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Luxury Travel Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global luxury travel products market was valued at USD 456.3 billion in 2022 and is estimated to expand at a CAGR of 11.9% during the forecast period from 2023 to 2030. The market growth is attributed to the rising disposable income of people worldwide and the subsequent increase in discretionary spending on luxury trips. Furthermore, the growing penetration of the internet and digitalization has made it easier for consumers to access luxury travel products. Additionally, the rise in the number of affluent travelers, who are expected to spend more on luxury travel products than other travelers, is creating a demand for such products.
The rising trend of solo travel and wellness tourism is propelling the market growth. The growing popularity of luxury wellness resorts and experiences, such as spa retreats, yoga retreats, and meditation retreats, is encouraging more people to travel for leisure, and spend on luxury travel products. In addition, the introduction of customized luxury travel packages has led to an increase in demand for luxury travel products.
The growing popularity of cruise ships and luxurious resorts is fueling the demand for luxury travel products. Cruise ships are increasingly offering bespoke experiences, such as food and wine dinners, spa treatments, and luxurious cabins. This is attracting more customers, which is driving the demand for luxury travel products. Furthermore, the increasing number of luxurious resorts and hotels worldwide is making luxury travel more accessible.
The increasing preference for luxury travel among millennials is driving the demand for luxury travel products. Millennials are increasingly willing to splurge on luxury travel experiences and are more likely to use services such as private jets, luxury resorts, and cruise ships. Furthermore, the rise of the sharing economy is leading to an increased demand for luxury travel products. The growing popularity of Airbnb, for instance, is creating an additional demand for luxury travel products. Moreover, the presence of e-commerce platforms has made it easier for customers to access luxury travel products.
Product Insights
The travel services segment led the market and accounted for a share of around 46.9% in 2022. Increasing disposable income and the growing trend of experiential luxury travel among the affluent population are the key factors driving the growth of this segment. According to an article published by Forbes, in November 2020, luxury travel is expected to increase by 6.3% in 2021, due to the growing demand for personalized travel experiences. Furthermore, the trend of adventurous and experiential luxury trips is growing among the affluent population, which is further augmenting the growth of this segment.
The accommodations segment is anticipated to expand at the fastest CAGR of 5.4% over the forecast period. The increasing demand for luxury accommodation from tourists is a key factor driving the growth of this segment. According to an article published by Luxury Travel Advisor, in March 2020, there has been a growing trend of luxury travellers opting for villas, cottages, and other lavish accommodation options. In addition, the emergence of various luxury hotels and resorts offering amenities such as spa, swimming pool, fitness centre, etc. is further contributing to the growth of the market.
Distribution Channel Insights
The offline segment accounted for the major share of the luxury travel products market in 2022. This is mainly due to the increasing population of travelers and their increasing preference for luxury travel experiences, such as fine dining, high-end hotels, and cruises. The increasing number of luxury travel agents and lifestyle boutiques are providing tailor-made packages and luxurious travel experiences to their customers. This is driving the offline segment of the luxury travel products market.
The online segment is projected to register the highest CAGR of 14.3% during the forecast period. The increasing penetration of the internet is driving the growth of the online segment. Moreover, the growing number of travel websites and online travel agencies (OTAs) are offering attractive discounts and packages for luxury travel services. OTAs are increasingly offering customized packages for customers, which is driving the segment growth. The increasing availability of luxury travel products on e-commerce portals also plays a vital role in the growth of this segment.
Type Insights
The luxury travel segment is expected to register the highest CAGR of 11.3% during the forecast period. The increasing trend of luxury travel among the affluent population in developing countries such as India and China is driving the segment. Moreover, the growing number of international tourists due to the increasing global connectivity is also a major factor driving the growth of the segment.
The ultra-luxury segment is anticipated to hold a considerable revenue share in the market in 2022. This segment is expected to be driven by the high disposable incomes of the global population and the increasing trend of luxurious vacations. Moreover, increasing investments in developing luxury hotels and resorts, particularly in developing countries, is also propelling the ultra-luxury segment. For instance, in December 2020, the InterContinental Hotels Group announced the opening of its first InterContinental resort in India, located in Goa. The resort offers luxurious accommodations, along with recreational activities such as water sports and spa services.
