Global Luxury Travel Market to Grow by $1.37 Billion in 2028
Research Dive in its latest published report estimates that the Global Luxury Travel Market will generate $1,369,103.8 million and exhibit a CAGR of 8.8% from 2021 to 2028.
The demand for exotic holidays by people for unique travel experiences is increasing rapidly. A luxury trip is a break that people take to relax and these holidays are free from worries that helps in reducing stress. These are the major factors predicted to foster the growth of the global luxury travel market during the analysis period.
Besides, the ongoing technological advancements in luxury travel provide convenience of booking, offer best deal and discounts, provide facility to see all accommodation options along with contactless payment options are anticipated to generate massive growth opportunities for the global market by 2028. However, the outbreak of natural disasters or diseases such as the COVID-19 virus leading to socio-economic disruptions are factors expected to restrict the market growth in the estimated timeframe.
The COVID-19 outbreak has negatively impacted the global luxury travel market during the pandemic. The decline in the growth rate of the market is majorly attributed to social distancing measures, travel restrictions, and unprecedented lockdowns to curb the spread of the life-threatening coronavirus. Besides, many tourism companies and tourism-related sectors such as lodging, catering, transportation, and retail have shut down their operations and also faced severe revenue losses. However, various companies are helping society with their technological advancements and initiatives to recover from the chaotic situation.
Based on tour type, the cruise/ship expedition sub-segment is projected to grow at the fastest rate and generate a revenue of $115,479.0 million by 2028. This is majorly owing to the increasing popularity of cruise/ship expeditions as it offers the soft adventure experience, and allows travelers to explore the places that can't be touched by land.
Based on age group, the baby boomer sub-segment is valued for $180,031.3 million in 2020 and is projected to garner dominant market share in the global industry by 2028. This is mainly because baby boomers can travel and opt for longer holidays due to their flexible schedules.
Based on traveler type, the absolute luxury sub-segment accounted for $253,468.1 million in 2020 and is projected to generate the majority of market share over the forecast period. This is majorly owing to excellent hotels, priority check-ins, food services, on-demand service, and enhanced entertainments such as night clubbing and cruise dinner.
Based on region, the Asia Pacific luxury travel market is expected to grow at the fastest rate and reach up to $447,151.1 million by 2028. This growth is majorly due to economic growth, rising popularity for adventure, and the desire to explore various places among the young population.
