April 21, 2024
Luxury Travel Market

Luxury Travel Market is Anticipated to Witness High Growth Owing to Increasing Disposable Income

The luxury travel market involves travel services and products that provide luxurious travelling experience to customers. It includes services like private jet charter, luxury cruise trips, bespoke luxury vacation packages, luxury train journeys and rental of luxury vehicles. The need for luxury travel has increased owing to rising affluence, growing influence of social media and increasing preference for unique and once-in-a-lifetime travel experiences amongst consumers.

The Global luxury travel Market is estimated to be valued at US$ 299.79 Mn in 2024 and is expected to exhibit a CAGR of 7.6% over the forecast period 2024 to 2030.

Key Takeaways
Key players operating in the Global Luxury Travel Market Demand are Zoetis Inc., Elanco Animal Health Incorporated, Boehringer Ingelheim International GmbH, Virbac, Vetoquinol S.A., Dechra Pharmaceuticals PLC, Bayer AG, Ceva Sante Animale, Kindred Biosciences, Inc., IDEXX Laboratories, Inc. Zoetis Inc. holds a leading market share owing to its strong product portfolio and global presence. Elanco Animal Health Incorporated and Boehringer Ingelheim International GmbH also have a sizable market share due to their worldwide operations and wide range of pet care solutions.

The luxury travel industry offers ample opportunities for service providers to capitalize on the increasing spending power of global high net worth individuals. The rising trend of experiential travel and unique nature escapes is boosting demand for tailored luxury tours focusing on wildlife adventures, farm stays, culinary experiences etc. Growing development of luxury destinations particularly in Asia Pacific, Latin America, Middle East and Africa is also creating new revenue streams for luxury travel companies and operators. Major players are expanding their global footprints through mergers, acquisitions and collaborations to get access to new markets and locations.

Market Drivers and Restrains

Increasing disposable income levels along with growth of global HNI population are major growth drivers for the luxury travel market. Consumers today have more spending power and are willing to splurge on exclusive and one of its kind travel experiences. Moreover, the rising influence of social media is encouraging affluent travelers to opt for unique and share-worthy luxury vacations. However, premium pricing of luxury travel packages and services poses a major challenge for wider consumer acceptance and market growth. Exchange rate fluctuations can also impact the pricing and demand of international luxury vacations and tours to an extent. Seasonal variations continue to be a bottleneck for revenue generation and stable business growth of luxury travel operators.

Segment Analysis
The personal travel segment dominates the luxury travel market owing to the rising affluent population and their increasing spending power on personal leisure trips. This segment has witnessed a rise in spend on experiences, wellness, and unique trips rather than material assets. The group and corporate travel segment is also growing due to increasing travel and meetings expenditure by businesses for brand building and client engagements. Growing MICE tourism is driving the demand for luxury travel experiences and services under this segment.

Global Analysis
In terms of regions, North America dominates the luxury travel market led by the US due to the rising high net worth individuals opting for premium experiences. The Asia Pacific region is witnessing the fastest growth on account of rapid economic development in major countries like China and India resulting in growing affluence. China, in particular, is emerging as a key inbound and outbound luxury travel market. Europe is also a major regional market driven by the large number of international tourists visiting destinations across Western and Northern Europe for myriad experiences and attractions. Improving infrastructure is encouraging travel within Southeast Asian countries and Africa.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it