The global luxury travel market is a thriving sector of the tourism industry that caters to affluent travelers seeking exclusive, premium experiences. This market includes high-end accommodations, unique and personalized services, and tailored travel experiences that prioritize comfort, exclusivity, and exceptional customer service.

According to the Allied Market Research report, the global luxury travel market garnered $891.1 billion in 2018, and is expected to reach $1,614.6 billion by 2026, growing at a CAGR of 7.9% from 2019 to 2026.

Prime determinants of the market regarding the luxury travel market

The rise in inclination toward exotic holiday experiences, the surge in middle & upper middle-class spending, the trend of online booking, and the increase in the impact of the travel industry drive the growth of the global luxury travel market. However, varying socio-economic situations and the impact of natural disasters hinder market growth. On the other hand, demand for enhanced service standards and the emergence of new destinations create lucrative opportunities in the industry.

Adventure and safari segment to maintain its leadership status by 2026

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 an 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 a surge in outbound travel, eagerness to gain unique dining experiences in various countries, and organization of many festivals and events.

Millennial segment to grow at the highest growth rate

Based on age group, the millennial segment would grow at the largest rate with a CAGR of 9.5% from 2019 to 2026, owing to the 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 to grow the fastest

North America is estimated to register the fastest growth rate with a CAGR of 11.4% from 2019 to 2026, owing to an increase in international spending on travel, the availability of ranches and spa retreats to private islands, and the 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 a preference for customized and private vacations and cruise/ship expeditions and a surge in several travelers in countries such as Greece, Spain, and Turkey.

Market Players Grabbing Largest Pie

• • Abercrombie & Kent USA, LLC
  • Cox & Kings Ltd.
  • Travcoa
  • Micato Safaris
  • Ker & Downey
  • Tauck
  • Thomas Cook Group PLC
  • Scott Dunn Ltd.
  • Kensington Tours
  • Butterfield & Robinson Inc.

Conclusion

The global luxury travel market is expected to continue its upward trajectory, driven by demand for personalized, eco-conscious, and immersive experiences. As more affluent travelers seek unique and high-end offerings, travel companies need to innovate and adapt to the latest trends to stay competitive.

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