- The luxury travel industry is expected to reach a market size of over $1,650bn by 2031.
- The emergence of wealthy individuals in developing countries has catalysed growth in the luxury travel industry.
- Market players have embraced product launches, business growth and cultural focus as their main strategies for development.
A recent assessment by Allied Market Research titled 'Luxury Travel Market' places the global luxury travel market at an estimated $6,38.2bn in 2021, with a predicted value of $1,650bn by 2031.
The luxury travel market’s CAGR of 8.9% between 2022 and 2031 is primarily due to the increasing demand for unique holiday destinations that mix local culture with luxury travel.
Luxury travel is a distinct sector that is becoming more prominent in the overall travel industry due to increases in people’s disposable incomes and their standard of living.
Companies are aiming to marry cutting-edge amenities with the prestige associated with luxury travel. This wide adoption of new technologies, such as the Oculus Rift virtual reality device and GoPro wearable technology, by luxury travel companies has sparked notable growth in the luxury travel market.
The growth of the market is expected to be significantly driven by the increasing number of high net-worth individuals (HNWIs) and the ambitions of the Millennial generation who desire top-spec technologies and traditional luxury.
The rise of HNWIs in developing countries has encouraged the luxury travel market growth and has informed the ‘Luxury Travel Market’ report. HNWIs looking to combine culture, technology and luxury should utilise a secure online money transfer system.
Baby Boomers and Generation X are the primary forces driving the luxury travel market in the Asia-Pacific region. The increased enthusiasm of people to have distinct travel experiences has prompted industry leaders to provide excursions.
According to Allied Market Research’s analysis, the luxury travel market can be divided into different types of tours, age groups, types of travellers and regions.
Tours include customised and private holidays; adventure and safari; cruise/ship expeditions; small group journeys; celebration and special events; and culinary travel and shopping, with cruise/ship expeditions predicted to witness the fastest market growth of 10.9%.
The celebration and special events segment holds a 6.5% share of the global luxury travel market and is predicted to experience a consistent CAGR of 9.5% in the upcoming forecast period.
HNWIs must research the various methods of money transfer before travelling overseas to access secure and cost-effective services.
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