Traveling luxuriously has become an indulgence for high net worth individuals and wealthy families. Luxury travel incorporates exclusive amenities and tailored itineraries to create memorable experiences for travelers. Luxury travel often includes private jets, luxury cruises, exclusive tours to popular destinations in exotic locales as well as all-inclusive resort stays. The focus is on personalized service, intriguing destinations and activities and superior accommodations. The global luxury travel market has been witnessing substantial growth in bookings from high net worth individuals and wealthy families looking for unique experiences while traveling.
The global Luxury Travel Market is estimated to be valued at US$ 260.23 Mn in 2023 and is expected to exhibit a CAGR of 7.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increasing number of high net worth individuals globally and their rising spending power has been a key growth driver in the luxury travel market. With the growing global affluent population exceeding USD net worth of US$70 trillion collectively, the demand for exclusive and experiential forms of travel has substantially increased. Luxury travel operators are increasingly curating bespoke itineraries and experiences tailored to the interests and preferences of wealthy travelers including exclusive toursled by expert guides, luxury cruise experiences, private jet travel and personalized wellness retreats amidst scenic locales. Sustainability has also emerged as a key trend with a significant portion of wealthy travelers seeking out eco-friendly and responsible luxury properties and experiences. Customized virtual and hybrid travel experiences that blend physical and digital engagement are also gaining traction with luxury travelers in the current market scenario.
Threat of new entrants: The luxury travel market has high setup costs owing to the high standard amenities and services required. This acts as a barrier for new companies.
Bargaining power of buyers: Buyers have moderate to high bargaining power as there are many established luxury travel operators in the market providing similar services. Buyers can negotiate on prices and benefits.
Bargaining power of suppliers: Luxury travel operators have a diverse supplier base providing services like transportation, lodging, activities etc. This reduces suppliers’ bargaining power.
Threat of new substitutes: There are few direct substitutes to luxury travel. Alternatives like standard resort stays or cruises pose low threat as luxury travel offers unique experiences.
Competitive rivalry: The luxury travel market has strong competition among major operators. Companies focus on maintaining high service quality and customer satisfaction to remain competitive.
The Global Luxury Travel Market Size is expected to witness high growth at a CAGR of 7.6% during the forecast period. The global Luxury Travel Market is estimated to be valued at US$ 260.23 Mn in 2023 and is expected to exhibit a CAGR of 7.6% over the forecast period 2023 to 2030.
North America currently dominates the luxury travel market owing to strong demand for high-end vacations in countries like the US and Canada. Europe is another major regional market for luxury travel driven by factors like growing affluence and aged population seeking unique experiences.
Key players operating in the luxury travel market 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. Major players are focused on expanding their service offerings and global presence through mergers and acquisitions to gain market share in the highly competitive luxury travel industry.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it