Global Luxury Travel Market Overview:
Luxury Travel Market Size was valued at USD 1951.2 Billion in 2022. The luxury travel market industry is projected to grow from USD 2072.1 Billion in 2023 to USD 3352.9 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.20% during the forecast period (2024 - 2032). The growth of middle and upper classes in emerging markets fuels demand for luxurious travel experiences, which are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
On February 04, 2024, Ten Lifestyle Group plc (AIM: TENG) disclosed that it had formed a new partnership with Global Travel Collection (GTC) International luxury travel agency, which is the biggest collection of travel agencies. For it, Ten will leverage its luxury lifestyle experience to GTC's 1,300 travel agents, thus improving the quality of leisure trips by enhancing the premium travel offered to leisure travelers, travel for corporate executives, and the entertainment industry.
Luxury Travel Market Trends
Online booking platforms, mobile apps, and virtual reality tours enhance convenience and accessibility Anticipated market growth
Market CAGR for the speedy evolution of generation has substantially transformed the luxurious journey industry, enhancing the overall consumer experience. According to a survey performed via the International Luxury Travel Market (ILTM), 85% of luxury travelers recollect technology as a vital element of their adventure. Online reserving platforms, virtual reality (VR) excursions, and synthetic intelligence (AI)-pushed personalization have grow to be crucial in delivering seamless and immersive journey experiences. Notably, high-quit lodge chains and comfort excursion operators leverage modern technology to offer customized itineraries, real-time assistance, or even digital previews of accommodations, contributing to an extraordinary stage of comfort and personalization for prosperous travelers.
Additionally, the growth in disposable income is a pivotal driver for the luxury travel sector, as highlighted by data from the World Travel & Tourism Council (WTTC). The organization reports a consistent increase in global per capita income, directly influencing the surge in luxury travel expenditures. As individuals and families experience a boost in their financial resources, they are more inclined to invest in premium travel experiences. This upward economic trend has created a robust market for luxury accommodations, exclusive services, and high-end transportation options, fostering the expansion of the luxury travel industry across various regions.
Sustainability has come to be an important consciousness within the luxury tour landscape, aligning with the growing worldwide focus of environmental issues. The International Ecotourism Society (TIES) reviews a growing call for eco-friendly and socially responsible travel studies among luxurious customers. Luxury accommodations and inns are responding to this call for by way of adopting sustainable practices, together with energy-green technology, waste reduction tasks, and help for local communities. As in keeping with a observe through the Luxury Institute, 70% of excessive-internet-well worth people prioritize green practices whilst selecting luxurious journey options. This emphasis on sustainability not simplest reflects a dedication to environmental stewardship but additionally caters to the conscientious options of affluent travelers, riding the industry in the direction of extra responsible and eco-aware services. Thus, driving the luxury travel market revenue.
Luxury travel Market Segment Insights:
Luxury travel Types of Tour Insights
The luxury travel market segmentation, based on Types of Tour includes Customized and private vacations, Adventure and safari, Cruise/ship expedition, Small group journey, Celebration and special events, culinary travel and shopping. The Adventure and safari segment dominated the market, accounting for double growth of market. Modern luxury travelers seek unique, immersive experiences, driving growth in niche markets like adventure tourism, cultural exploration, and eco-friendly travel.
Luxury travel Age Group Insights
The luxury travel market segmentation, based on Age Group includes Millennial, Generation X, Baby Boomer, Silver hair. The Generation X Based category generated the most income. Tailored and personalized travel experiences, from customized itineraries to exclusive perks, attract high-end clientele.
Luxury travel Types of Traveler Insights
The luxury travel market segmentation, based on Types of Traveler includes Absolute luxury, Aspiring Luxury, and Accessible Luxury. Accessible Luxury is dominating the market 2022. High-profile endorsements and collaborations with influencers create aspirational travel trends, influencing consumer choices. Increasing awareness of environmental issues prompts luxury travelers to choose eco-friendly and sustainable options, fostering the growth of responsible tourism.
