Global Luxury Travel Market Predicted to Hit $1369.1 Billion, Growing at 8.8% CAGR from 2021 to 2028

Increasing technical advances and personalization in luxury travel is fueling the global luxury travel market growth. The COVID-19 pandemic has adversely impacted the market. The Asia Pacific region is likely to lead the market in the future.

Research Dive has added a new report to its offerings titled, “Luxury Travel Market by Tour Type (Customized & Private, Adventure & Safari, Cruise/Ship Expedition, Small Group Journey, Celebration & Special Events, Culinary Travel, and Shopping), Age Group (Millennial, Generation X, Baby Boomer, and Silver Hair), Traveler Type (Absolute Luxury, Aspiring Luxury, and Accessible Luxury), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021–2028”.

The global luxury travel market is expected to garner $1369.1 billion by 2028, growing at a CAGR of 8.8% from 2021 to 2028. The report provides all-inclusive insights into the present situation and future potential of the market by scrutinizing market drivers and restraints, opportunities, key segments, and regions.

Key Segment Findings of the Luxury travel Market

The market is segmented based on tour type, age group, traveler type, and region.

• The adventure & safari sub-segment of the tour type segment is estimated to witness leading growth by surpassing $543,892.0 million in the estimated period. This growth is mainly because of the growing demand for adventure & safari type of travel trips, as they offer travelers with exceptional and memorable experiences such as outstanding scenery, wildlife adventure, and unusual cultural encounters.
• The baby boomer sub-segment of the age group segment is anticipated to observe highest growth and surpass $517,801.8 million in the estimated period. This growth is mainly because baby boomers generally have flexible schedules, which allows them to travel and go for longer trips.
• The absolute luxury sub-segment of the traveler type segment is anticipated to observe maximum growth and collect a revenue of $757,089.2 million in the estimated period. This growth is mainly because of the rising adoption of luxury trips among travelers, as these trips offer admirable hotels, priority check-ins, decent food services, and better entertainment options such as night clubs, cruise dinner, on-demand services, and others.
• Regionally, the Asia Pacific luxury travel market is projected to observe augmented growth with a CAGR of 14.5% in the estimated period. The growth of this region market is mostly owing to the rising economic development, growing desire among people to explore numerous places, increasing popularity for adventure trips, rising demand for ship/cruise tours among the youths in this region.

Luxury Travel Market Dynamics

The key factor fueling the growth of the global luxury travel market is a significant rise in the demand for exclusive and interesting travel experiences that help people to fight off the stress. In addition, increasing technical advances and personalization in luxury travel is projected to open doors to innovative opportunities for the market growth in the projected period. However, frequent change in the socio-economic conditions of various regions owing to incidences, such as terrorist attacks, riots, political turbulence, natural disasters, and others, is projected to dissuade the market growth during the forecast period.

Impact of the COVID-19 Pandemic on the Luxury travel Market

The COVID-19 pandemic has made a negative impact on the growth of the global luxury travel market in 2020. The implementation of lockdown has stopped the working of travel and tourism industry worldwide. As a result, the demand for luxury travel has greatly hampered. All these factors are hindering the market growth amidst the pandemic period. However, as the pandemic is relaxing since the end of 2021, several travel and tourism companies have recommenced their normal processing; which is obliquely aiding the global luxury travel market to make headway.

Top Players of the Luxury Travel Market

The major players of the global market are Kensington

1. Tours Ltd.
2. Abercrombie & Kent USA, LLC.
3. Cox & Kings Ltd.
4. TUI AG
5. Scott Dunn Ltd.
6. Micato Safaris
7. Thomas Cook Ltd.
8. Meredith Corporation, LLC
9. Travcoa Corporation
10. Butterfield & Robinson Inc., and others.

Numerous business strategies, such as acquisitions, mergers, R&D activities, new product developments, and much more, are implemented by these players to attain a robust position in the global market.

For instance, in June 2022, Titan Travel, a leading provider of escorted coach tours, ocean cruises, and singles holidays, launched one of the most luxurious holidays, ‘Captivating Cultures: A Grand Tour from Rome to Rajasthan by Private Jet’. With this launch, Titan Travel is aiming to make a strong foothold in the global luxury travel market.

Moreover, the report offers other key details such as business tactics, financial performance, and product/service range of the leading players along with Porter’s five forces analysis and SWOT analysis.

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