The global Luxury Travel Market is estimated to be valued at US$ 260.23 Mn or Mn in 2023 and is expected to exhibit a CAGR of 7.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The luxury travel market comprises of travel and tourism services that provide exclusive experience to travelers at high costs. This includes luxury cruises, private jet tours, exotic destination tours, and high-end accommodation facilities among other luxury services. Luxury travel provides unique experiences to travelers by focusing on impeccable customer services and one-of-a-kind offerings. Some of the common advantages of luxury travel includes VIP access to attractions, personal home away from home experience with amenities like private chefs, exclusive destination sites, and curated experiences ideal for leisure and business travelers seeking premium services.
Market key trends:
The luxury travel market is witnessing increasing demand driven by expanding global middle and affluent class with higher disposable incomes especially in emerging countries like China, India and Brazil. Moreover, the ongoing trend of experience seeking among modern travelers rather than material possessions is fueling luxury travel expenditures. Sustainable and wellness-focused luxury trips have also gained traction post COVID. Customized and specialized luxury trips are being increasingly popular to fulfill unique travel goals of modern luxury travelers. Digital technologies are further enhancing luxury travel experiences through virtual/augmented reality, AI and personalized concierge services.
Porter's Analysis
Threat of new entrants: The luxury travel market requires high initial investments and has stringent regulations which act as a deterrent for new players. However, the high growth prospects attract some new entrants.
Bargaining power of buyers: The bargaining power of buyers is moderate as there are many players in the market providing differentiated luxury travel experiences. Switching costs are also low.
Bargaining power of suppliers: Tourism boards and destinations have some influence over prices as they control access to destinations. However, established luxury travel companies can negotiate better terms.
Threat of new substitutes: The threat is moderate as luxury travel has close substitutes like luxury cruises and resort stays. However, customized experiences offered by luxury tour operators provide some product differentiation.
Competitive rivalry: The market sees intense competition among existing luxury travel companies to attract high-net-worth customers through superior service quality, unique experiences, and building brand loyalty.
Key Takeaways
Global Luxury Travel Market Demand is expected to witness high growth, exhibiting CAGR of 7.8% over the forecast period 2023 to 2030, due to increasing high disposable incomes and changing travel patterns among wealthy tourists. The market size for 2023 is estimated to reach US$ 260.23 Mn.
North America accounts for the largest share in the luxury travel market currently owing to a large high-net-worth population in countries like the US. However, Asia Pacific is projected to be the fastest growing regional market led by luxury travel growth in China and Southeast Asia.
Key players operating in the luxury travel market are Abercrombie & Kent USA, Absolute Travel, Inspiring Travel Company, TCS World Travel, TÜ ELITE, Cox & Kings Ltd., Travcoa, Micato Safaris, Scott Dunn Ltd., Kensington Tours Ltd., and Butterfield & Robinson Inc. Companies are differentiating through unique and authentic experiences along with better services to gain customers.
Read More- https://www.ukwebwire.com/luxury-travel-market-growth-analysis-and-outlook/
