Luxury Travel Market Size, Share & Trends Analysis Report By Tour (Safari & Adventure, Culinary Travel & Shopping), By Age Group (Millennial, Baby Boomers), By Region, And Segment Forecasts, 2023 - 2030

Luxury Travel Market Size & Trends

The global luxury travel market size was estimated at USD 1.28 trillion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 7.7% from 2023 to 2030. Increasing spending by elite travelers to visit unexplored destinations and gain new experiences is driving the market growth. In addition, the growing trend of micro trips and rapidly expanding tourism sector across the globe have also been boosting the market growth. Personalized services, reliable transport, exclusivity, and positive & professional interaction with staff set 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, & 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 health and safety concerns are driving the market growth. 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. With the growing population of high net-worth individuals (HNWIs) across the globe, this group will be one of the most crucial travel groups that is expected to propel market growth over the forecast period and 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 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 growth of the customized & private luxury travel segment over the forecast period.

Tour Insights

The safari and adventure segment accounted for the largest share of around 34.8% in 2022 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 are typically 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.

The culinary travel and shopping segment is expected to register the fastest CAGR of 8.7% over the forecast period. The primary purpose of culinary travel is to experience the unique foods and drinks of a particular region or area and understand the culture. The growing popularity of cooking programs 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.

Age-group Insights

On the basis of age group, the market has been further segmented into baby boomers, Generation X, millennials, and silver hair. The baby boomers segment dominated the global market with a share of over 39.8% in 2022. Baby boomers have the time and budget to travel and visit multiple adventurous destinations, which is accelerating the segment 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.

The millennial age group segment is estimated to grow at the fastest CAGR of 8.3% over the forecast period. Millennials have a mindset for luxury and its meaningful consumption. They tend to be more independent in their religious and political views, more entrepreneurial, better educated, and more travel-oriented than any other generation. This may fuel the growth of this segment over the forecast period.

Regional Insights

Europe emerged as the largest regional market share with over 35.4% in 2022. Rising travel connectivity, coupled with rapid penetration of high-speed internet, has made even the most remote places in Europe more accessible to the luxury traveler. Safari and adventure travel are emerging trends 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. Asia Pacific is expected to witness the fastest CAGR of 8.4% from 2023 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 the tourism sector in Asia Pacific.

Key Companies & Market Share Insights

The market is characterized by the presence of a few established players and new entrants. Many big players are increasing their focus on the popular trends in the industry. Players in the market diversify their service offerings to maintain market share. For instance:

• 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 market in both the UK and the U.S., expediting its initiative to establish a collection of luxury travel brands

Luxury Travel Market Report Scope

Global Luxury Travel Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the luxury travel market report on the basis of tour, age-group, and region:

• Tour Outlook (Revenue, USD Billion, 2017 - 2030)

  • Customized & Private Vacations

  • Safari & Adventure

  • Cruises, Yachting & Small Ship Expeditions

  • Celebration Journeys

  • Culinary Travel & Shopping

  • Others

• Age Group Outlook (Revenue, USD Billion, 2017 - 2030)

  • Millennial (21 - 30)

  • Generation X (31 - 40)

  • Baby Boomers (41 - 60)

  • Silver Hair (60 +)

• Regional Outlook (Revenue, USD Billion, 2017 - 2030)

  • North America

    • U.S.

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa (MEA)

    • South Africa