Figure 1: Luxury travel Market, by Types of Traveler, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Luxury travel Regional Insights
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The demand for private jets and exclusive transportation services caters to the privacy and convenience sought by luxury travelers.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: LUXURY TRAVEL MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe luxury travel market accounts for the second-largest market share due to the growing interest in art, culture, and history leads to the popularity of luxury travel experiences centered on museums, galleries, and historical landmarks. Further, the German Automotive luxury vehicle market held the largest market share, and the UK luxury travel market was the fastest growing market in the European region
The Asia-Pacific luxury travel Market is expected to grow at the fastest CAGR from 2023 to 2032. The rise of remote work allows affluent individuals to combine work and leisure, driving the demand for luxury accommodations in exotic locations. Moreover, China’s luxury travel market held the largest market share, and the Indian luxury travel market was the fastest growing market in the Asia-Pacific region.
Luxury travel Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to expand their Age Group lines, which will help the luxury travel market, grow even more. The luxury travel market is a fast-paced and competitive industry that includes everything from service with trade luxury travels, with important market developments and the landscape of rivalry greatly relies on the kind and scope of events, and also the region in which they occur. To expand and survive in a more competitive and rising market climate, luxury travel industry must offer business meetings, conventions, and various other kinds of incidents constitute a part of the luxury travel market.
Each of these markets has its own set of characteristics and competitors in the global luxury travel industry to benefit clients and increase the market sector. In recent years, the luxury travel industry has offered some of the most significant Types of Travelers. Major players in the luxury travel market, including Tauck, Inc., Thomas Cook India Ltd., Scott Dunn Ltd., TUI Group, Abercrombie & Kent USA, LLC, Butterfield & Robinson Inc., Kensington Tours, Travelopia Holdings Limited, Zicasso, Inc., Micato Safaris, and others, are attempting to increase market demand by investing in research and development operations.
Founded in 1925 by Arthur Tauck, Tauck, Inc. stands as a renowned American tour and cruise operator, celebrated for its commitment to delivering exceptional travel experiences. With a heritage spanning nearly a century, Tauck has earned a stellar reputation for crafting immersive and meticulously curated journeys across the globe. Specializing in upscale guided tours, river cruises, and small-ship ocean cruises, Tauck places a strong emphasis on luxury, enrichment, and personalized service. The company's diverse portfolio includes destinations ranging from Europe and Asia to North and South America, with each itinerary designed to provide travelers with a deeper understanding of the local culture and history. Tauck's dedication to excellence and innovation has garnered numerous industry awards, solidifying its position as a leader in the luxury travel sector.
Established in 1881, Thomas Cook India Ltd. is a pioneering travel and integrated travel-related financial services company that has been shaping the travel industry for over a century. Acquired by Fairfax Financial Holdings Limited in 2012, the company continues the legacy of Thomas Cook by offering a comprehensive range of travel services, including leisure travel, corporate travel, and foreign exchange. Thomas Cook India operates a vast network of offices and branches, providing end-to-end travel solutions to individuals, families, and businesses. Beyond traditional travel services, the company also extends its expertise to travel insurance, visa services, and travel-related financial products. With a commitment to customer satisfaction and a wide array of travel offerings, Thomas Cook India remains a trusted name in the travel and tourism sector, catering to the diverse needs of a dynamic and evolving market.
Key Companies in the luxury travel market include
- Tauck, Inc.
- Thomas Cook India Ltd.
- Scott Dunn Ltd.
- TUI Group
- Abercrombie & Kent USA, LLC
- Butterfield & Robinson Inc.
- Kensington Tours
- Travelopia Holdings Limited
- Zicasso, Inc.
