The growth of the luxury travel market is largely driven by the rising spending power of the middle and upper-middle-class segments. With increasing disposable incomes, especially in emerging markets, these consumers are investing more in premium experiences and high-end travel.
WILMINGTON, Del., March 6, 2025 /PRNewswire/ -- Allied Market Research published a report, titled, "Luxury Travel Market by Type of Tour (Customized and Private Vacations, Adventure and Safari, Cruise/Ship Expedition, Small Group Journey, Celebration and Special Events, and Culinary Travel and Shopping), Age Group (Millennial, Generation X, Baby Boomer, and Silver Hair), and Type of Traveler (Absolute Luxury, Aspiring Luxury, and Accessible luxury): Global Opportunity Analysis and Industry Forecast, 2024-2035". According to the report, the global luxury travel market size was valued at $890.8 billion in 2023 and is projected to reach $2149.7 billion by 2035, growing at a CAGR of 7.4% from 2024 to 2035.
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Prime Determinants of Growth
Travelers are opting for unique and exotic holiday destinations, to get away from daily hectic schedules and to gain valuable experiences. Private, quiet, serene, and exotic locations are major factors that people consider while choosing their travel location. Private islands have been voted as a top preference by luxury travelers. In addition, destinations, that are culturally and traditionally intriguing, are getting popular among affluent travelers, owing to the growing interest of people in learning and experiencing the local culture. Travelers who want to gain a firsthand taste of culture and local life often opt for culinary tours. Furthermore, the rise of digital transformation presents a significant opportunity for the luxury travel market, particularly with the growing interest in virtual luxury travel experiences. With advancements in virtual reality (VR) and augmented reality (AR), luxury travel providers can offer immersive, digital experiences that allow affluent travelers to preview destinations, exclusive accommodations, or unique activities before booking. In addition, digital tools such as personalized travel apps, concierge services, and AI-driven itineraries enhance customer experience, thus providing greater convenience and customization.
Report coverage & details:
Report Coverage | Details |
Forecast Period | 2024-2035 |
Base Year | 2023 |
Market Size in 2023 | $890.8 billion |
Market Size in 2035 | $2,149.7 billion |
CAGR | 7.4 % |
No. of Pages in Report | 248 |
Segments Covered | Type of Tour, Age Group, Type of Traveler, and Region. |
Drivers |
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Opportunity |
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Restraints |
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The adventure and safari segment to maintain its leadership status throughout the forecast period.
By type of tour, the adventure and safari segment held the major share of the market share in 2023, accounting for more than two-fifths of the global luxury travel market and is estimated to maintain its leadership status throughout the forecast period. The average age of an adventure traveler has been identified to be 48 years, with more than half being females. A well-known travel company for this segment is Off the Beaten Path, LLC, which designs exploration of wilderness areas of North America such as the Rockies and Alaska. From the growth perspective, Asia-Pacific and LAMEA are the two potential markets, expected to witness considerably higher growth rates during the forecast period.
However, the customized and private vacations segment is projected to manifest the highest CAGR of 8.8% from 2024 to 2035. The growth of customized and private vacations in the luxury travel market is fueled by several factors, including rise in disposable incomes, increase in demand for unique and experiential travel, and advancements in technology that enable personalized planning.
The baby boomer segment to maintain its leadership status throughout the forecast period.
By age group, the baby boomer segment held the major share of the market share in 2023, accounting for more than one-third of the global luxury travel market, and is estimated to maintain its leadership status throughout the forecast period. Baby boomers have larger disposable income among all age groups. They have the maximum number of independent travelers who have seen and visited many places, have good jobs, and not much liability. Baby boomers are keen to stay active and healthy while they are on vacation, hence cycling tours are highly preferred by them.
However, the millennial segment is projected to manifest the highest CAGR of 7.9% from 2024 to 2035. Millennials are driven by wanderlust and breaking life's monotony. These groups of youngsters prefer short trips to culturally rich and different countries, also local shopping is a major factor in their traveling.
The absolute luxury segment to retain its dominance by 2035.
By type of traveler, the absolute luxury segment held the major share of the market in 2023, accounting for more than half of the global luxury travel market, and is estimated to maintain its leadership status throughout the forecast period. Few of the absolute luxury travelers own a private plane, vacation home, and yacht. Travel is the second most popular pastime among high-budget tourists, while shopping remains the first choice. Among all billionaires, around 30% opt for traveling; however, nearly 100% travel at least once a year.
However, the accessible luxury segment is projected to manifest the highest CAGR of 8.5% from 2024 to 2035. Although most luxury travelers do not require a private jet, cruise ship, or a private butler to travel to exotic destinations, they strive for a luxury travel experience at least on one of their trips.
Europe to maintain its dominance by 2035.
By region, Europe held the highest market share in terms of revenue in 2023, accounting for more than one-third of the luxury travel market. Some of the factors driving the growth of the luxury travel market include an increase in people's desire for unique and exotic vacation experiences, rise in middle- and upper-class expenditure, and surge in people's desire to spend more time with family. People choose exotic foreign vacations and adventure trips to gain valuable experiences. Business travel has also evolved over time, and people now travel excessively for business trips.
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Leading Market Players:
- Abercrombie & Kent Ltd.
- Cox and Kings Ltd
- TUI group
- Micato Safaris
- Ker and Downey
- Tauck
- Thomas Cook Group
- Scott Dunn Ltd.
- Kensington Tours
- Butterfield & Robinson Inc.
The report analyzes these key players in the global luxury travel market. These players have adopted various strategies such as expansion, new product launches, partnerships, and others to increase their market penetration and strengthen their position in the industry. The report helps determine the business performance, operating segments, developments, and product portfolios of every market player.
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