & Kings Ltd.; Scott Dunn Ltd.; Abercrombie & Kent USA, LLC; Lindblad Expeditions; Geographic Expeditions, Inc.; Micato Safaris; Exodus Travels Ltd.; and Travel Edge (Canada) Inc.

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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Avail customized purchase options to meet your exact research needs. Explore purchase options

Global Luxury Travel Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global luxury travel market report based on tour, age-group, and region:

Global Luxury Travel Market Report Segmentation

  • Tour Outlook (Revenue, USD Billion, 2018 - 2030)

    • Customized & Private Vacations

    • Safari & Adventure

    • Cruises, Yachting & Small Ship Expeditions

    • Celebration Journeys

    • Culinary Travel & Shopping

    • Others

  • Age-group Outlook (Revenue, USD Billion, 2018 - 2030)

    • Millennial

    • Generation X

    • Baby Boomers

    • Silver Hair

  • Regional Outlook (Revenue, USD Billion, 2018 - 2030)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • UK

      • Germany

      • France

      • Italy

    • Asia Pacific

      • China

      • India

      • Uzbekistan

    • Central & South America

      • Brazil

    • Middle East & Africa (MEA)

      • South Africa

      • Saudi Arabia

      • UAE

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