Luxury Tourism Market Size By Type (Customized & Private Vacations, Celebration Journeys, Adventure & Sport Travel, Safari, Cruises Yachting & Small Ship), By Tour Type (Solo, Group), By Generation (Millennial, Generation X, Baby Boomers), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027

Published Date: Apr 2021  |  Report ID: GMI5038  |  Authors: Preeti Wadhwani, Saloni Gankar

Report Format: PDF   |   Pages: 250   |   Base Year: 2020




Summary Table of Contents Industry Coverage Methodology

Industry Trends

Luxury Tourism Market size worth over USD 15 billion in 2020 and is expected to expand at around 16% CAGR from 2021 to 2027.
 

The rising disposable income globally will boost the industry growth over the forecast timeframe. For instance, the EU’s gross household adjusted disposable income was equal to around 72.7% of the value of gross domestic product (GDP) in 2019. Growing literacy rates coupled with the improving economic conditions attributed to favorable government initiatives have resulted in the increasing disposable income in both developed and developing economies globally. People are focusing on spending more on luxury and convenience to ensure a comfortable yet high-quality tours to international destinations. The new generation of demanding and well-educated travelers will support the luxury tourism industry growth.
 

Luxury Tourism Market

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In 2020, the coronavirus (COVID-19) pandemic hampered the luxury tourism industry negatively owing to stringent lockdown measures imposed in several countries. The market witnessed a downfall as travelers refrained from undertaking non-essential tours due to concerns associated with the spread of the virus. The market witnessed gradual growth by the end of 2020, following the relaxations in lockdowns imposed and the reopening of national borders. However, the second and third wave of the pandemic following the partial lockdowns in 2021 again hindered the market growth in the first quarter of the year. The industry will experience modest growth in 2021 following the roll out of vaccines and relaxations on travel bans.
 

Luxury Tourism Market Report Coverage
Report Coverage Details
Base Year:2020Historical Data for:2017 to 2020
Market Size in 2020:USD 15 BillionForecast Period:2021 to 2027
Forecast Period 2021 to 2027 CAGR:16%No. of Pages:250
2027 Value Projection:USD 45 Billion Tables, Charts & Figures:272
Geographies covered (21):U.S., Canada, UK, Germany, France, Italy, Spain, Russia, China, India, Japan, South Korea, Southeast Asia, Singapore, Australia, Brazil, Mexico, Argentina, Peru, GCC, South Africa
Segments covered:Type, Tour Type, Generation, Region
Growth Drivers:
  • Large number of millennials in North America
  • Rising spending on luxury tourism by baby boomers in North America and Europe
  • Growing trend of cruising holidays in Europe and Asia Pacific
  • Rising number of affluent consumers in Asia Pacific
  • Shift towards customized & private vacations in Latin America
  • Increasing demand for unique and exotic safari experiences in MEA
Pitfalls & Challenges:
  • Decline in travelling activities due to coronavirus pandemic
  • Rising political turmoil in global market

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The growing popularity of safari amongst tourists in Singapore will contribute to market expansion

The Singapore luxury tourism market is set to register more than 22% CAGR through 2027. The night safari is a prominent traveler attraction in the country as it is the first safari park for nocturnal animals in the world. This popular safari park attracts more than 1.1 million tourists every year. The River Safari, which is both an aquarium and a river-themed zoo, is also a popular global tourist destination and is gaining popularity. The robust hospitality industry in the region caters to the increasing demands of travelers preferring luxury tourism. The market will gain traction attributed to the strong economic conditions in the region reinforced by the favorable government initiatives supporting the luxury tourism sector. The industry will witness growth attributed to the presence of luxurious hotels that ensure comfortable stay to the tourists.
 

The rise in the number of individuals experiencing solo luxury tourism for adventure to propel the market demand

Europe solo luxury tourism market size was worth around USD 2.5 billion in 2020. The number of searches for “solo travel” increased 131% on Google from 2016 to 2019. The rise in the number of individuals preferring solo luxury tourism to accomplish the purpose of their tour without distractions or interruptions is likely to drive the regional demand.
 

