Luxury Travel Market Size, Share & Trends Analysis Report By Tour (Safari & Adventure, Culinary Travel & Shopping), By Age Group (Millennial, Baby Boomers), By Region, And Segment Forecasts, 2023 - 2030

Luxury Travel Market Size, Share & Trends Analysis Report By Tour (Safari & Adventure, Culinary Travel & Shopping), By Age Group (Millennial, Baby Boomers), By Region, And Segment Forecasts, 2023 - 2030

Luxury Travel Market Growth & Trends

The global luxury travel market size is expected to reach USD 2.32 trillion by 2030, registering a CAGR of 7.7% from 2023 to 2030, according to a new report by Grand View Research, Inc. The growing desire to escape the stress, hustle-bustle, and routine of everyday life has driven the attraction for travelers. Moreover, the increasing life expectancy of people and improved health conditions even in old age are encouraging more and more individuals to follow an active lifestyle. Moreover, the new trend of micro trips is expected to boost the market growth during the forecasted period. The demand for luxury travel focused on wellness continues to increase, with travelers actively seeking experiences, itineraries, and products tailored to health, fitness, nutrition, appearance, sleep, and mindfulness.

According to a 2021 American Express survey, 76% of respondents expressed a desire to allocate more of their travel budget toward improving their overall well-being, while 55% indicated a willingness to invest extra in wellness activities for future vacations. Although many spas and health retreats faced closures during the pandemic, the Global Wellness Institute anticipates a robust recovery, projecting an annual growth rate of 17% and an estimated market value of USD 150 billion by 2025. In terms of luxury cultural tourism, festivals have become a major focus, and notions of authenticity have become spots of attraction in the festivals. Tourists seek an authentic experience of the festivals and associated cultural rituals and traditional practices.

For instance, in August 2022, the Indian government announced new waterways between Mathura, Vrindavan, and Agra to promote religious tourism. Under this project, the cruises to Gokul, Vrindavan, and Mathura will be connected by waterways on the Yamuna River at affordable rates. Vrindavan and Mathura have a rich cultural heritage of fairs and festivals like Raasleela and Janmashtami Mela. Social connectivity is another emerging trend among luxury travelers to connect and experience different societies and cultures. For example, G Adventures (formerly known as Gap Adventures) is a social enterprise and small-group adventure travel company that brings travelers closer to society and its culture.

G Adventures is capitalizing on the social connectivity trend by providing an opportunity for local communities to connect and socialize with travelers seeking cultural exploration. Companies in the market are focusing on strategies, such as mergers and acquisitions, to gain a higher market share and increase their service footprint. In June 2021, Inspirato LLC, the innovative luxury travel subscription brand, and Thayer Ventures Acquisition Corp., a publicly traded special purpose acquisition company, announced a definitive merger agreement that will result in Inspirato becoming a publicly listed company. This merger enabled the company to increase and broaden its service capabilities and bolster its package offerings.

Luxury Travel Market Report Highlights

• The culinary travel & shopping segment is anticipated to witness the fastest CAGR over the forecast period
• Culinary travel, often referred to as food tourism packages, encompass travel offerings that revolve around food and beverages. These packages are tailored to include destinations, sites, attractions, or events with a focus on the culinary aspect
• The millennial segment is expected to witness a significant CAGR over the forecast period. Millennials prioritize experiences over material possessions, valuing the memories and personal growth that luxury travel can provide
• Millennials are hence shifting their focus from traditional pampering to a wider range of compelling traveling experiences
• Europe dominated the global market in 2022 due to the rising travel connectivity, coupled with rapid penetration of high-speed internet, which has made even the most remote places in European countries accessible to travelers
• This is driving the need to explore new and exotic locations across the region, thereby strengthening the market growth

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