Luxury Travel Market Size, Share, Industry Analysis, Trends, Growth, 2032

Luxury Travel Industry Prospective:

The global luxury travel market size was evaluated at $1.50 trillion in 2023 and is slated to hit $3.30 trillion by the end of 2032 with a CAGR of nearly 8% between 2024 and 2032.

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Luxury Travel Market: Overview

Luxury travel provides an exclusive experience for those persons who seek comfort and lavishness. Furthermore, luxury travel helps in providing travelers with unrivaled services, custom-made itineraries, and luxurious accommodations. Reportedly, it transforms a journey into a curated masterpiece. Accommodations in luxury travel range from private villas to resorts, thereby providing tranquility to consumers.

Key Insights

• As per the analysis shared by our research analyst, the global luxury travel market is projected to expand annually at the annual growth rate of around 8% over the forecast timespan (2024-2032) 
• In terms of revenue, the global luxury travel market size was evaluated at nearly $1.50 trillion in 2023 and is expected to reach $3.30 trillion by 2032. 
• The global luxury travel market is anticipated to grow rapidly over the forecast timeline owing to a growing demand for lavish accommodations and transport solutions along with the need for personalized services. 
• In terms of tour, the safari & adventure segment is slated to register the highest CAGR over the forecast period. 
• Based on age group, the 41 years-60 years segment is predicted to contribute majorly towards the global industry size in the upcoming years. 
• Region-wise, the European luxury travel industry is projected to register the fastest CAGR during the forecast timespan.

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Luxury Travel Market: Growth Factors

Growing increase in the per capita income to contribute majorly towards the global market expansion

Humungous demand for lavish accommodations and transport solutions along with a need for personalized services will drive the expansion of the global luxury travel market. A huge wealth accumulation among individuals with a rise in disposable income and the need for relieving oneself from stress is anticipated to soar the growth of the global market. Massive increments in online booking tools and the need for unique experiences are likely to spur the expansion of the market across the globe. Surging affluence and a rise in the traveling trends witnessed among the millennial population are likely to boost the global market progression in the ensuing years. Furthermore, factors such as ease of traveling to exotic places and shifting customer trends for paying a premium to gain exquisite experience are predicted to bolster the progress of the market across the globe.

Luxury Travel Market: Restraints

Huge expenditure incurred due to luxury travel & tourism activities can downsize the growth of the industry globally

Political instabilities witnessed in the countries of Latin America and Africa can restrict the expansion of the global luxury travel industry. A rise in the costs of traveling & transportation will further put brakes on the growth of the industry across the globe.

Luxury Travel Market: Opportunities

Growing trend among the travelers in exploring new tourist places can open new growth avenues for the global market

A prominent increase in the spending by middle-income groups on travel & leisure activities along with rising standards of living of the people in emerging economies is likely to open new growth avenues for the global luxury travel market. Growing preference of people to experience new destinations and cultures will steer the growth of the market globally.  

Luxury Travel Market: Challenges

Tough laws about extension of visas to migrant population can obstruct the global industry expansion

Strict government legislation pertaining to granting visas and passports to citizens & migrants can pose a big challenge to the expansion of the luxury travel industry globally. Moreover, the outbreak of pandemics such as COVID-19 can further decrement the growth of the industry across the globe.

Luxury Travel Market: Segmentation

The global luxury travel market is divided into tour, age group, and region.                                          

In tour terms, the luxury travel market across the globe is bifurcated into customized & private vacations, luxury trains, safari & adventure, and celebration journey segments. Additionally, the safari & adventure segment, which gathered nearly three-fourths of the global market proceeds in 2023, is anticipated to register the highest annual growth rate in the forecast timeframe. The expansion of the segment in the next few years can be owing to the growing trend among the travelers seeking an in-depth knowhow of local cultures & cuisines and a habit of adventure. 

Based on the age group, the global luxury travel industry is divided into 21 years- 30 years, 31 years-40 years, and 41 years-60 years segments. Moreover, the 41 years-60 years segment, which accumulated approximately 57% of the global industry share in 2023, is predicted to account for huge profitability towards the global industry size in the coming eight years. The segmental growth in the upcoming years can be credited to financial stability of the persons falling in the age group of 41-60 years, desire to travel to exotic destinations, and lot of time for leisure activities for the people falling in this age group. 

Luxury Travel Market: Report Scope

Luxury Travel Market: Regional Insights

North America is expected to maintain its leadership status in the global market in the next couple of years

North America, which accounted for about 56% of the global luxury travel market earnings in 2023, is slated to maintain regional dominance in the assessment period. In addition to this, the regional market expansion in the next few years can be due to an increment in the high-end lodgings and bookings for luxury travel in countries such as Canada and the U.S. Furthermore, a robust economy and political stability as well as moderate climatic conditions will steer the growth of the market in the region.

The European luxury travel industry is expected to register the highest gains in the analysis timeline. The rapid progress of the industry in the continent can be owing to strong travel connectivity along with a swift penetration of high-speed networks such as 5G in the European countries is likely to prompt the expansion of the industry in Europe.

Key Developments

• In the first half of 2023, Lindblad Expeditions signed a strategic partnership agreement with FOOD & WINE magazine for introducing an eight-day luxury travel via Columbia and Snake rivers. Such strategic moves will drive the growth of the luxury travel business across the globe. 
• In the first quarter of 2023, Flight Centre Travel Group signed an acquisition agreement with Scott Dunn Limited for nearly US$150 million. The acquisition is aimed at the firm’s entry into the luxury travel business in countries such as the U.S. and the UK.

Luxury Travel Market: Competitive Space

The global luxury travel market profiles key players such as:

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

The global luxury travel market is segmented as follows:

By Tour

• Customized & Private Vacations
• Luxury Trains
• Safari & Adventure
• Celebration Journeys

By Age Group

• 21 years- 30 years
• 31 years-40 years
• 41 years-60 years

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa