Luxury Tourism Market Size
Luxury Tourism Market size valued at USD 20 billion in 2022 and is projected to grow at over 15% CAGR from 2023 to 2032. Driven by a growing demographic of affluent consumers in the Asia Pacific.
In recent years, the number of wealthy people in the Asia Pacific region has grown. This is because of government policies that have improved the economy and raised literacy rates in the region. This has led to a rise in demand for luxury tourism and other leisure activities. The new generation of wealthy and well-educated consumers prefers travel that is easy, comfortable, and luxury. These preferences now mostly affect the choices tourists make when they buy things, and the worldwide tourism industry is paying more and more attention to these interests.
To help its cruise tourist industry, the Indian government has recently started a number of programs, such as lowering port fees, improving infrastructure, and giving cruise ships priority berthing.
| Report Attribute | Details |
|---|---|
| Base Year | 2022 |
| Luxury Tourism Market Size in 2022 | USD 20 Billion |
| Forecast Period | 2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR | 15% |
| 2032 Value Projection | USD 150 Billion |
| Historical Data for | 2018 to 2022 |
| No. of Pages | 350 |
| Tables, Charts & Figures | 325 |
| Segments covered | Type, Tour Type, Generation, Standard |
| Growth Drivers |
|
| Pitfalls & Challenges |
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Luxury Tourism Market Trends
In general, the tourism industry is very sensitive to geopolitical crises. Travelers tend to stay away from places that have even a little bad reputation for their stability. The state of a country's overall domestic security and political stability directly affects its standing as a travel destination. Ongoing protests, political strikes, and conflicts are some of the biggest problems for attracting visitors and growing tourism, especially when it comes to offering high-end experiences.
An Analysis of the Luxury Tourism Market
The baby boomer section of the luxury tourism market is predicted to develop at a rate of 20% per year until 2032. This is because baby boomers are more likely to want to travel with family and friends. Most of the time, this age spends more on luxury travel to stay healthy, relax, and meet new people. People in this group are richer, have more free time than people in prior generations, and are more likely to spend more on leisure. They travel four to five times a year on average, which is a big reason why the market is doing well.
The luxury tourism market share from the cruises, yachting, and small ship category was the largest in 2022, at USD 4 billion. This was due to more people spending money on vacations that involve exploring the ocean and underwater. Ocean and beach vacations are the height of luxury. Because of COVID-19, more and more people want to have their own private space, therefore yachting and small ship cruises are becoming more popular. People are more eager in going to new, exotic places both on board and at sea now that they've been stuck at home.
The growth can also be linked to more people wanting to try water-based adventure sports like kayaking, stand-up paddleboarding, diving, cruising yachts and small boats, hiking, snorkeling, and camping, to name a few.
In 2022, the luxury segment made up more than 65% of the luxury tourism business, thanks to millionaires spending more on adventure and culinary tourism. According to the CBI Ministry of Foreign Affairs in the Netherlands, 3–5% of European tourists come just for the food. More and more people throughout the world are spending money on excursions to more exotic places to have more luxurious experiences.
Experts are comparing such trips to the Grand Tours of old age, where many people took extended luxury tours to explore historical infrastructure, nature, local culture, and food.
In 2022, the North America luxury tourist sector made $2 billion in sales, thanks in part to millennials having more money to spend. At the same time, the region's sector has a huge customer base because to baby boomers' growing disposable income. The presence of high-end hotel chains like Hyatt, Marriott, and Hilton, among others, makes the situation even better by bringing in more wealthy guests. Hyatt bought Apple Leisure Group in November 2021. The company manages premium resorts throughout North America.
As per the U.S. Department of Commerce, international arrivals to the U.S. increased to 22.1 million in 2021, resulting in increased spending by international visitors, reaching USD 81 billion.
Luxury Tourism Market Share
Some of the leading companies operating in the market include
- National Geographic Expeditions, LLC
- Abercrombie & Kent USA, LLC
- Butterfield & Robinson Inc.
- beyond
Many companies in the field are prioritizing mergers and acquisitions to extend their global footprint.
For instance, in June 2022, Abercrombie & Kent USA, LLC, an award-winning luxury travel firm, acquired Crystal Cruises, a luxury cruise vessels firm, and its luxury cruise vessels Crystal Serenity & Crystal Symphony.
Impact of COVID-19 Pandemic
The COVID-19 pandemic hit the fancy travel industry hard. With travel bans and people spending less money, it was like a dark cloud over the industry. In 2020, a whopping 72% fewer people from other countries visited, and 2021 wasn't much better with a 71% drop compared to the good old days of 2019. But things are looking up as the pandemic eases and governments are ramping up efforts to get the tourism industry going again. For example, the UK government put some money into building a fancy cruise ship center in Greenock, Scotland. They're hoping to lure in the stylish folks from the most glamorous cruise ships to Inverclyde.
The market research report on luxury travel includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD million from 2018 to 2032, for the following segments
Market, By Type
- Customized & Private Vacations
- Celebration Journeys
- Adventure & Sport travel
- Safari
- Cruises Yachting & Small Ship
Market, By Tour
- Solo
- Group
Market Size, By Generation
- Millennial
- Generation X
- Baby boomers
Market Size By Standard
- Luxury
- Ultra-Luxury
The above information has been provided for the following regions and countries
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Russia
- Asia Pacific
- China
- India
- Japan
- South Korea
- Southeast Asia
- Singapore
- Australia
- Latin America
- Brazil
- Mexico
- Argentina
- Peru
- Middle East & Africa
- GCC
- South Africa
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