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Luxury Tourism Market Analysis
- Report ID: GMI5038
- Published Date: Feb 2023
- Report Format: PDF
Luxury Tourism Market Analysis
With respect to the generation, the luxury tourism market size from baby boomers segment is expected to expand at a CAGR of 20% through 2032, fueled by growing preference of baby boomers to travel with family and friends. This generation typically spends more on luxury tourism to maintain good health, relax, and socialize. The people falling in this group are wealthier, have more free time than other generations, and are more inclined to spend more on leisure. They travel an average of four to five times annually, which is a great driving force for the market.
Based on type, the luxury tourism market share from cruises yachting & small ship segment dominated for USD 4 billion in 2022, propelled by increasing consumer spending on ocean, and underwater exploration holidays. Ocean and beach holidays are synonymous with luxury, and with traveler preferences increasingly moving towards having their own private bubble due to COVID-19, yachting and small ship cruises are becoming more popular. Having been couped-up in their homes, people are more interested in visiting new exotic destinations both on board and at sea.
The growth can also be attributed to increasing consumer inclination towards water-based adventure sports such as kayaking, stand-up paddleboarding, diving, cruising yachts and small craft, hiking, snorkeling, and camping, among others.
Based on standard, the luxury segment held over 65% of the luxury tourism industry share in 2022, owing to increasing spending trend among millionaires on culinary and adventure tourism. As per Netherlands-based CBI Ministry of Foreign Affairs, 3-5% of European tourists are purely visiting for culinary experiences. A growing portion of the global population is spending on trips to more exotic locations to have more opulent 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.
Regionally, the North America luxury tourism market accounted for USD 2 billion revenue in 2022, led by the growing spending power of millennials. Meanwhile, the increasing disposable income of baby boomers is also creating a vast customer pool for the region’s industry. The presence of lavish hospitality brands such as Hyatt, Marriott, and the Hilton among others, further helps the scenario by attracting more luxury travelers. In November 2021, Hyatt acquired Apple Leisure Group, a provider of luxury resort-management services in 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.
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Luxury Tourism Market Scope
