Middle East Luxury Travel Market Size, Share & Trends Analysis Report By Tour (Customized & Private Vacations, Safari & Adventure), By Age Group (21-30, 31-40, 41-60, 60+), By Country, And Segment Forecasts, 2024 - 2030

Middle East Luxury Travel Market Trends

The Middle East luxury travel market size was estimated at USD 53.02 billion in 2023 and is expected to grow at a CAGR of 5.5% from 2024 to 2030. Growing number of tourist and there has been an increasing popularity for trips that include a taste of culture, architecture, & cuisines, cruises and other new modes of travel, and exhilarating, adrenaline-driven activities, especially among younger travelers. The rising trend of access instead of acquisition and experience instead of possession has been significantly governing the luxury travel market. Furthermore, travelling is greatly influenced by factors, such as sexual orientation, improving attitudes toward ethnicity, rising political stability, race, and more accommodating visa regulations.

The Middle East luxury travel market accounted for 4% of the global luxury travel market revenue in 2023. The growing desire to escape the stress, hustle-bustle, and routine of everyday life has driven the attraction for travel. Increasing life expectancy of people around the world and improved health conditions even at an old age is encouraging more and more consumers to enjoy an active and adrenaline-driven lifestyle. Studies have shown that compared to previous generations, a rising number of retired employees in recent years have been expressing a greater desire to participate in physically challenging leisure activities. This trend has impacted the choice of activities offered by tour operators and hotels. Gentle exercise programs and relaxing beach vacations are being replaced by soft adventure tourist activities in the luxury travel market.

Safari and adventure tours enjoy the highest penetration in the market owing to an increasing number of luxury travelers seeking to understand local culture, gain a sense of adventure, and enjoy a less-crowded environment. Personalized safaris and adventures are gaining popularity among all age groups, which is driving the segment growth. Luxury travel has evolved from being limited to high-class accommodations and the travelers’ cultures, values, demographics, and attitudes have redefined the terms of luxury travel in recent years.

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 market segment. Thus, companies in the industry have been paying greater attention to water-based luxury travels such as cruises

High spending power and growing consumer preference for family vacations have propelled the demand for luxury travel in the region. The region includes locations of all sizes and stages of development in terms of infrastructure, connectivity, promotion, and brand strength. Oil-producing countries are diversifying their economies by including tourism in their development projects.Increasing focus of Dubai on offering stays in chic desert trailers, beach camps, and plush mountainside lodgings to make its own mark in the heritage tourism. Camping in the desert is one of the popular activity among expat residents and tourists in the UAE.

Market Concentration & Characteristics

The Middle East luxury market is characterized by moderate degree of innovation, with businesses continuously focusing on differentiating themselves through unique experiences and offerings.The resolve to modernize this region’s infrastructure and enhance its hospitality sector has driven a significant development in the sector. The government has made initiatives to boost domestic tourism and dissuade potential outbound visitors from taking a trip overseas. Religious tourism is the key draw for incoming travelers and will remain so for the foreseeable future.

The industry is also characterized by a moderate level of merger and acquisition (M&A) activity by the leading players. This is due to several factors, supporting government regulations, increased investments by market players, growing demand to construct tourist attractions. Increased real-estate activities coupled with huge presence of global market players in the region.

End-user concentration is a significant factor in the Middle East Luxury travel market.Increasing trend of travelers packing in more destinations on a short trip, giving rise to the concept of “country coupling”. For instance, travelers plan a ski adventure in the first half of a trip and end with a beach destination; or combine a safari jungle or nature-based adventure with a stay with locals in an exotic city.According to an article published in Finn Partners in 2022, Gen Z individuals have been eager to travel after the COVID-19 pandemic and are planning trips to experience the art, architecture, and culture of new regions.

Tour Insights

The luxury safari & adventure travel market held a revenue share of 39.76% in 2023.Luxury tents, are commonly known as Glamping. Presence of huge wildlife and national parks boost the popularity and acceptance of tents. Furthermore, majority of outdoor tourism offers a rough experience with luxe amenities in tents such as luxury beds, TV, Wi-Fi, indoor bathrooms, and portable toilets, and among others. The growing adoption of booking systems has made it easier for consumers to select the appropriate tents that meet their needs.

