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

Luxury Travel Market Size & Trends

The global luxury travel market size was estimated at USD 1.38 trillion in 2023 and is expected to grow at a CAGR of 7.9% from 2024 to 2030. 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.

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.

Market Concentration & Characteristics

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.

The level of collaborations and partnerships in the market is moderately high. In February 2024, Ten Lifestyle Group plc (AIM: TENG) announced a new partnership with Global Travel Collection (GTC), the world's largest collection of international luxury travel agencies. Through this collaboration, Ten will provide its luxury lifestyle expertise to GTC's 1,300 travel advisors, enhancing the premium travel services offered to leisure travelers, corporate executives, and the entertainment industry.

Age Group Insights

Luxury travelers in the age group of 41-60 years contributed to the global market with a revenue share of 42.67% in 2023. These consumers have the time, budget, and desire to travel and visit multiple adventurous destinations due to no-child responsibilities, and a wide bucket list ranging from taking a world cruise, a long vacation on a luxury cruise liner, exotic ports, enjoying an upscale safari destination is accelerating the market growth. According to AARP 2021 Travel Trends’, In the U.S., approximately 54% of baby boomers planned to travel in 2021, on which they planned to spend an average of USD 6,691, which is about 20% to 50% more than their Gen X or millennial counterparts.

Market revenue from luxury travelers in the age group of 21-30 years is expected to grow at the CAGR of 7.9% over the forecast period from 2024 to 2030. Millennials have a mindset for luxury and its meaningful consumption. They tend to be more independent in their religious and political views, more entrepreneurial, less likely to be married, distrustful of authority, better educated, and more travel-oriented than any other generation. This may fuel the market growth over the forecast period.

Tour Insights

The safari and adventure segment accounted for a revenue share of around 34.03% in 2023 as luxury travelers are seeking more depth to understand the local culture, sense of adventure, nature, historical infrastructure, and less crowded environment. Luxury tents, commonly known as "glamping" accommodations, are primarily employed for group experiences during safaris or outdoor-focused tours. These tents typically come equipped with modern amenities, including private bathrooms and showers, and frequently feature elegant teak floorings. Luxury safari tours generally also have an on-site personal guide available for the duration of each tour.

For instance, MILIMA, one of the most popular deluxe lodges in South Africa, provides various options such as luxury tents, manor houses, and villas with various benefits, which sets a standard bar for its competitors as well as new entrants in the market.

Culinary travel and shopping is the fastest-growing segment with a CAGR of 9.3% over the forecast period. The primary purpose of culinary travel is to experience the unique food and drink of a particular region or area and understand the culture. The growing popularity of cooking programs on television and online influences people to travel abroad and experience local cuisines. According to the Godrej Food Trends Report 2022, in the coming years, around 90% of people in India are predicted to be interested in travel related to culinary experiences and cuisines. This trend is driven by the growing curiosity among people to taste new flavors suggested by food bloggers, health professionals, chefs on TV shows, and many other trends that emerged during the COVID-19 pandemic.

Regional Insights

The luxury travel market in North America accounted for a global revenue share of 30.11% in 2023. The region boasts a diverse range of luxury destinations and high-end accommodations that attract affluent travelers from around the world. The strong economy and stable environment in North America also contribute to its significant share of the global market.

U.S. Luxury Travel Market Trends

The luxury travel market in the U.S. is expected to grow at a CAGR of 7.6% from 2024 to 2030. The U.S. is a popular luxury travel destination with diverse range of luxury experiences, from high-end shopping in cities like New York and Los Angeles to exclusive resorts in scenic locations like Hawaii and Colorado. The country boasts world-class attractions such as luxury hotels, fine dining restaurants, iconic landmarks, and cultural experiences that appeal to affluent travelers seeking unique and memorable experiences. Moreover, the country's advanced infrastructure, well-developed transportation networks, and safety standards make it a convenient and secure destination for luxury travelers.

