The luxury travel market is subject to witness a substantial growth over the forecast period due to the rising inclination towards unique & exotic holiday experiences, increasing personal disposable income in both developed and developing economies across the globe, and growing middle and upper middle class population globally.
Factors responsible for robust market growth include substantial impact of social media on luxury travel market, in the last few years.
Additionally, vast consumer base and emergence of new destinations along with improved service standards are expected to drive the growth of luxury travel market in the upcoming years. Globally, the luxury travel market is predicted to grow at higher CAGR of 6.83% during the period 2017-2021, providing numerous opportunities for market players to invest in research and development of the luxury travel industry.
With lowered prices of luxury holiday packages and growing demand for luxurious features and finest quality of services, are expected to boost the growth of the luxury travel market in the upcoming years. Additionally, increasing personal expenditure in developed and developing economies across the globe has led to substantial increase in the number of travelers opting for luxury travel, in the recent years.
The recent technological advancement such as early adoption of IoT and RFID technology along with necessary modification and upgradation in the existing services and infrastructure, thus providing unique experience for the customers are predicted to drive market growth over the forecast period. Developing different methods to improve and maintain customer relations by offering them with high-class hospitality services is anticipated to amplify overall market value of luxury travel.
Establishment of luxury travel & hotel chains by prominent industry players coupled with significant investment to improve existing luxury services, and adoption of high-class accommodations for corporate events and holiday trips is further driving market growth, in the recent years. The recent research & development activities to improve existing services coupled with emergence of new holiday destination are predicted to offer lucrative growth opportunities for market players in the near future.
Increasing number of travelers are opting for luxurious holiday packages that includes required comfort features and finest quality of services, while cost associated with such packages have become a secondary consideration. Many organizations are opting for modification and upgradation in the services and infrastructure to provide full-filling experience to the customers, and to sustain themselves in the vast competitive market. Formulating various methodologies to engage and maintain customer relations by offering the high degree of hospitality is one of the key factors driving the market growth.
The luxury travel market is broadly categorized six major types based on type of travel such as customized holiday travels, adventure & safari, cruise vacations, small-scale vacations, celebration & special events, and culinary travel & shopping. The adventure & safari is considered as one of the fastest growing segment in the luxury travel market with substantial revenue generation in the last couple of years. Growing popularity of the adventure & safari market segment is attributed to increase in the number of independent travelers.
The luxury travel market is divided into regional market segment such as North America, Europe, Asia-Pacific, Latin America and Africa. North America has shown major growth in recent years owing to the increasing upgradation in existing services and existence leading industry players in the region. Asia-Pacific region is predicted to hold major market share in the luxury travel market with massive growth in forecast period. Countries such as India, China, Indonesia and Japan are leading the Asia-Pacific’s market with increase in number of the travelers each year and rise in the investment by leading industry players due to potential market opportunities.
European region has also shown significant growth in the luxury travel market during recent years owing to the large number of initiatives undertaken by local governments to promote tourism in the region. The key players in the luxury hotel market are Abercrombie & Kent Ltd., Cox & Kings Ltd., Macato Safaris Ltd., Ker & Downey LLC, Tauck Co., Thomas Cook Group plc, Scott Dunn Ltd., Kensington Tours Ltd., Butterfield & Robinson Inc., TUI Group AG, Backroads Ltd., Lindblad Expeditions, and Exodus travels Limited.
Request the report here.
