Luxury Tourism Market size worth over $45bn by 2027
Published Date: April 22, 2021 Authors: Preeti Wadhwani, Saloni Gankar
Luxury Tourism Market size is set to exceed USD 45 billion by 2027, according to a new research report by Global Market Insights, Inc.
The government organizations supporting the development of the travel industry globally will boost the market growth. For instance, January 2021, the UAE Cabinet approved the foundation of Emirates Tourism Council to strengthen the tourism portfolio. Such initiatives will encourage explorers aiming to experience luxury tourism to undertake trips to these regions, supporting the market expansion.
The ongoing coronavirus (COVID-19) pandemic negatively impacted the luxury tourism market in 2020 due to the temporary bans on international travels and the lockdowns imposed in several countries. Although there were relaxations in lockdowns followed by the reopening of borders in the second half of 2020, several countries are witnessing second and third lockdowns following the rise in the number of coronavirus positive cases. Enthusiastic travelers wanting to experience luxury tourism are refraining from planning trips owing to the concerns associated with the spread of the virus. The roll out of the vaccines is likely to positively affect the market progression by the end of 2021.
Rise in the number of sportsmen and adventure travelers undertaking luxury tourism to fuel the industry growth
Get more details on this report - Request Free Sample PDF
The luxury tourism market will showcase growth attributed to the high demand for comfortable and convenient tours from sports enthusiasts globally. According to the Diving Equipment & Marketing Association (DEMA), visitors participating in recreational scuba diving and snorkeling contribute to around USD 900 million to the Florida, U.S. economy every year. Trekking and snorkeling are popular adventure activities amongst travelers. Activities, such as safaris, culinary activities, hiking, cycling, and wellness-focused activities, are also gaining popularity. Every year, Europeans make around 100 million adventure trips to an international destination, according to CBI Ministry of Foreign Affairs. Luxury tourism will gain popularity with the rise in the number of adventure travelers spending exclusively to ensure comfortable and convenient stay, in turn, propelling the market value.
Browse key industry insights spread across 250 pages with 245 market data tables and 27 figures & charts from the report, “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” in detail along with the table of contents:
The rise in the number of travelers undertaking group trips to international destinations for leisure to support the luxury tourism market demand
Although solo trips have gained popularity over the recent years, several travelers prefer to undertake group luxury tourism to enjoy the trips with friends and family. Travel companies introduce several group luxury tourism packages to include accommodation at a resort or a hotel, meals, and sightseeing tours. They suggest packages suitable to the age group of the travelers. For instance, a package involving a visit to a zoo or an amusement park is included in a family trip involving kids. Travelers often prefer group trips over solo tours to enjoy enhanced luxury tourism experience with like-minded people. Sportsmen form groups to undertake adventure tours with other sports enthusiasts interested in similar kind of fitness activities. The rise in the number of working professionals undertaking group trips to international destinations will impel the industry expansion.
Rise in the number of international tourists visiting the Middle East & Africa over the recent years to support the market growth
The luxury tourism market will observe high growth in the region during the forecast period on account of the increase in the number of international tourists undertaking luxury tours to countries such as Saudi Arabia and the UAE. The UAE has launched several initiatives to foster the tourism market over the recent years to ensure overall economic development. The total contribution of the tourism sector to the UAE’s GDP is forecast to rise by 4.9% per annum to USD 72 billion comprising 12.4% of GDP in 2027. Investment in the tourism and travel sector is forecast to rise by 11% per annum over the next 10 years to USD 20.3 billion in 2027. In response to the increasing number of tourists, the government has also boosted the construction of large hotels, shopping centers, and entertainment venues. The rise in the number of international tourists undertaking luxury tours in the Middle East & Africa to experience their culture and cuisine will support the industry progression.
Market players are adapting to the changing consumer preferences by introducing attractive packages
Key players operating in the luxury tourism market include TUI Group, Travelopia, Thomas Cook (India) Ltd. (TCIL), Abercrombie & Kent USA, LLC, G Adventures, &Beyond, Lindblad Expeditions, Classic Journeys, Backroads, Jet2 Holidays, Audley Travel, Silversea Cruises, Scott Dunn Ltd., Inspiring Travel Company, and Butterfield & Robinson Inc. The industry leaders are analyzing the growing consumer demands attributed to the rising disposable income. They are focusing on launching a wide range of packages catering to the needs of different categories of travelers.