Europe Luxury Travel Market Trends

Europe accounted for a revenue share of 34.50% in 2023. Rising travel connectivity, coupled with rapid penetration of high-speed internet, has made even the most remote places in Europe accessible to the luxury travelers. Safari and adventure travel are emerging trends in luxury travel market in Europe. Europe has become a key destination for those passionate about birdwatching. According to a report published by the CBI Ministry of Foreign Affairs in January 2021, the birdwatching tourism sector has experienced rapid growth, primarily driven by European tourists. A significant portion, around 20%, of European travelers engaged in wildlife tourism also express interest in birdwatching activities. Birdwatching has emerged as a popular hobby among Europeans.

Asia Pacific Luxury Travel Market Trends

The Asia Pacific luxury travel market is expected to witness a CAGR of 8.9% from 2024 to 2030. The contribution of travel & tourism-one of the most important revenue-generating sectors in Asia Pacific-to the region’s GDP grew by 7.5% from 2021 to 2022, according to the World Travel & Tourism Council. Increased economic growth, rising disposable income and free time, growing political stability, and a rising focus on active tourism promotions are among the key factors contributing to the rapid expansion of tourism in Asia Pacific.

Key Luxury Travel Company Insights

The industry is characterized by the presence of global companies and emerging players. The major players of the industry emphasize product innovation & differentiation and unique designs aligned with the changing consumer trends. These players have extensive distribution networks worldwide, which enable them to reach a wide customer base and expand into emerging markets. The emerging companies, on the other hand, are focused on niche markets, specialized product portfolios, and fresh designs to improve their visibility in the market.

• TUI Group. is one of the largest players with a complete portfolio in the safari market. The company's operations are divided into several categories, including markets and airlines, holiday experiences, and other business sectors. The company has 1,600 travel agencies, 6 airlines with around 150 aircraft, 18 cruise liners, and 380 hotels & resorts. Its integrated offerings provide 27 million customers with an unmatched holiday experience in 180 countries.

Recent Developments

• In June 2023, Lindblad Expeditions collaborated with FOOD & WINE magazine to launch an eight-day journey through the Pacific Northwest along the Columbia and Snake Rivers. During this expedition, guests explored the region's historical, agricultural, and natural aspects and savored the local cuisine and wines.

• In February 2023, Australia-based Flight Centre Travel Group signed an agreement to purchase Scott Dunn Ltd. for approximately USD 149 million. Flight Centre Travel Group is the proprietor of leisure and corporate travel enterprises in over 20 countries. This acquisition serves as the company's strategic entry into the luxury market in both the UK and the U.S., expediting its initiative to establish a collection of luxury travel brands.

• In September 2022, Cox & Kings Ltd. unveiled its 2023-24 Worldwide Brochure, which included six new tours. Additional tours to France, Turkey, India, Pakistan, and Jerusalem were introduced in the brochure. The 208-page brochure covers departures till the end of 2024 and all the trips are capped at 14 guests per group.

Luxury Travel Market Report Scope

Global Luxury Travel Market Report Segmentation

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the latest trends and opportunities in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global luxury travel market report based on tour, age group, and region:

• Tour Outlook (Revenue, USD Billion, 2018 - 2030)

  • Customized & Private Vacations

  • Safari & Adventure

  • Cruises, Yachting & Small Ship Expeditions

  • Celebration Journeys

  • Culinary Travel & Shopping

  • Luxury Trains

  • Others

• Age Group Outlook (Revenue, USD Billion, 2018 - 2030)

  • 21-30 Years

  • 31-40 Years

  • 41-60 Years

  • 60 And Above

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

    • Austria

    • Belgium

    • Czech Republic

    • Denmark

    • Hungary

    • Netherlands

    • Norway

    • Portugal

    • Sweden

    • Switzerland

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • Uzbekistan

    • Malaysia

    • Singapore

    • Thailand

    • Vietnam

    • New Zealand

  • Central & South America

    • Brazil

    • Peru

    • Chile

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE

    • Turkey