The demand for luxury cruises, yachting and small ship travel is projected to grow at a CAGR of 7.8% from 2024 to 2030.Cruises, yachting, and small ship expeditions are known to epitomize a different way to travel and allows for more access to remote destinations, more peace and quiet, and more engagement with the experience of being on the water. Luxurious cruises, yachting, and small ship expeditions offer fine dining, 24-hour butler service, and unlimited champagne, even on their smallest ships. The number of tourists opting for luxury cruises, yachting, and small ship expeditions are foreseen to rise on account of consumer spending and a gradual increase in luxury lifestyle and leisure travel expenses, and substantial increase in repositioning cruises.

Age Group Insights

The participation of luxury travelers between 41 to 60 age group accounted for the revenue share of 36.27% in 2023. These travelers are healthy, wealthy, independent, educated, and have an abundance of leisure time. They have a flexible budget and are becoming tech savvy to get the best deals and prevent hassles while planning luxury travel trips. For instance, in 2019, 41-60 age group were planning on taking a total of 4-5 leisure trips on which they planned to spend over USD 6,600, which is about 20% to 50% more than their Gen X or 21-30 age group travelers counterparts.

The participation of luxury travelers between the 21 to 30 age group is estimated to grow at a CAGR of 5.8% from 2024 to 2030. Social media, and Instagram in particular, have provided a significant boost in hospitality spending for countries that were able to tap into influencer marketing and picture-perfect experiences. Furthermore. most 21-30 age group travelers who are adventure travelers have cited exploring new places, relaxation, time with family/friends, and learning about new cultures as the most important part of their travel experiences.According to a November 2022 blog on Luxe Digital, 21-30 age group travelers are 23% more interested in exploring the world than the older generations and make up 20% of all international tourists. Affluent 21-30 age group travelers who plan luxury vacations are increasingly inspired by stories of authenticity and truthfulness. This age group also shows a preference for experiencing the history and traditions of the country they visit.

Country Insights

The presence of several tourist destinations such as exotic desserts, high buildings, modern infrastructure, wild life, beaches, and luxury hotels & cafes.  Dubai is one of the most attractive tourist location. High spending capacity of population and growing propensity for active outdoor adventures and sightseeing, as well as cultural activities is anticipated to boost market growth. Furthermore, increasing celebrity endorsement in the region and growing awareness of tours spots through social media such as Instagram, Facebook, and others are expected to boost market growth over the forecast period.

Saudi Arabia Luxury Travel Market Trends

Saudi Arabia luxury travel market is expected to grow at a CAGR of 5.9% from 2024 to 2030. Presence of multiple tourist’s attractions National Museum, King Fahd’s Fountain, and Al Masmak Fortress. Furthermore, religious, historical, water tours are anticipated to boost market growth.

Key Middle East Luxury Travel Company Insights

Some of the key players operating in the market include Exodus Travels, Explore!, and Intrepid Travel.

• Exodus Travels is one of the leading luxury travel operator in this region. The trip style offered by them are small ship & expedition cruises, group tours, and independent/self-guided packages.  They offer easy cancellation process and health safety.

• Explore! is famous for their expert local guides that help ease the unknowns of adventure travel while brining unique experience and richness.

Memphis Tours, Topdeck, and Project Expedition are some of the emerging market participants in the Middle East luxury travel market

• Memphis Tours is famous for providing personalized and authentic travel experience to historical and cultural destinations.

• Topdeck is perfect choice for 18-30 years age group to travel internationally with pocket friendly budget and a chance a make new friends along the way.

Recent Developments

• In October, 2023, Exodus Travels announced changing of name from Exodus Travels to Exodus Adventure Travels.

• 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.

Middle East Luxury Travel Market Report Scope

Middle East Luxury Travel Market Report Segmentation

This report forecasts revenue growth at 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 Middle East luxury travel market report based on tour, age-group, and country:

• 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)

  • 21-30

  • 31-40

  • 41-60

  • 60+

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

  • Middle East

    • Saudi Arabia

    • UAE

    • Qatar

    • Kuwait