Global Luxury Travel Market
The global luxury travel market is expected to witness significant growth over the forecast period, owing to increasing number of travelers worldwide. According to the World Travel and Tourism Council, the worldwide investment on luxury travel and tourism was US$ 4,233.3 billion in 2017, which is estimated to reach US$ 6,605.3 billion by 2028.
Moreover, increasing disposable income, especially in emerging economies, is a major driver for growth of the luxury travel market during the forecast period. According to the Organization for Economic Cooperation and Development, the global middle class populace is projected to increase from 1.8 billion in 2009 to 4.9 billion by 2030. For instance, disposable income in China increased to US$ 5,278.3 in 2017 from US$ 3562.2 in 2012. Moreover, consumer spending in India increased to US$ 270.48 billion in 2018, from US$ 63.67 billion in 2004. Similarly, consumer spending in the U.S. increased from US$ 11,971.9 billion in 2015 to US$ 12,847.82 billion in 2018.
Major players operating in the global luxury travel market include, 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., Butterfield & Robinson Inc. and others.
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Furthermore, increasing adoption of digital technology is also expected to boost growth of the market. Increasing use of internet and high presence on people on social media platforms also aids in the market growth. Players in the market are focused on capitalizing the social media presence to expand their consumer base and to strengthen consumer relation. Use of internet allows to compare brands and offers several choices. Moreover, the influence of user-generated travel content is more influential over conventional advertising. The appeal for travel storytelling has rapidly increased, owing to platforms such as Instagram and various blogging sites.
Therefore, increasing use of internet and social platforms is expected to contribute to growth of the luxury travel market during the forecast period. For instance, according to the India Brand Equity Foundation (IBEF), India’s internet economy was valued at US$ 125 billion in 2017, and is expected to increase to US$ 250 billion by 2020. Moreover, according to the International Trade Administration, China has the world’s largest e-commerce market and is projected to reach US$ 1.6 trillion by 2019. Over 40% of the total global e-commerce spending comes from China.
The global luxury travel market was valued at US$ 201.07 billion in 2017, and is expected to register a CAGR of 6.7% in terms of revenue, over the forecast period (2018 – 2026), to reach US$ 353.16 billion by 2026.
Figure 1. Global Luxury Travel Market Share, By Region, 2017
Source: Coherent Market Insights, 2017-18