Luxury Travel market is anticipated to grow at a CAGR of 7.2% during the forecast period (2024-2031). Journey that is very expensive or lavish in character and often offers a unique experience and high degree of comfort. Travelers are looking to create their own unique experiences through flexible itineraries that combine entertainment as well as relaxation.

Market Dynamics

Growth of  Disposable Income

The growth in disposable income among the wealthy population has a direct influence on the luxury travel sector. People have more money to spend, thus they are more likely to engage in luxury vacation experiences.

Growth of online booking platforms

Globally, The internet boom, convenience, competitive deals, vast choices, and mobile tech advancements are fueling the online travel booking market's global dominance. Platforms offer a one-stop shop for trip planning, saving time and offering personalized travel experiences for all.For instance in October 2023 Mastercard and Agoda expand partnership to drive innovation and efficiency in B2B payments for the travel industry which leads to to make payment during Travel conviently.

Market Segmentation

Our in-depth analysis of the global Luxury Travel market includes the following segments by Travel tour,By Age:

• Based on type, the market is sub-segmented into Customized and Private Vacation, Safari and Adventure , Cruise Yachting and Small ShipsExpenditions , Celebration Journey and Culinary Travel.

• Based on Age, the market is bifurcated intoMillenial ,GenrationZ , Baby boomers.

• Luxury Travel Tour is Projected to Emerge as the Largest Segment

• Based on the luxury tour Travel, the global Luxury Travel market is sub-segmented intoCustomized and Private Vacation, Safari and Adventure , Cruise Yachting and Small Ships Expenditions , Celebration Journey and Culinary Travel.Among these, Safari and Adventure sub-segment is expected to hold the largest share of the market. The primary factor supporting the segment's growth due to trend among travelers to seek more immersive & exciting experiences. Adventure safaris offer activities such as trekking, canoeing, mountain biking, and even diving with sharks, which appeal to adventure enthusiasts.

Millenialand  GenrationZ Sub-segment to Hold a Considerable Market Share

Younger travelers, Generation Z and Millennials, demand individualized luxury experiences and rely significantly on travel agents. They prefer internet booking but also need advisers for real-time itinerary management. Peace of mind, problem solving, and handling intricate travel logistics are all compelling reasons to use agents.Instance On January 2023 Gen Z and Millennials, who demand individualized luxury travel, rely significantly on travel agencies (96% use) for advice while still preferring internet booking (64% use OTAs). They enjoy the peace of mind, problem-solving, and itinerary management provided by agents, especially given their increased security concerns (82%), and preference for one point payment (60%). 

Regional Outlook

The globalLuxury Travelmarket is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America). 

European countries to invest in Luxury Travel 

• Germany, France and the UK are leading markets by tour in luxury tourism. 

• Hyatt announces worldwide expansion of premium offering. The growth, which includes famous brands such as Park Hyatt and Thompson Hotels, meets the increasing demands of travel in the United Kingdom, Mexico, and Malaysia, as well as Thompson Hotels' development in Europe (Austria and Italy).

Global Luxury Travel Market Growth by Region 2024-2031

Europe Holds Major Market Share

Europe is a major source market for the luxury tourism segment. Luxury tourism is more than just staying in five-star hotels.Global outbound tourism continues to recover well, reaching 84% of pre-pandemic levels by the end of July 2023. Germany and the UK are the largest European markets,It is also about exciting travel experiences in new destinations. Younger wealthy consumers will drive growth in this segment because they put experiences before material possessions. Germany, France and the UK are leading markets for luxury tourism. Bucket-list travel and meaningful experiences are important trends to be aware of in the sector.

Apart from this, there is an increase in the number of travellersin Europe region which is further propelling the regional market growth.In February 2022, the Commission approved its 'Transition Pathway for Tourism' strategy. In light of the COVID-19 pandemic, the new EU industrial policy emphasised the importance of strengthening tourist sector resilience and accelerating digital and green transformations. The transition route highlighted 27 areas for initiatives to support the green and digital transitions, as well as to strengthen the EU tourist industry. In response to this strategy, the Council approved the 'EU agenda for tourism 2030' in December 2022. The agenda was divided into five major areas: green and digital transitions, resilience and inclusiveness, skills and assistance, and governance and policy-enabling framework, each with its own set of activities

Market Players Outlook

*Note: Major Players Sorted in No Particular Order.

The major companies serving the global Luxury Travelmarket includeAbsolute Travel and Tours Ltd., Butterfield and Robinson Inc., Classic Journeys LLC, Exodus Travels Ltd., G Adventures, Among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers, and acquisitions to stay competitive in the market.For instance on febuary 2024 Cheval Collection, recognized for its luxurious apartments in prime locations, has partnered with Nest Seekers International to increase its presence in the US market. Nest Seekers has a strong digital presence, with 3 million yearly visitors and a mobile app, making them an ideal partner for Cheval Collection's 803 apartments in London, Edinburgh, and Dubai, with more locations launching in Glasgow soon. 

The Report Covers

• Market value data analysis of 2023and forecast to 2031.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global Luxury Travelmarket. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.