Global Luxury Travel Market Report and Forecast 2024-2032

Global Luxury Travel Market Outlook

The global luxury travel market size reached approximately USD 2.07 trillion in 2023. The market is assessed to grow at a CAGR of 5.5% between 2024 and 2032 to attain a value of around USD 3.38 trillion by 2032.

Key Trends in the Market

Luxury travel refers to a type of tourism that is associated with exclusive, personalised, and unique experiences. Luxury travellers typically choose high-end accommodations such as international hotels and exclusive boutique travel.

• One of the major factors aiding the luxury travel market growth is the increasing disposable incomes of the middle-class population. Although luxury travel has been traditionally associated with high-net-worth individuals, celebrities, influencers, and business tycoons, a growing young population with rising income levels and a knack for adventure and unique experiences is fuelling the market.

• The luxury travel market demand is being propelled by the growing demand for rejuvenating and relaxing travel experiences by affluent individuals amid the rising trend of self-care and the growing focus on overall well-being. With the affluent population prioritising their mental, physical, and spiritual health, the interest in luxury wellness travel, especially in countries like India, Thailand, Switzerland, and Japan, is increasing.

• The rising demand for personalised services and offerings is one of the key luxury travel market trends. Luxury travellers value tailored and unique experiences that can cater to their specific interests. To capitalise on this trend, luxury travel operators and agents are leveraging innovative technologies such as data analytics to analyse the preferences, interests, social media activities, and travel history of affluent travellers to provide them with exclusive and personalised luxury travel experiences.

High-end travellers are also demanding authentic, meaningful, and unique experiences, hence choosing offbeat destinations not frequented by the masses with personalised tours and exclusive services.

• The increasing trend of sustainable travel is significantly driving the luxury travel market development. Luxury travellers are willing to spend more on travelling responsibly, preserving local culture and biodiversity, and contributing to the local economy. Moreover, they are choosing low-carbon emission modes of transportation and eco-friendly luxury accommodations that use sustainable practices, renewable energy, and eco-friendly and responsibly sourced materials.

Market Analysis

Based on tour type, the luxury travel market segmentation includes customised and private vacation, adventure and safari, cruise and ship expedition, small group journey, celebration and special event, and culinary travel and shopping.

On the basis of age group, the market can be divided into millennial (21-30 years), Generation X (31-40 Years), baby boomers (41-60 years), and silver hair (60 years and above). The major regional markets for luxury travel include North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the global luxury travel market, covering their competitive landscape and latest developments like mergers, acquisitions, investments and expansion plans.

• Abercrombie & Kent Ltd. 

• Scott Dunn Ltd. 

• TUI Group 

• Tauck, Inc. 

• Lindblad Expeditions, LLC 

• Taicoa Corporation (Micato Safaris, Inc.)

• Exodus Travels Limited 

• Travelopia Holdings Limited 

• Butterfield & Robinson Inc. 

• Globus Travel Kft. 

• Others

Market Share by Age Group

As per the luxury travel market analysis, millennials prefer luxury immersive and experimental travel that can provide them with spiritual awareness, physical enrichment, and intellectual nourishment. Moreover, luxury tours with a focus on culture, art, history, and music are gaining popularity among millennials seeking authentic and unique experiences.

Market Share by Region

The Asia Pacific accounts for a substantial portion of the luxury travel market share. Countries such as Thailand, India, Japan, Singapore, and Vietnam have emerged as leading destinations for travellers seeking a blend of comfort, luxury, natural beauty, and culture. The increasing number of luxury hotels, coupled with exceptional customer services and diverse locations in the region, is further aiding the market growth.

Besides, the surging number of high-net-worth-individuals (HNWI) and ultra-high-net-worth individuals (UHNWI), especially in countries like China, Japan, Singapore, and Hong Kong, are expected to positively impact the luxury travel market expansion in the coming years.

Competitive Landscape

Abercrombie & Kent Ltd., established in 1962, has been a pioneer in the luxury adventure travel sector. It is recognised as one of the premier travel companies in the world and offers its services in over 100 countries. The company offers different types of travel services, ranging from private jet journeys to small group journeys, and luxury expedition cruises.

Scott Dunn Ltd. is a leading travel operator that is headquartered in London, the United Kingdom. The company offers high-end adventurous holidays across the globe, from Antarctica to the Alps. It aims to use its expansive knowledge to create customised, personalised, immersive, and memorable travel experiences.

TUI Group has established its position as a reputed tourism platform company that offers services in prominent holiday destinations across the globe. With its focus on social, economic, and environmental sustainability, the company has created memorable trips for more than 21 million travellers.

Other luxury travel market players include Tauck, Inc., Lindblad Expeditions, LLC, Taicoa Corporation (Micato Safaris, Inc.), Exodus Travels Limited, Travelopia Holdings Limited, Butterfield & Robinson Inc., and Globus Travel Kft., among others.

Key Highlights of the Report