The global luxury travel market is expected to generate $1,614 billion by 2026, growing at a CAGR of 7.9% during 2019–2026. In 2018, North America and Europe collectively accounted for around 63% of the overall market revenue.
The report entitled Luxury Travel Market: Global Opportunity Analysis and Industry Forecast, 2019-2026, indicates that increase in preferences of travelers toward unique, premium and exotic holiday experiences, rise in disposable income of middle and upper middle group, and the increase in impact of social media platforms on travel and tourism industry are the key factors driving the revenue growth of the market.
Emergence of new tourist destinations and increase in standards of service providers in these destinations are anticipated to further increase the overall demand for luxury travel.
The adventure and safari segment accounted for about 43% of the overall luxury travel market share, by tour type in 2019, as this is identified as the popular vacation option among young and middle age group travelers.
Culinary travel and shopping segment would witness the fastest luxury travel market growth, registering a CAGR of 9.7% during the forecast period. An increase in number of luxury travelers are indulging in these tours as they enable these travelers to experience the finest local delicacies and also buy some of the most exquisite handicrafts.
These trips are getting popular among travelers of all age groups, especially the millennials (21-30 years).
The baby boomers segment is projected to hold the highest market share in the overall luxury travel market, by age group, as they have been identified as the highest travel spenders.
Strong purchasing power and search for exclusivity with high comfort are the major factors promoting the demand for luxury travel activities by absolute luxury travelers.
It has been identified that the absolute luxury travelers take at least 3-4 luxury trips per year. Among the luxury traveler types, the absolute luxury traveler segment is projected to grow at a CAGR of 8.1% during the forecast period (2019-2026).
Regionally, Asia Pacific’s luxury travel market would exhibit the fastest growth owing to the increase in spending on infrastructure building across leading travel and tourism destinations. India is estimated to register CAGR of 15.5% from 2019 to 2026.
This significant growth in the country is attributed to active participation of service providers, social communities and government authorities in luxury tourism services. Europe and Caribbean countries would continue to be the most preferred luxury travel destinations for the travelers.