Luxury Travel Market Size, Share & Trends Analysis Report By Tour (Safari & Adventure, Customized & Private Vacations), By Age Group (Millennial, Baby Boomers), By Region (APAC, Europe), And Segment Forecasts, 2022 - 2030

Report Overview

The global luxury travel market size was valued at USD 1.20 trillion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 7.6% from 2022 to 2030. Increasing spending by elite travelers to visit unexplored destinations and gain new experiences is driving the industry. In addition, the growing trend of micro trips and the rapidly expanding tourism sector across the globe have been boosting industry growth. The COVID-19 pandemic impacted the growth of this market. Luxury travel is a vital component in the distribution of wealth across the globe since local economies are dependent on luxury travelers spending on art, culture, restaurants, guides, and sporting events.

However, due to the COVID-19 pandemic, the industry is witnessing a downfall owing to the closing of borders, declining consumer disposable income, and strict lockdown situations across countries. According to the World Tourism Organization’s most recent data, the devastating effects of COVID-19 on the industry caused international visitor arrivals to drop by 93% in June 2020 compared to the same month in 2019. Personalized services, reliable transport, exclusivity, and positive & professional interaction with staff are what sets the benchmark for luxury travel. Traveling around the world is greatly influenced by favorable factors, such as growing political stability, improving attitudes toward gender, ethnicity, sexual orientation, and race, and more accommodating visa regulations.

Travelers are looking to create their own unique experiences through flexible itineraries that combine entertainment as well as relaxation.The increasing popularity of cruises, yachts and small ships is attracting a large number of tourists, particularly elite travelers. High Net-worth Individuals (HNWIs) are considered to be one of the most prestigious customers in this segment. Thus, companies in the industry have been paying greater attention to water-based luxury travel, such as cruises. For instance, in November 2019, Abercrombie & Kent USA, LLC announced the introduction of special edition cruise features.The growing population of HNWIs across the globe, whichis one of the most crucial travel groups that will help bring the industry on track, is expected to propel industry growth over the forecast period.

According to the World Wealth Report 2022, the total HNWI population expanded by 7.8%, and wealth swelled by 8% in 2021. Furthermore, the trend of online research has increased exponentially over the years, which is expected to fuel industry growth over the forecast period. High-tech rooms (smart rooms) are predicted to drive the demand for luxury rooms and travel over the forecast period, thereby giving travelers complete autonomy over the usage and engagement of the accommodation and traveling mode. Increasing use of the internet and the presence of social media are acting as a catalyst for the growth of the industry. Moreover, travel experiences and memories told over social media platforms like Instagram, Facebook, and blogging sites have increased exponentially.

Age Group Insights

On the basis of age groups, the global industry has been further categorized into millennials, generation X, baby boomers, and silver hair. In terms of revenue, the baby boomers age group segment dominated the global industry in 2021 and accounted forthe largest share of more than 42.65%. Baby boomers have the time, budget, and desire to travel and visit multiple adventurous destinations, and a wide bucket list ranging from taking a world cruise, long vacation on a luxury cruise liner, and exotic ports to enjoying an upscale safari destination.

These factors are accelerating segment growth. According to AARP 2021 Travel Trends’, in the U.S., approximately 54% of baby boomers planned to travel, on which they spent, on an average, USD 6,691, which is about 20% to 50% more than their Gen X or millennial counterparts. The millennial age group segment is estimated to register the fastest CAGR over the forecast period. Millennials have a mindset for luxury and its meaningful consumption. They tend to be more travel-oriented than any other generation. This may fuel the industry's growth over the forecast period.

Tour Insights

On the basis of tours, the global industry has been further categorized into customized & private vacations, safari & adventure, cruises, yachting and small ship expeditions, celebration journeys, culinary travel & shopping, and others. In terms of revenue, the safari and adventure tour segment dominated the global industry in 2021 and accounted for the largest share of more than 34.95% as luxury travelers are seeking more depth to understand the local culture, sense of adventure, nature, historical infrastructure, and less crowded environment. Personalized vacation travel aimed at safari and adventure is getting popular among all age groups, which is boosting segment growth.

Culinary travel and shopping is expected to be the fastest-growing segment over the forecast period. The primary purpose of culinary travel is to experience the unique food and drink of a particular region or area and understand the culture. Travelers are participating in cooking classes, retracing historical culinary routes, exploring wine, beer, and spirits trails, attending food fairs and festivals, and touring food plants and processing centers for exploration purposes. The growing popularity of cooking programs on television and online is influencing consumers to travel abroad and experience local cuisines.

Regional Insights

On the basis of geographies, the global industry has been further categorized into North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa. Europe emerged as the largest regional market in 2021 and accounted for the maximum share of more than 35.00% of the overall revenue. Rising travel connectivity, coupled with rapid penetration of high-speed internet, has made even the most remote places in Europe more accessible to luxury travelers. This is driving consumers to explore new, exotic locations across the region, thereby boosting regional industry growth.

On the other hand, the Asia Pacific region is expected to register the fastest growth rate during the forecast period. The growth of this regional market can be attributed to the factors, such as higher spending on food tourism and adventure tourism by Asian millionaires. In addition, travel has been the most popular activity to spend on among the affluent in China, with an increasing number of tourists traveling further away from the mainland and Hong Kong in a more luxurious manner.

Key Companies & Market Share Insights

The industry is characterized by the presence of a few established players and new entrants. Many big companies are increasing their focus on the growing trends in the industry. Companies diversify their service offerings to maintain industry share.For instance,

• In November 2021, White Desert, a luxury travel provider company launched Echo, which offers access to the Antarctica continent for rarely seen interior views and luxurious experiences

• In November 2019, Abercrombie & Kent USA, LLC announced a special edition cruise that features astronomy experts, including the first woman to walk in space. The company’s Antarctica & the Total Solar Eclipse Cruise is designed to offer an exclusive experience of rare astronomical spectacles, alongside experts

Some of the key players operating in the global luxury travel market include:

• 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.

• Travel Edge (Canada) Inc.

Luxury Travel Market Report Scope

Global Luxury Travel Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global luxury travel market report on the basis of tour, age group, and region:

• Tour Outlook (Revenue, USD Billion, 2017 - 2030)

  • Customized & Private Vacations

  • Safari & Adventure

  • Cruises, Yachting & Small Ship Expeditions

  • Celebration Journeys

  • Culinary Travel & Shopping

  • Others

• Age Group Outlook (Revenue, USD Billion, 2017 - 2030)

  • Millennial

  • Generation X

  • Baby Boomers

  • Silver Hair

• Regional Outlook (Revenue, USD Billion, 2017 - 2030)

  • North America

    • U.S.

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa (MEA)

    • South Africa