Several individuals prefer luxury tourism to explore the destination, lifestyle, architecture or to study the nature. Working professionals are increasingly opting for solo luxury tourism relaxation, solitude, and to ensure complete freedom at all stages of the trip ranging from booking hotels to the destinations to be visited. Solo trips enable working professionals to enjoy a vacation customized entirely according to their choice to rejuvenate from the hectic work schedules. Luxury tourism agencies offering plans developed specifically for solo travelers will further boost the market growth.
 

The rise in the number of millennials in the U.S. seeking authentic travel experiences to boost the market statistics

U.S. Luxury Tourism Market By Generation

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In the U.S., demand for luxury tourism services from millennials is projected to grow at a CAGR of above 17% during 2021 to 2027. The market growth can be attributed to the rise in the number of millennials searching for luxury accommodation with high-quality amenities. According to The Census Bureau, as of July 2020, more than half of the total population in the U.S. are members of the millennial generation or younger. The growing popularity of Instagram has encouraged millennials in the region to leverage the benefits of luxury tourism to upload pictures online. The high use of social media sites in the country to upload attractive content will boost the industry growth.
 

The rise in the number of international tourists in Europe to fuel the luxury tourism market revenue

Europe Luxury Tourism Market By Country

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The Europe luxury tourism market accounted for around 35% of the global revenue share in 2020. The market will gain traction with the growing popularity of beach destinations in countries such as Italy, France, and Spain. France ranks first in attracting tourists with high purchasing power, with 36%, followed by Italy and the UK, with 31%. Spain occupies the seventh place in the list of the major countries receiving tourists with high purchasing power.
 

The number of international visitors to Spain exceeded 83 million in 2019. Several travelers aiming to experience luxury tourism also undertake activities, such as scuba diving and snorkeling, in several popular beach destinations in Italy, France, and Spain. The growing popularity of European destinations coupled with the availability of luxurious accommodation facilities will support the market value.
 

Launching attractive plans as per changing traveler demands form a key trend amongst market players

The players operating in the market are introducing plans to cater to the changing consumer demands to capitalize on the expanding tourism industry. For instance, in April 2021, Abercrombie & Kent (A&K), a luxury travel company, added the plan, Encore Departure of Wildlife Safari, that offers private jet journeys around the world for wildlife lovers. The consumers can visit seven wildlife destinations in 24 days by private jet. The increasing demand for personalized luxurious travels after the pandemic will support the industry expansion.
 

Key luxury tourism market players include Thomas Cook (India) Ltd. (TCIL), Abercrombie & Kent USA, LLC, TUI Group, Travelopia, Lindblad Expeditions, Jet2 Holidays, Audley Travel, Silversea Cruises, G Adventures, &Beyond, Classic Journeys, Backroads, Scott Dunn Ltd., Inspiring Travel Company, and Butterfield & Robinson Inc.
 

This market research report on luxury tourism includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2017 to 2027 for the following segments:
 

Market, By Type

  • Customized & private vacations
  • Celebration journeys
  • Adventure & sport travel
  • Safari
  • Cruises yachting & small ship
  • Others

Market, By Tour Type

  • Solo
  • Group

Market, By Generation

  • Millennial
  • Generation X
  • Baby boomers
  • Others

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
  • MEA
    • GCC
    • South Africa
       

Frequently Asked Questions (FAQ) :

The luxury tourism industry size had reached USD 15 billion in 2020 and will grow at a CAGR of 16% over the forecast timeframe 2021-2027.
The Europe luxury tourism industry held 35% share of the global market in 2020 and will expand on account of the increasing popularity of beach destinations in countries like Spain, Italy, and France.
The U.S. luxury tourism market will grow at a CAGR of 17% between 2021 and 2027 owing to an increase in the number of millennials looking for luxury accommodation with high-quality amenities.
The Singapore luxury tourism industry will record a CAGR of 22% over 2021-2027 due to the increasing attraction for services like night safaris among travelers.

Premium Report Details

  • Published Date: Apr 2021
  • Pages: 250
  • Tables: 245
  • Charts / Figures: 27
  • Companies covered: 20
  • Countries covered: 21

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