The global luxury travel market took in $891.1 billion in 2018, and is expected to reach $1,614.6 billion by 2026, with a year over year pace of 7.9%, according to a new report published by Allied Market
Research. The report looked at: Types of Travelers (Absolute Luxury, Aspiring Luxury, and Accessible Luxury), Age Groups (Millennial, Generation X, Baby Boomers, and Silver Hair), and Types of Tours (Customized & Private Vacations, Adventure & Safari, Cruise/Ship Expedition, Small Group Journey, Celebration & Special Events, and Culinary Travel & Shopping) to determine the breadth and directions of the luxury travel market.
Key Findings in Luxury Travel Market Growth
The study found a steady rise in inclination toward exotic holiday experiences, a surge in middle & upper middle-class spending, a trend toward online booking practices, among other results. However, varying socio-economic situations and impact of natural disasters have affected the pace of market growth. On the other hand, demand for enhanced service standards has increased, as has the emergence of new destinations create lucrative opportunities in the industry.
Adventure and Safari Travel Leading the Pack
Based on type, the adventure and safari segment held the largest share in the global luxury travel market in 2018, accounting for more than two-fifths of the total share, and is estimated to maintain its leadership status during the forecast period. This is due to inclination toward transformative and engaged activities. On the other hand, the culinary travel and shopping segment is expected to register the largest growth rate with a CAGR of 9.7% from 2019 to 2026, owing to surge in outbound travel, eagerness for gaining unique dining experiences in various countries, and organization of many festivals and events.
Millennial Segment Takes Off
Based on age group, the millennial segment is expected to grow at the largest rate with a CAGR of 9.5% from 2019 to 2026, owing to inclination of millennials toward wanderlust and breaking life’s monotony, short trips to culturally rich and different countries, and local shopping. On the other hand, the baby boomer segment accounted for around two-fifths of the total market share of the global luxury travel market in 2018, and is estimated to maintain its highest contribution during the forecast period.
North America Breaks the Pace
North America is estimated to register the fastest growth rate with a CAGR of 11.4% from 2019 to 2026, owing to increase in the international spending on travel, availability of ranches and spa retreats to private islands, and presence of established and highly exclusive resorts. However, Europe held the major market share, accounting for nearly two-fifths of the total share of the global luxury travel market in 2018, and is expected to maintain its leadership status during the forecast period. This is attributed to preference for customized and private vacation and cruise/ship expedition and surge in number of travelers in countries such as Greece, Spain, and Turkey.
Top Selling Travel Companies in the Luxury Market
• Abercrombie & Kent USA, LLC
• Cox & Kings Ltd.
• Micato Safaris
• Ker & Downey
• Thomas Cook Group PLC
• Scott Dunn Ltd.
• Kensington Tours
• Butterfield & Robinson Inc.