Top Facts You Didn’t Know About Luxury Travel market & Impact of COVID-19Posted by Mrudula Anil Karmarkar on December 21st, 2023 San Francisco, 21 December 2023: The ReportLuxury Travel MarketSize, Share & Trends Analysis Report By Tour (Customized & Private Vacations, Safari & Adventure), By Age Group (Millennial, Baby Boomers), By Region, And Segment Forecasts, 2024 - 2030 The global luxury travel market size is expected to reach USD 2.32 trillion by 2030, registering a CAGR of 6.7% from 2024 to 2030, according to a new report by Grand View Research, Inc. The growing desire to escape the stress, hustle-bustle, and routine of everyday life has attracted travelers. Moreover, the increasing life expectancy of people around the world and improved health conditions even in old age are encouraging more and more consumers to enjoy an active lifestyle. Moreover, the trend of micro trips is expected to boost industry growth. Tourists are visiting more travel places in shorter time periods. To stay and spend quality time and create memories during short time frames in a unique and remarkable type of accommodation is expected to become trendy in the forecast period. The demand for luxury travel focused on wellness continues to grow, with travelers actively seeking experiences, itineraries, and products tailored to health, fitness, nutrition, appearance, sleep, and mindfulness. According to a 2021 American Express survey, 76% of respondents expressed a desire to allocate more of their travel budget toward improving their overall well-being, while 55% indicated a willingness to invest extra in wellness activities for future vacations. Although many spas and health retreats faced closures during the pandemic, the Global Wellness Institute anticipates a robust recovery, projecting an annual growth rate of 17% and an estimated market value of USD 150 billion by 2030. In terms of luxury cultural tourism, festivals have become a major focus, and notions of authenticity have become spots of attraction in the festivals. Tourists seek an authentic experience of festivals and associated cultural rituals performed by locals and their traditional practices. For instance, in August 2022, the Indian government announced new waterways between Mathura, Vrindavan, and Agra to promote religious tourism. Under this project, the cruises to Gokul, Vrindavan, and Mathura will be connected by waterways on the Yamuna River at affordable rates. Vrindavan and Mathura havehave a rich cultural heritage of fairs and festivals, to name a few: Holi, Charkula dance, Raasleela, Latthmar Holikotsav, Yamuna Janmotsav, Janmashtami Mela, and many more. Social connectivity is another emerging trend among luxury travelers to connect and experience different societies and cultures. For example, G Adventures (formerly known as Gap Adventures) is a social enterprise and small-group adventure travel company that brings travelers closer to society and its culture. G Adventures is capitalizing on the social connectivity trend by providing an opportunity for local communities to connect and socialize with travelers seeking cultural exploration. Companies in the industry are focusing on strategies, such as mergers and acquisitions, to gain higher industry share and increase their service footprint. In June 2021, Inspirato LLC, the innovative luxury travel subscription brand, and Thayer Ventures Acquisition Corp., a publicly traded special purpose acquisition company, announced that they have entered into a definitive merger agreement that will result in Inspirato becoming a publicly listed company. This merger enabled the company to increase and broaden its service capabilities and bolster its package offerings. Request sample report of Luxury Travel Market@https://www.grandviewresearch.com/industry-analysis/luxury-travel-market/request/rs1 Increasing spending by elite travelers to visit unexplored destinations and gain new experiences is driving the market. In addition, the growing trend of micro trips and the rapidly expanding tourism sector across the globe have been boosting market growth. Personalized services, reliable transport, exclusivity, and positive & professional interaction with staff are what set the benchmark for luxury travel. Traveling around the world is being greatly influenced by factors, such as growing political stability, improving attitudes toward ethnicity, sexual orientation, and race, and more accommodating visa regulations. Global Luxury Travel Market Report Highlights
Travelers are looking to create their own unique experiences through flexible itineraries that combine entertainment as well as relaxation. 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 market. Customized and private tours let people travel at their own pace. 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 also supports market growth as this group will be one of the most crucial travel groups that will help bring the industry on track. 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. Travelers have the opportunity to select from a varied selection of comprehensive journeys that blend exclusive access, unique experiences, and luxurious accommodations in coveted global destinations. Furthermore, 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- & post-cruise options, specialized guide services, private transfers, and 24-hour client support across Croatia. Such initiatives are expected to propel market growth. Tour Insights The safari and adventure segment accounted for the largest share of around 34.2% 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. Luxury Travel Market Report Scope
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 industry. Culinary travel and shopping is expected to be the fastest-growing segment with a CAGR of 7.6% from 2024 to 2030. The primary purpose of culinary travel is to experience the unique foods and beverages of a particular region or area and understand the culture. The growing popularity of cooking programs on television and online platforms 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. Access Press Release of Luxury Travel Market@https://www.grandviewresearch.com/press-release/global-luxury-travel-market The industry is characterized by the presence of global companies and emerging players. Key players 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. The operations of TUI Group, one of the largest players with a complete portfolio in the safari market, 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. List of Key Players in the Luxury Travel Market
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