The Luxury Tourism Market is set to grow from its current market value of more than $20 billion to over $150 billion by 2032; as reported in the latest study by Global Market Insights, Inc.
Luxury Tourism Market will expand considerably during 2023-2032 owing to the expanding trend of tourism. Luxury travel has transformed massively, and people are inclining more towards adventure and the need for experiencing local customs and food, which has potentially pushed the market prospects for luxury tourism over the recent years.
In addition, increasing demand for recreational activities and hefty spending on tourism would further augment the market scope. According to credible reports, in September 2021, 76% of people were ready to spend more on travel and improve their health. In addition, 55% were ready to pay extra for wellness activities on future vacations.
Besides, conglomerates operating in the luxury tourism industry are working persistently to gain a competitive advantage in the overall market. To cite an instance, in June 2022, A&K Travel Group Ltd., acquired Crystal Symphony and Crystal Serenity. After extensive refurbishment, both ships are expected to resume service in 2023 under the "Crystal Cruises" brand, which was acquired by A&K Travel Group Ltd earlier.
Overall, the luxury tourism market is segmented in terms of type, tour, generation, standard and region.
Based on type, the customized and private vacations segment accounted for over 15% market share in 2022. Several customized & private vacation packages offered by different travel companies, which include accommodation at a resort or a hotel, meals, and sightseeing tours, would promote the market expansion in the coming years.
By tour, the solo segment held over 40% market share in 2022 and is expected to grow substantially through 2032. Traveling solo is cost-effective, puts the person in charge of decisions, helps an individual make decision, improves language skills, and is great for individual well-being.
Considering the generation, the millennial segment held over 25% market share in 2022. Millennials are reshaping the luxury travel industry. Besides, the spending power of the average millennial has also increased significantly. In addition, millennials are also seeking luxury accommodations with top-notch amenities, which will drive the market expansion in the future. The increasing technological advancements and social media will also play a key role in spurring millennials' demand for luxury tourism.
Regionally, the Asia Pacific luxury tourism market is anticipated to exhibit more than 20% CAGR during the estimated timeframe. In addition, introduction to several government initiatives to increase tourism will positively influence the overall regional outlook. In 2022, The State Council of China announced a development plan for the tourism sector during the 14th 5-Year Plan period. The plan aims to bolster tourism sector by integrating cultural development and enhance barrier-free services.
Source: https://www.gminsights.com/industry-analysis/luxury-tourism-market
