The global luxury travel market size is expected to reach USD 2.5 trillion by 2025, expanding at a CAGR of 4.6% over the forecast period, according to a new report by Grand View Research, Inc. Increasing disposable income and consumer spending of the middle and upper class, growing demand for the accumulation of travel memories, an increase in micro trips, and emerging tourism and corporate industries all across the globe are expected to drive the market.
Growing traveler’s preference for personalized service, reliable transport, exclusivity, and positive and professional interaction with staff is setting the primary benchmark for luxury travel. Growing political stability across the globe regarding gender, ethnicity, sexual orientation, human rights, racism, citizenship, and less hustle in visa offerings are influencing the people’s decision over potential travel destinations. Long haul travelers are seeking to create their own unique holiday and are demanding flexible itineraries for a combination of entertaining and relaxing travel. This personalization demand of travelers is making their journey more convenient and full of experience.
Elite travelers are preferring to visit unexplored destinations to gain experience and understand the new cultures worldwide. Moreover, they are planning unique trips that include cultural visits, cruising, and adventure activities putting experience over ownership. Travelers now care for access over acquisition and experience over possession, thereby contributing to the growth of the market. Micro trips have emerged as a new trend in the industry, which, in turn, is expected to boost the market growth in the forecast period. Travelers are squeezing in more travel itineraries into shorter time frames. To stay and spend quality time during short getaways in unique and remarkable type of accommodation is expected to become trendy in the forecast period
By tour type, the market is divided as customized and private vacations, safari and adventure, cruises, yachting, and small ship expeditions, celebration journeys, culinary travel and shopping, and others. Safari and adventure accounted for the largest share of 35.3% in the year 2018 as luxury travelers are seeking more depth to understand the local culture, sense of adventure, and less crowded environment. Personalized vacation aimed at safari and adventure is getting popular among all age groups, thereby surging the segment growth.
On the basis of age group, the luxury travel market has been segmented into millennials, generation x, baby boomers, and silver hair. Millennial is the fastest-growing segment with a CAGR of 5.4%. Millennials have a mindset for luxury and its meaningful consumption over owing stuff. They tend to be more independent in their religious and political views, more entrepreneurial, less likely to be married, distrustful of authority, better educated, and more travel-oriented than any other generation. Millennials are shifting their focus from traditional pampering to a wider range of compelling experiences.
North America was the largest regional market in the year 2018 and this trend is expected to continue over the forecast period. In 2018, U.S. was the largest shareholder of this market with a share of 85.5% in North America as it is a global financial hub as well as one of the most popular tourist destinations for people across the world. An increase in shorter trips over long haul trips is expected to fuel the market growth over the forecast period.
Request Free Sample PDF of the research at: https://www.grandviewresearch.com/industry-analysis/luxury-travel-market/request/rs1
Other key findings from the study suggest:
- By tour, the safari and adventure segment is projected to ascend at a CAGR of 4.3% over the forecast period in luxury travel market
- By age group, baby boomers held an overall revenue share of over 40.0% in 2018
- U.S., U.K., Germany, China, India, Brazil, and South Africa are the major countries with the largest market in their respective regions.