Luxury Travel Market – 30% of Growth to Originate from Europe
Luxury refers to all that can be obtained that is differentiated, unique, and exclusive. It does not respond to the demand, it does not satisfy the desires of the masses, nor does it seek positioning; it is a product or service that is offered to all but that not all of them can reach. 30% of the luxury market’s growth will originate from Europe during the forecast period. Germany, France, and the UK are the key markets for luxury travel in Europe. luxury travel
Market growth in this region will be slower than the growth of the market in other regions. The growing disposable income, the increasing number of baby boomers, the presence of numerous exotic destinations, the increasing demand for personalized vacations, the availability of easy transport facilities, the rapid increase in the number of food and beverage festivals, and the presence of major vendors will facilitate the luxury travel market growth in Europe over the forecast period.
The potential growth difference for the luxury travel market between 2020 and 2025 is USD 1.23 trillion.
Key Market Dynamics: Drivers & Challenges luxury travel
- Market Driver – The key factor driving growth in the luxury travel market is increasing disposable income. Factors such as the rise in dual household income, per capita income, and rapid growth in the employment rate have driven the increase in disposable incomes worldwide. The growth in disposable income is expected to increase the spending and purchasing power of consumers. The boom in the tourism industry has also encouraged consumers to spend on travel and leisure activities with exotic holiday experiences. Therefore, the increasing disposable income boosts the demand for luxurious travel to different destinations across the world, which, in turn, is fostering the growth of the global luxury travel market.
- Market Challenges – The inconsistent service quality will be a major challenge for the luxury travel market. The market vendors deal with diverse customers from different geographies. To maximize the degree of customer satisfaction, the vendors must cater to diverse preferences and seasonal demand. In addition, the high degree of diversity and inconsistency in supplier offerings impacts the quality of services offered by the existing market vendors. Thus, inconsistencies in a certain element in the value chain, such as a delay in service delivery or bad customer service, impact other elements as well. Fake advertisements often contribute to increased customer dissatisfaction, especially for luxury travel, where travelers pay a high price for packages. Poor transportation and hospitality infrastructure in developing countries, especially in traditional and historic places, also pose a significant challenge to the global luxury travel market.
The luxury travel market is fragmented, and the vendors are deploying organic and inorganic growth strategies to compete in the market.
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- Abercrombie & Kent USA LLC
- Absolute Travel Inc.
- Butterfield & Robinson Inc.
- Classic Journeys
- Cox & Kings Ltd.
- Indigenous Tourism BC
- Odyssey World
- Responsible Travel
- Scott Dunn
- Travelopia