Regional Insights
Europe is expected to hold the largest market share of the luxury travel products market during the forecast period. The region is known for its high expenditure on luxury items and services. Additionally, the strong presence of renowned luxury travel products brands, such as Louis Vuitton, Gucci, and Christian Dior, in Europe is also driving the growth of the market in the region. France, Germany, and the United Kingdom are the key contributors to the market in this region.
Asia Pacific is expected to witness the highest growth during the forecast period. The region is expected to benefit from the growing disposable income of the middle-class population, along with the rising preference for luxury products. Additionally, the increasing number of international tourists, especially in countries such as China, India, and Japan, is also driving the growth of the market in the region.
Financial Projections
In this part of the luxury travel products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your luxury travel products business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a luxury travel products business comes from sales of luxury travel packages, advertising, and sponsorships. Here you will find a list with a description of each of them and other possible sources of profit such as commission on bookings, commissions on referrals, and the sale of related merchandise.
Projecting Expenses
In this section, all the regular expenses related to keeping the luxury travel products business running will be described. The list of operating expenses includes marketing and advertising, salaries, rent, utilities, insurance policies, travel and accommodation costs, and others.
Key companies & market share insights
Some of the major companies operating in the luxury travel market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In December 2022, Marriott International launched a new luxury travel brand called ‘The Luxury Collection’. The brand has a portfolio of over 95 properties in 30 countries.
– In January 2022, AccorHotels launched the ‘Luxury Lifestyle Hotels’ brand. The brand offers exclusive amenities and services for luxury travelers.
– In July 2022, Hilton launched a new luxury travel brand called ‘LXR Hotels & Resorts’. The brand has a portfolio of over 12 properties in 8 countries.
Some of the prominent players in the luxury travel market include:
– Marriott International
– Hilton
– Hyatt Hotels Corporation
– AccorHotels
– InterContinental Hotels Group (IHG)
– Wyndham Hotels & Resorts
– Choice Hotels International
– Starwood Hotels & Resorts Worldwide, Inc.
– Carlson Rezidor Hotel Group
– Shangri-La Hotels and Resorts
Global Luxury Travel Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global luxury travel products market based on product, distribution channel, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Hotels & Resorts
– Airlines
– Cruises
– Car Rentals
– Activity & Attraction Tickets
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Online
– Offline
– Others
3. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What is the Potential of the Luxury Travel Market?
[A]: The potential of the luxury travel market is immense and is estimated to grow rapidly during the forecast period. This is due to the increasing demand for luxury services and products among affluent travelers. Moreover, the rise in disposable incomes and the growing trend of experience-based travelling is expected to drive the growth of the luxury travel market.
[Q]: Who are the Key Players in the Luxury Travel Market?
[A]: The key players in the luxury travel market include Accor SA, Marriott International, Inc., Carnival Corporation & plc, American Express Global Business Travel, and Club Med SA.
[Q]: What are the Growth Drivers of the Luxury Travel Market?
[A]: The growing number of affluent travelers and the rising trend of experience-based traveling are the major drivers of the luxury travel market. Furthermore, the increasing trend of digitalization is expected to drive the growth of the luxury travel market, as travelers are now able to book luxurious services easily and conveniently.
[Q]: What Factors are Restraining the Growth of the Luxury Travel Market?
[A]: The major factor restraining the growth of the luxury travel market is the high cost associated with luxury travel, as it is unaffordable to many. Additionally, the high cost of luxurious services and products and the complexity of organizing luxury services are other factors that are limiting the growth of the luxury travel market.
[Q]: Which Region Offers the Largest Opportunity for Sales of Luxury Travel Products?
[A]: North America is expected to offer the largest opportunity for the sales of luxury travel products, due to the increasing demand for luxury services and products and the growing trend of experience-based traveling in the region.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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