Global Luxury Travel Market Looks to Reach $1,615 Billion by 2026

Allied Market Research has published a new report on "Luxury Travel Market: Global Opportunity Analysis and Industry Forecast, 2019–2026", providing an outlook luxury market's rise over the next several years.

The global luxury travel market, consisting of services that provide premium and most-desirable types of accommodations, transport and cultural encounters, was valued at over $891 billion in 2018.

That valuation is expected to soar to an estimated $1,614.6 billion by the year 2026 at a compound annual growth rate (CAGR) of 7.9 percent.

Prime determinants that factor into this assessment include travelers’ increasing inclination toward exotic holiday experiences, a surge in middle- and upper-middle-class spending, online booking options and an overall increase in the global impact of the travel industry.

Consumer demand for enhanced service standards and the emergence of new destinations continue to create lucrative, new opportunities for providers worldwide. However, varying socio-economic factors and the unforeseen impact of natural disasters in certain destinations could potentially hinder market growth.

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Researchers organized their data according to several sets of criteria, primarily:

— Type of Traveler: Absolute Luxury, Aspiring Luxury, and Accessible Luxury

— Age Group: Millennial, Generation X, Baby Boomers, and Silver Hair

— 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

Allied Market Research’s findings predict that the ‘Adventure and Safari’ segment will continue to lead the pack during the forecast period, 2019 through 2026. This market segment held the largest share in the global travel market last year, accounting for over 40 percent of the total share, and it doesn’t appear to be slowing down. The report attributes its popularity towards travelers’ current inclination towards what it termed “transformative and engaged activities”.

Still, the ‘Culinary Travel and Shopping’ segment seems set to claim the highest growth rate during the forecast period, with a CAGR of 9.7 percent from 2019 to 2026. Its sizeable increase is being attributed to a surge in outbound travel, travelers’ eagerness to experience unique and indigenous dining experiences in various countries, and the organization of food-centric festivals and events worldwide.

Analyzed according to age group, in terms of growth alone, Millennials are foreseen to outpace the other market segments, with a CAGR of 9.5 percent forecast from 2019 to 2026. The research credits Millennials with a particular inclination towards wanderlust, and the need to break up life’s monotony with short trips to culturally rich destinations and different countries.

Although, the Baby Boomer segment still leads in terms of overall market share, accounting for about two-fifths of the total global luxury travel market in 2018 and estimated to maintain its lead for the forecast period.

Geographically speaking, North America is estimated to accomplish the fastest rate of growth, with a CAGR of 11.4 percent predicted for 2019 to 2026, owing to an increase in international spending on travel, the presence of highly exclusive and well-established resorts, and the availability of secluded ranch, spa or private-island retreats.

Europe, however, is foreseen to maintain its leadership position during the forecast period, having contributed almost two-fifths of the total market share during 2018. This comes thanks to increased customer preference for customized and private vacations or cruise-going expeditions; and a surge in the number of visitors traveling to countries like Greece, Spain and Turkey.

Key Market Players Profiled in the Luxury Travel Market Report include:

—Abercrombie & Kent USA, LLC

—Cox & Kings Ltd.

—Travcoa

—Micato Safaris

—Ker & Downey

—Tauck

—Scott Dunn Ltd.

—Kensington Tours

—Butterfield & Robinson Inc.