Research Dive in its latest published report estimates that the Global Luxury Travel Market will generate $1,369,103.8 million and exhibit a CAGR of 8.8% from 2021 to 2028.
Luxury travel offers the best of the best: intimate experiences, personalized services, gourmet meals, and beautiful surroundings that together promise a maximum of pleasure and a minimum of stress.
Luxury Travel Market Dynamics
The demand for exotic holidays by people for unique travel experience is increasing rapidly. A luxury travel is a break that people take to relax and these holidays are free from worries that helps in reducing stress. These are the major factors predicted to foster the growth of the global luxury travel market during the analysis period. Besides, the ongoing technological advancements in luxury travel provide convenience of booking, offers best deal and discounts, provides facility to see all accommodation options along with contactless payment options are anticipated to generate massive growth opportunities for the global market by 2028. However, the outbreak of natural disasters or diseases such as the COVID-19 virus leading to socio-economic disruptions are factors expected to restrict the market growth in the estimated timeframe.
Impact of COVID-19 Pandemic on the Luxury Travel Market
The COVID-19 outbreak has negatively impacted the global luxury travel market during the pandemic. The decline in the growth rate of the market is majorly attributed to social distancing measures, travel restrictions, and unprecedented lockdowns to curb the spread of the life-threatening coronavirus. Besides, many tourism companies and tourism-related sectors such as lodging, catering, transportation, and retail have shut down their operations also faced severe revenue losses. However, various companies are helping society with their technological advancements and initiatives to recover from the chaotic situation.
Key Segment Findings of the Market:
The research report segments the global luxury travel market into tour type, age group, traveler type, and region.
- Based on tour type, the cruise/ship expedition sub-segment is projected to grow at the fastest rate and generate a revenue of $115,479.0 million by 2028. This is majorly owing to the increasing popularity of cruise/ship expedition as it offers the soft adventure experience, and allows travelers to explore the places that can’t be touched by land.
- Based on age group, the baby boomer sub-segment valued for $180,031.3 million in 2020 and is projected to garner dominant market share in the global industry by 2028. This is mainly because baby boomers can travel and opt for longer holidays due to their flexible schedules.
- Based on traveler type, the absolute luxury sub-segment accounted for $253,468.1 million in 2020 and is projected to generate majority of market share over the forecast period. This is majorly owing to excellent hotels, priority check-ins, food services, on-demand service, and enhanced entertainments such as night clubbing and cruise dinner.
- Based on region, the Asia Pacific luxury travel market is expected to grow at the fastest rate and reach up to $447,151.1 million by 2028. This growth is majorly due to economic growth, rising popularity for adventure, and the desire to explore various places among the young population.
Top 10 Key Players of Luxury Travel Market
The prominent players of the global luxury travel market include:
- TUI AG
- Abercrombie & Kent USA, LLC
- Travcoa Corporation
- Cox & Kings Ltd.
- Meredith Corporation, LLC
- Butterfield & Robinson Inc.
- Thomas Cook Ltd.
- Micato Safaris
- Kensington Tours Ltd.
- Scott Dunn Ltd.
These players are focusing on mergers, collaborations, product development, and launches to gain a competitive in the global market.
In May 2021, Almosafer Travel Group of Saudi Arabia unveiled a new luxury travel concierge service that targets discerning Saudis that are looking to explore far-flung destinations. The Almosafer Concierge is offered to a ‘members only’ group of customers that are eligible for the service to reap its benefits, from luxury hotels and unique experiences to exclusive value adds.
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