San Francisco, 02 April 2024: The Report Luxury Travel Market Size, Share & Trends Analysis Report By Tour (Customized & Private Vacations, Safari & Adventure, Celebration Journeys, Luxury Trains), By Age Group (21 - 30 Years, 31 - 40 Years, 41 - 60 Years), By Region, And Segment Forecasts, 2024 - 2030

The global luxury travel market size is expected to reach USD 2.33 trillion by 2030, growing at a CAGR of 7.9% during the forecast period, according to a new report by Grand View Research, Inc. The growing desire to escape the stress, hustle-bustle, and routine of everyday life has driven the attraction for luxury travel. The increasing life expectancy and improved health conditions even in old age are encouraging more and more consumers to enjoy an active and adrenaline-driven lifestyle.

Micro trips, the new trend in the industry, is expected to boost the growth of this market during the forecast period. Tourists are visiting more travel places in shorter time periods. To stay and spend quality time and create memories during short time frames in a unique and remarkable type of accommodation is expected to become trendy in the forthcoming years.

The demand for luxury travel focused on wellness continues to surge, with travelers actively seeking experiences, itineraries, and products tailored to health, fitness, nutrition, appearance, sleep, and mindfulness. According to a 2021 American Express survey, 76% of respondents expressed a desire to allocate more of their travel budget toward improving their overall well-being, while 55% indicated a willingness to invest extra in wellness activities for future vacations. Although many spas and health retreats faced closures during the pandemic, the Global Wellness Institute anticipates a robust recovery, projecting an annual growth rate of 17% and an estimated market value of USD 150 billion by 2030.

In terms of luxury cultural tourism, festivals have become a major focus, and notions of authenticity have become spots of attraction in the festivals. Tourists seek an authentic experience of festival and their associated cultural rituals performed by local people and their traditional practices. For instance, in August 2022, the Indian government announced new waterways between Mathura, Vrindavan, and Agra to promote religious tourism. Under this project, the cruises to Gokul, Vrindavan, and Mathura will be connected by waterways on the Yamuna River at affordable rates. Vrindavan and Mathura has a rich cultural heritage of fairs and festivals, to name a few: Holi, Charkula dance, Raasleela, Latthmar Holikotsav, Yamuna Janmotsav, Janmashtami Mela, and many more.

Social connectivity is another emerging trend among luxury travelers to connect and experience different societies and cultures. For example, G Adventures (formerly known as Gap Adventures) is a social enterprise and small-group adventure travel company that brings travelers closer to society and its culture. G Adventures is capitalizing on the social connectivity trend by providing an opportunity for local communities to connect and socialize with travelers seeking cultural exploration.

Companies in the market are focusing on strategies such as mergers and acquisitions in order to gain market share and increase their service footprint. In June 2021, Inspirato LLC, the innovative luxury travel subscription brand, and Thayer Ventures Acquisition Corp., a publicly traded special purpose acquisition company, announced that they have entered into a definitive merger agreement that will result in Inspirato becoming a publicly listed company. This merger enabled the company to increase and broaden its service capabilities and bolster its package offerings.

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Increasing spending by elite travelers to visit unexplored destinations and gain new experiences is driving the market growth. In addition, the rising trend of micro trips and the rapidly expanding tourism sector across the globe have been boosting the market growth.

Luxury Travel Market Report Highlights

• Based on tour, the culinary travel & shopping segment is anticipated to grow at the fastest CAGR over the forecast period. Culinary travel, often referred to as food tourism packages, encompass travel offerings that revolve around food and beverages. These packages are tailored to include destinations, sites, attractions, or events with a focus on the culinary aspect.
• The 21 to 30 years age group segment is expected to witness substantial growth in its CAGR from 2024 to 2030. Millennials prioritize experiences over material possessions, valuing the memories and personal growth that luxury travel can provide. Millennials are hence shifting their focus from traditional pampering to a wider range of compelling traveling experiences.
• Europe dominated the global market in 2023. The growth of this region is majorly attributed to the rising travel connectivity. Rapid penetration of high-speed internet has made even the most remote places in European countries like Germany, accessible to travelers. This is driving the need to explore new, exotic, and exciting locations across the region, thereby strengthening the luxury travel market.

Personalized services, reliable transport, exclusivity, and positive & professional interaction with staff is what sets the benchmark for luxury travel. Traveling around the world is being greatly influenced by favorable factors such as growing political stability, improving attitude toward gender, ethnicity, sexual orientation, and race, and more accommodating visa regulations. Travelers are looking to create their own unique experiences through flexible itineraries that combine entertainment as well as relaxation.

An increasing number of travelers are opting for tours of their preferred destinations due to the desire to learn more about the place that they are visiting. Luxury travelers often prefer customized and private tours to general tour packages for unique and highly personal experiences. The post-pandemic trends of private tours due to concerns for health and safety are driving the luxury travel market. Customized and private tours let people travel with their friends and family at their own pace. For instance, according to a TripAdvisor survey, the fastest-growing tours are family-friendly ones. Bookings for these tours increased by over 200% in 2021, and 291% for U.S. travelers.

The growing population of high net-worth individuals (HNWIs) across the globe and this group will be one of the most crucial travel groups that will help bring the industry on track and is expected to propel market growth over the forecast period. According to the World Wealth Report 2022, the total HNWI population was pegged at expanded by 7.8%, and wealth swelled by 8% in 2021.

Luxury Travel Market Report Scope

The market growth stage is medium and the pace of growth is accelerating. The degree of innovation is high in the market owing to the variety of customizable and comprehensive journey packages offered by the service providers. In March 2021, Travelive, a luxury travel company with offices in the U.S. and Europe, announced the official addition of Croatia to its portfolio of destinations. Travelive will now provide full-service for foreign independent travel (FIT) itineraries, shorex, pre and post cruise options, specialized guide services, private transfers and 24-hour client support across Croatia. Such initiatives are expected to propel the customized and private luxury travel market growth over the forecast period.

List of Key Players in Luxury Travel Market

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