The market for luxury travel has gone up to a new level as rich class citizens across the globe are preferring this mode of travelling and spending heavily on luxury travel packages. The travel industry is widening its wings to fulfil the luxury travel demands of such end consumers. The middle class consumers of today are shifting their focus towards urbanization and look for more materialism in the luxury travel, thus the mature markets are yearning the novel and evolved kind of luxury, where luxury would be defined by the relevance of personal and exclusive experience offered to the customers.
The market for luxury travel is majorly driven by business travels. Over the time, most of the business travellers have realised that the cost of stressed economic class journey outpaces the cost of leisured first class journey. The luxury travel industry is however not limited to the travel component of a tourism industry; the opportunities thrive through all different aspects of the tourism industry. Several hotels have now come up with an idea of offering their customers with personalized comfort and services that include high class restaurants offering unmatched and personal fare which take into account not just the calorie intake but also the diet plans followed by the guests and cater to all kinds of dietary requirements. The growth of luxury travel is also attributed to the escalating disposable income and growth of the middle class people across the globe. The stats say that majority of the millionaire are in Asia-Pacific and manage more wealth than their North American peers.
Market Classification and Segment Overview
The luxury travel market is broadly segmented into age groups, tour types and types of travellers. The age groups segment is categorised into millennial, generation x, silver hair and baby boomers. Baby boomers are the people from age 41 to 59, this age group accounts for the majority of share in the market owing to their priority for ‘travel’ and the disposable income and savings. Also, this age group faces lesser heath issues as compared to the silver hairs. Eco tourism, bucket list, second honeymoon and passion tourism are some of the reasons encouraging people from this age group to opt for luxury travel. The types of travellers can be widely categorised into absolute luxury, accessible luxury and aspiring luxury. Business tours, private vacations, culinary tour, special events, small/group tours, cruise/ship expeditions, adventure and safari or customized tour are the different segments of different types of tours in the luxury travel market.
Globally, the market is segmented into North America, Europe, Asia-Pacific, Latin America and Middle East & Africa (MEA). Asia-Pacific is anticipated to exhibit highest growth rate, majorly supported by China, where approximately seven million outbound trips take place annually. Following China is Singapore and India. India, in Asia-Pacific, is analyzed to be the fastest growing country owing to the rising numbers of affluent travellers travelling to landscapes in other regions.
Global Luxury Travel Market
2014 – 2024
2014 – 2015
2017 – 2024
Age Groups, Tour Type, Type Of Travellers, Geography
North America, Europe, Asia-Pacific, Latin America, Middle East and Africa (MEA)
Market Trends, Drivers, Restraints, Porter's Five Forces Analysis, Competitive Analysis,
Player Profiling, Value Chain Analysis
Some of the major players in this market are Thomas Cook Group PLC, Micato Safaris, Abercrombie & Kent USA, Butterfield & Robinson Inc, Cox & Kings Ltd, Ker & Downey, Kensington Tours, Travcoa, Scott Dunn Ltd and Tauck. There are also some other companies playing a key role in the value chain of luxury travel market, viz., Black Tomato, TUI Group, Lindblad Expeditions LLC, Exodus Travels, Zicasso, Inc. and Backroads. In order to capitalize on higher service standards, the market players have formulated distinctive strategies that would target the surge in middle class segment, for example, hire skilled personals with varied linguistic skills and good communication skills. This way the demand for unique travel experience would offer myriad opportunities for the industry to continue to remain competitive.
Market by Age Groups
· Millennial (Age Group 21-30)
· Generation X (Age Group 31-40)
· Baby boomers (Age Group 41-60)
· Silver hair (Above 60)
Market by Tour Type
· Business tours
· Private vacations
· Culinary tour
· Special events
· Small/group tours
· Cruise/ship expeditions
· Adventure and safari or customized tour
Market by Type Of Travellers
· Absolute luxury
· Accessible luxury
· Aspiring luxury
Market by Geography
· North America
o Rest of Europe
o Rest of Asia-Pacific
· Latin America
o Rest of Latin America
· Middle East and Africa (MEA)
o South Africa
o Saudi Arabia
o Rest of MEA
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