- Micato Safaris
Luxury travel Industry Developments
In June 2023: Lindblad Expeditions collaborated with FOOD & WINE magazine to launch an eight-day journey through the Pacific Northwest along the Columbia and Snake Rivers. During this expedition, guests explored the region's historical, agricultural, and natural aspects and savored the local cuisine and wines
In February 2023: Australia-based Flight Centre Travel Group signed an agreement to purchase Scott Dunn Ltd. for approximately USD 149 million. Flight Centre Travel Group is the proprietor of leisure and corporate travel enterprises in over 20 countries. This acquisition serves as the company's strategic entry into the luxury market in both the UK and the U.S., expediting its initiative to establish a collection of luxury travel brands
In September 2022: Cox & Kings Ltd. unveiled its 2023-24 Worldwide Brochure, which included six new tours. Additional tours to France, Turkey, India, Pakistan, and Jerusalem were introduced in the brochure. The 208-page brochure covers departures till the end of 2024 and all the trips are capped at 14 guests per group
In July 2023, Lindblad Expeditions, together with FOOD & WINE magazine, announced an eight-day Columbia and Snake resumable travel of eight days in the Pacific Northwest region. While on the trip, the guests were engaged in the region’s history, farms and nature, as well as tasted local food and wines.
In February 2023, Flight Centre Travel Group from Australia announced it would purchase Scott Dunn Ltd for USD 149 million. The Flight Centre Travel Group owned leisure and business-oriented travel companies that operate in twenty plus nations across the globe. This deal represents the company’s strategic entry into the high-end segment in the UK and US and will fast-track its strategy to build a portfolio of high-end travel brands.
In September 2022, Cox & Kings Ltd. reached the culmination of its '2013 – 14 Worldwide Brochure' by presenting for sale six out of their eight new tours. The brochure also offered extra tours through France, Turkey, India, Pakistan and Jerusalem. The 208-page brochure extends all the departures until the end of 2024, and all the trips are done with a maximum of fourteen guests in one group.
Luxury travel Market Segmentation:
Luxury travel Types of Tour Outlook
- Customized and private vacations
- Adventure and safari
- Cruise/ship expedition
- Small group journey
- Celebration and special events
- Culinary travel and shopping
Luxury travel Age Group Outlook
- Millennial
- Generation X
- Baby Boomer
- Silver hair
Luxury travel Types of Traveler Outlook
- Absolute luxury
- Aspiring Luxury
- Accessible Luxury
Luxury travel Regional Outlook
North America
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
Rest of the World
-
Middle East
-
Africa
-
Latin America
| Report Attribute/Metric |
Details |
| Market Size 2022 |
USD 1951.2Â Billion |
| Market Size 2023 |
USD 2072.1 Billion |
| Market Size 2032 |
USD 3352.9 Billion |
| Compound Annual Growth Rate (CAGR) |
6.20% (2024-2032) |
| Base Year |
2023 |
| Market Forecast Period |
2024-2032 |
| Historical Data |
2018- 2022 |
| Market Forecast Units |
Value (USD Billion) |
| Report Convered |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Types of Tour, Age Group, Types of Traveler, and Region |
| Geographies Covered |
North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered |
The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled |
Tauck, Inc., Thomas Cook India Ltd., Scott Dunn Ltd., TUI Group, Abercrombie & Kent USA, LLC, Butterfield & Robinson Inc., Kensington Tours, Travelopia Holdings Limited, Zicasso, Inc., Micato Safaris |
| Key Market Opportunities |
Rising disposable incomes |
| Key Market Dynamics |
Growing desire for wellness and mindfulness |
Frequently Asked Questions (FAQ) :
The global luxury travel market size was valued at USD 1951.2 Billion in 2022.
The global market is projected to grow at a CAGR of 6.20% during the forecast period, 2024-2032.
North America had the largest share in the global market
The key players in the market are Tauck, Inc., Thomas Cook India Ltd., Scott Dunn Ltd., TUI Group, Abercrombie & Kent USA, LLC, Butterfield & Robinson Inc., Kensington Tours, Travelopia Holdings Limited, Zicasso, Inc., Micato Safaris
The Adventure and safari category dominated the market in 2022.
The Generation X had the largest share in the global market.
